India has taken a leading role in the global adoption of artificial intelligence (AI), with 80% of companies identifying AI as a core strategic priority, significantly surpassing the global average of 75%, according to a report released on Wednesday.
The report by Boston Consulting Group (BCG) highlights that about 69% of Indian companies plan to increase their tech investments in 2025, with one-third allocating over $25 million to AI initiatives. This surge in investment aligns with the nation’s ambitious digital transformation agenda.
Despite the advancements, less than 10% of Indian executives expect a decrease in headcount due to AI-driven automation. Nipun Kalra, India Leader, BCG X, BCG, emphasized the nation’s commitment to tech investments, with substantial funding directed towards AI initiatives.
In terms of cybersecurity, around 81% of Indian companies acknowledge the need for significant improvements in AI-related measures, reflecting the increasing complexity of AI applications. Kalra noted that Indian companies are leveraging AI for high-impact applications, reshaping workflows, and creating new business models, positioning India as a driver of innovation in the AI space.
However, 76% of Indian executives believe there are significant improvements needed in AI cybersecurity measures, and 54% cite regulatory challenges as major obstacles to AI adoption. On a global scale, only 7% of executives anticipate that AI automation will result in an overall decrease in headcount.
Christoph Schweizer, CEO of BCG, remarked that leading AI adopters have successfully achieved impact by focusing on targeted AI initiatives, scaling them rapidly, transforming core processes, upskilling their teams, and systematically measuring operational and financial returns. In his discussions with CEOs, it’s clear that prioritizing AI is seen as a key driver of productivity.
India’s proactive approach and substantial investments in AI position the country at the forefront of the global AI revolution.
