India’s artificial intelligence market set for explosive growth, reaching $17 billion by 2027: Report

India’s artificial intelligence (AI) market is on the cusp of a monumental surge, projected to reach a staggering $17 billion by 2027, according to a comprehensive joint report by the National Association of Software and Service Companies (Nasscom) and Boston Consulting Group (BCG).

The report identifies three key factors driving this meteoric rise – surging enterprise tech spending, a thriving talent pool, and rising investments in AI research and development.

1. Surging Enterprise Tech Spending: Companies across diverse sectors are increasingly recognizing the transformative potential of AI-powered solutions. The report indicates a significant uptick in tech spending as businesses seek to optimize operations, enhance efficiency, and gain a competitive edge. This surge in demand for AI-driven technologies is reshaping the landscape of industries ranging from finance and healthcare to manufacturing and logistics.

2. Thriving Talent Pool: One of India’s standout advantages in the global AI arena is its burgeoning talent pool. The country currently boasts over 420,000 individuals holding AI-related positions, positioning it as a leader in AI skill penetration globally. This wealth of talent is proving to be a catalyst for innovation and a key driver of the country’s AI growth. As businesses increasingly prioritize AI integration, India’s skilled workforce is poised to play a pivotal role in shaping the future of technology.

3. Rising Investments: The report highlights a substantial influx of both private and public investments into AI research and development. This financial commitment is fostering an environment conducive to innovation, creating fertile ground for startups and established players alike. IT giants like Wipro are at the forefront of this trend, pledging significant investments in AI training and forging partnerships with startups. This influx of capital is expected to propel India to the forefront of global AI innovation.