80% of Indian companies prioritize AI, exceeding the global average of 75%

India is solidifying its position as a global frontrunner in artificial intelligence (AI) adoption, with 80% of companies identifying AI as a core strategic priority, surpassing the global average of 75%, according to Boston Consulting Group’s (BCG) latest AI Radar report. This heightened focus is accompanied by substantial financial commitments, as 72% of Indian enterprises plan to allocate up to $25 million to AI initiatives in 2025, while 16% aim to invest between $26–50 million. These figures place India among the world’s top spenders in AI technology.

Interestingly, India ranks ahead of several developed economies like Japan (53%), the US (59%), and Singapore (63%) in the percentage of companies planning AI investments up to $25 million. This reflects a broader, more inclusive approach to adoption across industries. However, Indian firms lag in the segment investing over $50 million, indicating potential room for deeper engagement with large-scale AI initiatives compared to global leaders.

The report, From Potential to Profit: Closing the AI Impact Gap, surveyed 1,803 C-level executives across 19 markets and 12 industries. It highlights autonomous agents—AI systems capable of achieving goals with minimal human input—as a growing area of focus, with 67% of executives globally prioritizing them in transformation efforts.

While enthusiasm for AI adoption remains high, the study reveals a critical gap in workforce readiness within India. Only 26% of Indian companies have trained more than a quarter of their workforce on AI or Generative AI (GenAI) tools, compared to the global average of 29%. India lags significantly behind leaders like Singapore (44%) and Japan (38%). This underlines the importance of workforce upskilling as organizations navigate the dual challenges of training both users and creators of AI tools.

Despite concerns about AI-driven job losses, only 7% of global executives anticipate workforce reductions due to automation. Instead, most leaders view AI as a tool to enhance productivity, aiming to boost efficiency by 30–50% and enable employees to achieve more with existing resources.

However, the report also underscores a critical challenge: only 25% of global companies have derived meaningful value from their AI initiatives. As Nipun Kalra, MD & Partner at BCG India, notes, companies achieving success in AI are those that align its deployment with strategic priorities rather than pursuing it as a standalone tool. This mindset is key for India’s continued leadership in the rapidly evolving AI landscape.