India's AI market is expected to triple to $17 billion by 2027, driven by increased investments in enterprise technology, a flourishing digital ecosystem, and a strong pool of skilled professionals. This growth is fueled by rising enterprise tech investments, a thriving digital ecosystem, and a robust talent base.
India currently has over 600,000 AI professionals, projected to double to 1.25 million by 2027, accounting for 16% of the global AI talent pool. The country's digital infrastructure, including public digital infrastructures like Aadhaar, UPI, DigiLocker, and ONDC, provides a scalable base for AI integration across industries.
The startup ecosystem is also thriving, with over 2,000 AI startups emerging in the past three years, supported by a digital ecosystem with over 700 million internet users. Additionally, India is set to add 45 new data centers in 2025, bringing an extra 1,015 MW of capacity to its existing network.
Several Indian companies have successfully deployed AI solutions, including Razorpay, which uses AI for seamless merchant onboarding, and Lenskart, which employs facial mapping and virtual try-on features powered by AI to enhance customer experience. Pocket FM utilized generative AI to cut content production costs by 90%, creating over 100,000 hours of audio, while NoBroker applies image verification through Iris to fast-track property listings.
To successfully scale AI, companies should focus on a framework that allocates 70% of outcomes to people, organization, and process, 20% to data and technological infrastructure, and 10% to algorithm and model sophistication. Additionally, five key enablers are crucial: cross-functional collaboration, modern tech stacks, Centres of Excellence, reskilling initiatives, and responsible AI governance. By adopting this approach, India can unlock the full potential of AI and drive growth, innovation, and progress in various industries.
