Indian Firms to Sustain AI Spending, Says BCG Report

Indian Firms to Sustain AI Spending, Says BCG Report

Indian companies are continuing to invest heavily in artificial intelligence despite economic uncertainties, according to a recent industry report. Business leaders surveyed by global analysts indicated that AI spending remains a strategic priority, with firms planning to maintain or increase budgets for AI initiatives even in 2026. This trend reflects growing confidence that AI can deliver competitive advantages, operational efficiencies, and long‑term value across sectors.

The report finds that organisations are moving beyond early experimentation to embed AI more deeply into core business functions. Use cases now extend from customer service automation and predictive analytics to supply‑chain optimisation, personalised marketing, and risk management. Many firms are also setting up dedicated AI teams, investing in talent development, and partnering with technology providers to scale their AI deployments.

Indian companies face challenges such as talent shortages, data quality issues, and regulatory uncertainty, but executives believe these can be managed with proper planning and governance. There is a growing emphasis on responsible AI practices, data privacy, and building internal capabilities to support sustainable growth. Leaders view AI as not just a technology investment but a strategic enabler of future business resilience.

Overall, the sustained spending trend suggests that Indian firms see artificial intelligence as central to digital transformation efforts, helping them innovate, compete globally, and respond agilely to changing market conditions.

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