India Ranks Among Top 10 Countries in AI Readiness: BCG Report

India has emerged as one of the top 10 countries globally in Artificial Intelligence (AI) readiness, showcasing immense potential for public sector transformation through the strategic implementation of AI technologies, according to a report by Boston Consulting Group (BCG).

AI readiness refers to an economy’s ability to effectively adopt and integrate AI across various sectors. The report, which analyzed data from 73 economies, highlighted India's remarkable achievements, including ranking second globally in the number of AI specialists and third in research publications. Additionally, the country boasts a robust foundation in AI-related patents.

However, the report also revealed a global challenge, noting that over 70% of the economies surveyed scored below average in critical areas such as ecosystem participation, skills development, and research and development (R&D).

India's Journey in AI: A Growing Powerhouse

“India’s journey to becoming an AI contender underscores the nation’s emphasis on integrating technology into high-priority sectors like agriculture, education, and healthcare. As one of the top 10 countries in AI readiness, India holds immense potential for public sector transformation through AI,” said Saibal Chakraborty, India Leader, Technology and Digital Advantage Practice, BCG.

India’s achievements in the AI domain are reflected in its sectoral contributions:

• Business Services: Representing 16% of the GDP, AI has significant potential to improve administrative efficiency in government operations.

• Retail and Wholesale: Contributing 10% to GDP, AI can streamline public distribution systems and supply chain management, reducing wastage.

• Agriculture, Forestry, and Fisheries: Accounting for 17% of GDP, precision farming and risk assessment powered by AI can boost productivity.

• Public Services: Making up 6% of GDP, AI adoption can enhance service delivery and emergency response mechanisms.

• Construction: At 8% of GDP, AI can revolutionize infrastructure planning and asset maintenance.

• Arts, Recreation, and Personal Services: Another 8% contributor to GDP, this sector can leverage AI for better management of public facilities.

Path Forward: Realizing AI's Potential

To fully harness AI’s transformative power, India must adopt a multi-pronged approach. “Realizing this potential requires a multi-faceted approach: strengthening infrastructure, enhancing AI research capabilities, and expanding workforce training. Investments in research hubs, cloud capabilities, and data systems are critical, alongside efforts to expand AI education in rural areas and foster public-private collaborations,” said Chakraborty.

Furthermore, ethical concerns related to AI adoption must be addressed through regulatory frameworks. These frameworks should monitor biases, ensure responsible usage, and uphold ethical standards.

Aparna Bharadwaj, Managing Director, BCG, emphasized the importance of policy interventions, stating, “Policymakers need to act decisively to prepare for an AI-driven world. This can be achieved by enhancing resilience, productivity, job creation, modernization, and competitiveness.”

Conclusion

India’s inclusion among the top 10 countries in AI readiness is a testament to its growing capabilities in technology adoption and innovation. With strategic investments in infrastructure, workforce development, and ethical governance, the nation is well-positioned to leverage AI for transformative growth across critical sectors. The journey ahead requires collaborative efforts between policymakers, private players, and academia to establish India as a global AI leader.

About Boston Consulting Group (BCG)

Boston Consulting Group (BCG) is one of the world’s leading management consulting firms, known for providing strategic advice to organizations across industries. Founded in 1963 by Bruce Henderson, BCG has grown into a global powerhouse with a presence in over 100 offices in 50+ countries.

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