Despite 80% developers recognising Gen AI’s benefits, adoption below 40%: BCG Report

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India’s information technology-enabled services (ITes) industry is witnessing a Generative Artificial Intelligence AI (Gen AI) adoption conundrum, with just 40 percent adoption despite over 80 percent of developers recognising its benefits, according to Boston Consulting Group’s (BCG) latest report.

“As global Gen AI investments surge, and the U.S., China, the EU, and the Middle East ramp up on the technology, India risks losing its IT leadership in the IT services sector unless it fully integrates Gen AI into its workflows,” the report read.

For decades, India has been the engine of global IT services—handling complex coding, software development, and digital transformation at scale. Yet, as Gen AI reshapes how software is built, tested, and deployed, the industry faces a stark reality: relying solely on traditional methods will no longer suffice.

“I think enterprises must do three things right. One is move beyond these mass training programs and adopt some customised proficiency-based learning paths which are very tailored to the different projects that developers are relation. Second, I think they should think about establishing Gen AI centres of excellence and we are seeing more and more of that happening in the industry now. And third is how do they incentivise skill building through gamification to certifications, career growth pathways, etc.,” Sambhav Jain, MD and partner, BCG, told Moneycontrol.

This paradox is not just a behavioral, it’s a direct reflection of deep-rooted adoption barriers across the industry.

Jain believes this conundrum represents a missed opportunity for Indian IT services. It’s not just about access - scaling is about behavior change, process transformation, and leadership. Many companies have begun their AI journey such as running proof of concept, experimenting, and seeing early success.

The Indian IT industry has been upbeat about Agentic AI for 2025.

On this, the report says Indian ITes cannot succeed in implementing use cases of Agentic AI without a strong foundation in Gen AI. Skipping Gen AI isn’t an option, organizations that don’t build AI proficiency today will struggle to compete in an autonomous AI-driven world.