New Delhi, Dec 18 India has the potential to be a global AI leader but faces a gap in value realisation and innovation, "with 44 per cent of executives still investing less than 10 per cent of tech costs in AI and only 25 per cent realising real value," a report said on Thursday.
The report from Boston Consulting Group (BCGX) and the Federation of Indian Chambers of Commerce and Industry (FICCI) said that Indian corporates often limit AI to micro problem solving‑use cases instead of pivoting to functional transformation.
"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 noted.
It further urged joined effort from corporates, startups, MSMEs and policymakers to enable significant economic value from AI.
The report identified strategic priorities including investing in deep innovation and democratising access to the last mile.
Firms classified as “AI future built” can achieve up to 2.7 times return on invested capital and 1.7 times revenue growth, the report said.
“India’s AI momentum is formidable, driven by ambitious enterprises, national institutions and a vibrant startup ecosystem. The gap between AI adoption and AI impact persists and 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.
India ranks in the top quartile globally for AI readiness but contributes less than 1 per cent of global AI patents, the report noted, adding that startup ecosystem is application-rich but needs to significantly improve its innovation depth.
With subsidised access to over 38,000 GPUs for less than Rs 100 per GPU hour, India has provided one of the lowest costs of compute. There are plans to develop indigenous high-end GPUs in the next 3-4 years, it added.
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