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India’s AI journey has entered an important phase. India reveals strong adoption and clear leadership ambitions, but real-world impact remains modest. The study, titled India’s Triple AI Imperative, charts rapid progress in deployment and a future in which AI could change the economy. It also stresses fundamental gaps in execution and value creation.
The report notes that only 1 in 4 business leaders says AI has brought clear value to their companies. Most firms use AI for small tasks and do not apply it across their entire business systems. This limits the improvement AI can bring.
The report highlights a major opportunity for small businesses. India has approximately 64 million MSMEs. If these businesses use AI adequately, they could unlock more than $500 billion in value by 2030. AI can help small firms work faster, cut errors, and reach more customers. However, a large number of small businesses still lack basic digital tools and reliable internet access.
India’s AI journey has been gradual. Companies tested AI mainly for automation between 2018 and 2022. Whereas from 2023 to 2025, AI became part of regular work, such as customer service and smoother operations. Currently, India aims to lead in AI by promoting fair and responsible use through national programs and global meetings.
Despite the progress, several gaps remain. India has many skilled professionals, but few original AI products. Many solutions rely on foreign platforms. AI also runs on outdated systems rather than modern technology. This keeps productivity gains low.
While skilled talent exists, using them in large-scale solutions is a work in progress, as many companies struggle to move beyond pilot projects. Rural areas still face weak digital access. This slows down the utility of AI outside big cities.
Some sectors show better results than others. IT services and customer support see clear gains. Manufacturing, healthcare, and farming or agriculture see slower progress. These industries need focused effort and better tools.
The government and private sector are working together to push AI growth. Large investments and national missions show strong intent. India also wants to guide ethical AI use for developing nations.
India’s AI journey is at a crucial stage, marked by increased AI adoption and leadership goals. However, to have an impact on the economy, the country must integrate the technology into more businesses, create more homegrown solutions, and improve productivity across all sectors.
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