India has the potential to emerge as a global leader in artificial intelligence (AI), but a gap in value realisation and innovation continues to limit its impact, according to a report released on Thursday.
The report by Boston Consulting Group’s BCGX and the Federation of Indian Chambers of Commerce and Industry (FICCI) said that 44 per cent of Indian executives are still investing less than 10 per cent of their technology budgets in AI, while only 25 per cent are able to realise tangible value from these investments.
It noted that Indian corporates often restrict AI adoption to micro problem-solving use cases, instead of driving large-scale functional transformation across organisations.
“AI-first businesses will redefine how Indian enterprises operate, where AI will have the first right to perform a task. Over 70–80 per cent of routine tasks and 30–50 per cent of reasoning-based tasks can be performed by AI,” the report said.
The report called for a coordinated effort among corporates, startups, MSMEs and policymakers to unlock meaningful economic value from AI adoption.
It identified key strategic priorities, including increased investment in deep innovation and democratising AI access down to the last mile.
Companies categorised as “AI future-built” can achieve up to 2.7 times higher return on invested capital and 1.7 times higher revenue growth, the report said.
“India’s AI momentum is formidable, driven by ambitious enterprises, national institutions and a vibrant startup ecosystem. However, the gap between AI adoption and AI impact persists. True value will come from building AI-first businesses, driving deep innovation and ensuring inclusive access,” said Nipun Kalra, Managing Director and Senior Partner at BCG, and Head of BCGX India.
The report noted that while India ranks in the top quartile globally for AI readiness, it contributes less than 1 per cent of global AI patents. It added that although India’s startup ecosystem is application-rich, it needs to significantly improve its depth of innovation.
Highlighting infrastructure progress, the report said India has enabled subsidised access to over 38,000 GPUs at costs below Rs 100 per GPU hour, among the lowest globally. Plans are also underway to develop indigenous high-end GPUs over the next three to four years.
— IANS
