A report by Boston Consulting Group (BCG) said that only 26% of Indian companies have reached AI maturity, highlighting that this select group of AI leaders is experiencing substantial benefits, achieving 1.5 times the revenue growth, 1.8 times the total shareholder returns, and twice the number of innovation patents compared to less mature peers.
According to BCG’s findings, nearly every surveyed company in India acknowledges the potential of AI and has begun experimenting with it. However, the transition from pilot projects to real-world value generation remains elusive for many. Only one in four Indian companies has advanced to an “AI-mature” level, where AI is embedded in broader business strategies and scaled across departments.
“AI has shifted from hype to reality, uncovering a clearer path to achieving value,” said the report. Yet, only a few organisations have activated the right levers to move from experimentation to delivering tangible impact.
What sets AI leaders apart in India?
According to the report, AI leaders focus on two core strategies:
Instead of dispersing efforts across numerous low-impact AI projects, leaders in AI maturity focus on a select few, high-priority areas, particularly within critical functions such as sales, marketing, R&D, and operations. The report highlights that over 60% of AI’s value for leaders in India stems from these core-to-business functions, compared to support roles.
Secondly, AI leaders apply the “10-20-70 principle” where only 10% of their focus is on technology, 20% on algorithms, and a dominant 70% on people, processes, and organisational transformation. The report emphasises that leading companies see AI transformation as a people transformation versus a tech-only project.
BCG said that by leaning into these practices, AI leaders in India achieve more than double the return on investment compared to companies that lack a clear AI strategy.
The financial and non-financial benefits of AI maturity are stark. According to the report, companies that have reached AI maturity report have witnessed 1.5x Revenue Growth, 1.8x Total Shareholder Returns, 2.0x Innovation Patents, 1.4x Higher Employee Satisfaction among others.
GenAI adoption in India
The report highlighted that India’s AI leaders are at the forefront of Generative AI adoption, using it in customer service, code development, and operational workflows. Leaders reported up to 2.1x greater ROI from GenAI solutions, demonstrating its role in productivity gains and new product innovations.
“Generative AI is accelerating the digital transformation across all business functions,” the report said, as firms integrate these capabilities to augment efficiency and foster personalised customer interactions.
The challenges
Despite the successes, BCG’s report underscored significant hurdles Indian firms face in scaling up AI solutions. Some of the challenges are accessing high-quality, reliable data remains a fundamental barrier for many firms, which impedes the effectiveness of AI models, Companies also struggle with the costs associated with deploying and maintaining AI models, especially as they scale.
India’s shortage of specialised AI talent, including data scientists and engineers, limits many firms’ abilities to mature their AI capabilities.
The report also pointed out that companies need to foster a culture of AI literacy to promote effective adoption and long-term value generation.
