Introduction

The report AI in India – A Strategic Necessity is published by BCG X, the AI and Digital Transformation unit of BCG, in collaboration with IIM-Ahmedabad’s Brij Disa Centre for Data Science and Artificial Intelligence (CDSA). The report seeks to assess the level of AI implementation within Indian enterprises and their achievements in translating it into tangible business outcomes. The report examines the AI maturity of organisations depending on how they have harnessed the technology’s usage. The findings are based from an examination of 130 firms spanning the Banking, Financial Services, and Insurance (BFSI), Consumer Goods (CG), and Industrial Goods (IG) sectors. This research is supplemented by comprehensive interviews and surveys carried out with CXOs across organizations of varying sizes, including large, medium, and small enterprises.

As the usage of AI is gaining momentum, the technology is poised to bring about a transformative effect on economies, societies, and overall civilization. In India, the effective integration of AI has the potential to contribute as much as 1.4 percentage points to the annual growth of real GDP. The report points out that a notable portion of participants in the Banking sector, along with a smaller subset of companies in Consumer Goods and Industrial Goods, demonstrate a high level of AI maturity that aligns with global standards. The companies have been categorized into 4 groups based on their maturity level— Leaders, Steady Followers, Leapfroggers and Laggards. Interestingly, leadership status was attributed to 11% of the companies who are constantly challenged by 9% of leapfroggers. Laggards account for two-thirds of surveyed participants with limited exposure to AI.

The report also pointed out the skill-gap that India is going to face in future. In fact, should the top 500 listed companies in India prioritize AI as a strategic objective, they would require a minimum of 25,000 to 30,000 proficient AI-ML practitioners within the upcoming 3-5 years. Attaining AI maturity necessitates substantial training and enhancement across areas such as data engineering, enterprise architecture, product management, design thinking, and domain knowledge.

The report also touches upon the roadmap aimed at enhancing AI maturity, with a specific emphasis on an organization's existing level of maturity and its corresponding industry.

Relevance of the Report

The report is a practical guide for Indian enterprises to accelerate their AI maturity. The report presents the most recent insights into the influence of AI on organizations, along with exemplary real-world experiences of AI-driven transformations. It uncovers numerous positive discoveries and offers them to the reader for comprehension.

Key Takeaways

• Effective incorporation of AI by Indian enterprises has the potential to consistently contribute around 1.4 percentage points to the growth of the real GDP
• On the whole, two-thirds of Indian companies are falling behind in terms of AI adoption and maturity
• There is a difference between leaders and laggards when it comes to investing in AI technology. Leaders first prioritize the use-cases and then decide the optimal choice of technology while it is just the opposite for laggards
• Indian BFSI companies, especially banks and emerging NBFCs, exhibit remarkably elevated levels of AI maturity, comparable to global leaders
• Leaders acknowledge that the success of AI adoption hinges on several factors of which 70% stems from the interplay of individuals, organizations, and processes
• The leading 500 Indian companies would necessitate a minimum of 1 million hours for training in enhancing the skills of mid and senior-level management concerning the business dimensions of AI and digital transformation