By 2027, the Indian AI market is expected to reach $17 billion.

Based on a collaborative analysis by consulting firm BCG and IT industry organization Nasscom, the country's artificial intelligence market is expected to reach $17 billion by 2027, rising at an annualised rate of 25–35 percent between 2024 and 2027. The report was released on Tuesday.

The two said in a statement prior to the report's release on Wednesday that the gain is attributed to rising AI investments, the nation's growing pool of AI talent, and an increase in enterprise IT spending.

The survey stated that India has the greatest skills penetration rate for AI and that over 420,000 workers presently hold roles in AI-related fields.

In order to compile the report, a survey of over 65 respondents from larger- and mid-sized IT organizations, business process management firms, and global capability centers was conducted.

The research is released at a time when IT firms have set aside large sums of money for staff training, startup investments, and expanding their capabilities in cutting-edge technology. Wipro announced a $1 billion, three-year investment in artificial intelligence last year.According to the report, as AI investment increases, India's need for AI talent would also rise at an annualized pace of 15% until 2027.

It also stated that 90% of the top 25 technology service companies had committed to extensive Gen AI skilling.