India’s artificial intelligence (AI) market is poised for remarkable growth, with projections indicating a staggering USD 17 billion valuation by 2027. The Nasscom-BCG report underscores the pivotal role of India in the global AI landscape, driven by factors such as increasing enterprise tech spending, a burgeoning talent pool, and significant investments in AI technologies. This growth trajectory reflects India’s emergence as a key player in AI innovation and adoption, with investments primarily focused on data analytics, GenAI, and machine learning algorithms.

With India boasting the second-highest installed talent base and a remarkable threefold increase in AI skilled talent over the past seven years, the country stands at the forefront of AI-driven innovation. Indian tech companies are expanding their portfolios to include AI-driven solutions across diverse industry verticals, ranging from healthcare to banking and finance. As investments in AI continue to surge, the demand for AI talent is expected to grow at a robust 15% CAGR until 2027, with tech companies witnessing significant growth in AI/ML job positions.

In response to the growing demand for AI talent, leading firms are investing heavily in upskilling and reskilling initiatives, with a focus on AI and related technologies. This underscores the importance of human capital in the AI journey, as organizations recognize the need to equip their workforce with the necessary skills to thrive in an AI-driven landscape. As India accelerates its journey towards AI-driven innovation, a fundamental shift towards a human-centered approach becomes imperative, prioritizing transparency, ethical AI development practices, and human oversight.