India’s artificial intelligence (AI) market is projected to grow at a 25 per cent compound annual growth rate (CAGR) to reach about $17 billion by 2027, according to a report by Nasscom and the Boston Consulting Group.
This growth will be fueled by multiple factors, including increasing enterprise tech spending, India’s growing artificial intelligence (AI) talent base, and a significant increase in AI investments, according to the report titled “AI Powered Tech Services: A Roadmap for Future-Ready Firms; AI and GenAI’s Role in Turbocharging the Industry.”
India is among the top five nations with 14 times the growth in individuals skilled with AI in the last seven years, and the country boasts the second-largest talent pool in AI, with 420,000 employees engaged in various AI job roles, the report said.
- India is among the top five nations with 14 times the growth in individuals skilled with AI in the last seven years
- The country boasts the second-largest talent pool in AI, with 420,000 employees engaged in various AI job roles
- The skill penetration is also the highest, with three times more AI-skilled talent than in other countries
The skill penetration is also the highest, with three times more AI-skilled talent than in other countries. As investments in AI continue to increase, the demand for AI talent in India is also expected to grow at a 15% CAGR till 2027, according to the survey.
Several top companies are making significant investments in upskilling and reskilling their employees in AI and other related technologies, setting aside $1 billion for this initiative over the next three years. This shows how crucial human resources are to the advancement of AI.
“With the advent of Gen-AI, Indian tech companies are expanding their portfolios beyond traditional IT and business process management to include AI-driven analytics, intelligent automation, and personalized customer interactions. These companies are not just adopting AI; they are redefining their service offerings, creating more value for their clients, and setting new industry standards,” Nasscom president Debjani Ghosh said.
“Accelerating this journey will require massive-scale investment in AI skilling, investments in ethical and secure AI development practices and governance frameworks, and a fundamental shift towards a human-centered approach, prioritizing transparency and human oversight,” she added.
Globally, investments in AI have grown at a CAGR of 24 per cent since 2019, with $83 billion invested in 2023. The majority of these investments have been channeled to AI applications in data analytics, GenAI, machine learning algorithms, and platforms, according to the report.
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