Can India Become a Global AI Leader by Focusing on Value Realization and Innovation?
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Synopsis
Discover how India can ascend to the forefront of global AI leadership. While there are challenges in value realization and innovation, the country is equipped with a vibrant startup ecosystem and ambitious enterprises. Learn about the strategic priorities that could unlock significant economic potential in the AI sector.
Key Takeaways
- India has the potential to lead in AI, but gaps in investment and innovation exist.
- AI-first businesses can significantly improve operational efficiency.
- Collaborative efforts are necessary to unlock the economic value of AI.
- Strategic investments in deep innovation are essential.
- India’s affordable access to computing resources is a significant advantage.
New Delhi, Dec 18 (NationPress) India is poised to emerge as a global leader in artificial intelligence, but it encounters challenges in value realization and innovation. According to a report published on Thursday, 44 percent of executives still allocate less than 10 percent of their technology budget to AI, and merely 25 percent are able to derive substantial value from it.
This report, formulated by the Boston Consulting Group (BCGX) alongside the Federation of Indian Chambers of Commerce and Industry (FICCI), indicates that Indian companies frequently restrict AI applications to minor problem-solving scenarios rather than embracing comprehensive functional transformation.
Businesses that prioritize an AI-first approach will revolutionize operational processes within Indian enterprises, with AI being the primary executor of numerous tasks. It is projected that between 70-80 percent of routine tasks and 30-50 percent of reasoning-based tasks can be handled by AI, as noted in the report.
Moreover, the report calls for collaborative efforts among corporates, startups, MSMEs, and policymakers to unlock significant economic benefits from AI technologies.
Strategic priorities highlighted include investing in deep innovation and ensuring access to technology reaches the last mile.
Firms categorized as 'AI future built' could potentially achieve returns on invested capital of up to 2.7 times and experience revenue growth of 1.7 times, according to the findings.
“India’s momentum in AI is impressive, fueled by ambitious enterprises, national institutions, and a dynamic startup ecosystem. However, there remains a gap between AI adoption and its tangible impact. True value will be realized through the establishment of AI-first businesses, fostering deep innovation, and promoting inclusive access,” stated Nipun Kalra, Managing Director and Senior Partner at BCG, and Head of BCGX India.
Despite ranking in the top quartile globally for AI readiness, India contributes less than 1 percent of global AI patents. The report further emphasizes that while the startup ecosystem is rich in applications, it must enhance its depth of innovation.
With access to over 38,000 GPUs available at a subsidized rate of less than Rs 100 per GPU hour, India offers one of the most affordable computing options. Plans to develop indigenous high-end GPUs in the next 3-4 years were also mentioned.
Point of View
It is crucial to recognize that India's journey toward becoming a global AI leader is not just about technology but also about collaboration and innovation. Emphasizing an AI-first approach can significantly affect various sectors in our economy. National stakeholders must work together to address the existing gaps in value realization and innovation to fully capitalize on AI's potential.
NationPress
18/12/2025
Frequently Asked Questions
What is India's current status in AI?
India ranks in the top quartile globally for AI readiness but contributes less than 1% of global AI patents.
How can Indian businesses leverage AI?
Businesses can leverage AI by transitioning to an AI-first approach, which allows for greater efficiency and innovation in operations.
What are the strategic priorities for AI in India?
Key priorities include investing in deep innovation and ensuring access to technology reaches all sectors.
What potential returns can AI-focused firms expect?
Firms with an AI-first strategy can achieve up to 2.7 times return on invested capital and 1.7 times revenue growth.
What role do startups play in AI development in India?
Startups are crucial in creating application-rich environments, but they need to enhance their innovation depth to contribute more effectively.
