Mumbai, Oct 7 (NationPress) With its unique strategy across the AI spectrum, India is strategically positioned to seize a substantial share of the global AI software and services market, according to a recent report.

"By 2028, this market potential is estimated to reach $100-120 billion in revenue, which would represent 50 percent of India's existing IT services market," stated the Boston Consulting Group (BCG) in its latest report released during the opening day of the Global Fintech Fest (GFF) in Mumbai.

However, India is grappling with the “2–20 conundrum”, as it produces nearly 20 percent of the world's data yet possesses a mere 2 percent of global data center capacity.

To bridge this gap, India should aim for at least an 8 percent share (approximately 17 GW) of global capacity by 2030, necessitating large-scale real estate developments and sustainable energy solutions, as highlighted in the report.

India must also enhance and expand AIKosh, the national datasets platform, to cater to the specific model-building requirements of India and other emerging markets.

Moreover, the nation should focus on developing domain-specific, population-scale AI models in sectors such as healthcare, agriculture, education, and financial inclusion.

“India is at a pivotal moment. On one hand, Indian Fintechs have showcased 35 percent growth over the past two years and are on track to reach $190 billion by 2030. On the other hand, AI is reshaping the competitive landscape globally and has rekindled innovation as a top priority for Indian fintechs,” said Yashraj Erande, Global Head of Fintech and India Head of Financial Institutions at BCG.

“The encouraging news for India is its unique positioning on three fronts -- as the world’s largest AI consumer market, a global AI use-case testing ground, and a leading execution hub exporting technology solutions worldwide,” he added.

India boasts both scale and execution capabilities, and the government is making decisive moves with the 'India AI Mission'.

Simultaneously, the global landscape is experiencing an Artificial Intelligence supercycle, with over $1.3 trillion invested globally in the past five years -- four times the funding for global fintech.

The adoption of AI has been unprecedented, with mainstream GenAI tools achieving around 40 percent penetration within just two years among the working-age population, a milestone that took the internet five years to accomplish.

"AI’s influence will not be confined to large enterprises; it holds the potential to transform the lives of individuals everywhere. It can serve as an enabler for 'Convenience in Daily Life' and 'Efficiency in Business Operations'," the report concluded.