India’s domestic AI market to triple to $17 billion by 2027: BCG report

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India’s domestic artificial intelligence market is projected to triple to $17 billion by 2027, making it one of the fastest-growing AI economies, a Boston Consulting Group’s (BCG) report released on June 11 said.

AI is no longer confined to pilots and proof-of-concepts anymore, as Indian enterprises move to realise return on investment (RoI), the India’s AI Leap: BCG Perspective on Emerging Challengers report said. Rising enterprise tech investments, a thriving digital ecosystem, and a robust talent base are driving the change.

“With over 700 million internet users, high mobile penetration, and robust digital public platforms like UPI, India offers a unique launchpad for scalable, cost-efficient AI innovation,” the report said.

In terms of talent growth, India already has over 600,000 AI professionals, with the number expected to double to 1.25 million by 2027, the report added. “The country accounts for 16 percent of the global AI talent pool, second only to the United States, a reflection of both its demographic advantage and STEM education pipeline," it said.

Mandeep Kohli, Managing Director and Partner, BCG India, said, “AI is no longer an option but a business necessity. Indian companies are using it to leapfrog traditional growth curves and compete confidently on the global stage.”

“While the hurdle rate for successful deployment is high, the rewards are even higher, and the results speak for themselves. What separates the leaders is not just the tech, but how they manage change, build talent, and embed AI into the fabric of their organization,” he added.

The report talked about several startups and companies that have successfully deployed AI. These firms include Razorpay (Fintech), Lenskart (Consumer), Pocket FM (Media & Entertainment), and NoBroker (PropTech) which have been using AI to streamline operations, personalise user experiences and unlock new revenue streams.

“From automating 80% of customer support at Razorpay to cutting content production costs by 80% at Pocket FM, and enabling smart property management at NoBroker, these case studies show how Indian innovators are moving beyond pilots to scale—transforming their industries with data-driven speed, precision, and growth,” the report said.