A combination of robust research initiatives, the explosive growth of AI startups, favourable government policies, and a strong emphasis on data analytics is propelling this widespread uptake. Together, these drivers are not only accelerating AI deployment in traditionally tech-forward domains but are also creating ripples across sectors like pharma, FMCG, and even infrastructure. The growing momentum signifies India’s strategic positioning in the global AI ecosystem, where innovation & implementation go hand in hand.
Strong AI adoption in sectors like BFSI & tech has been underpinned by research excellence, startup momentum, and increased reliance on data analytics. These factors also influence how AI solutions are being developed and deployed across industries. GenAI startups are emerging as key enablers, with a growing presence in both sector-specific & sector-agnostic applications. Their model selection strategies, shaped by cost structures & customisation needs, are further defining the pace & direction of AI-driven transformation in India.
GenAI startups in India are carving a broad path across industries, with a notable ~31% offering sector-agnostic solutions. This widespread applicability, particularly in IT, retail, & healthcare, underscores the versatility & commercial promise of generative AI. Startup model preferences are being shaped by factors such as lifecycle cost, licensing, & customisation capabilities, which are driving a shift toward open-source models, despite their higher ownership costs. Interestingly, ~68% of these open-source model adopters are already seeing revenues up to US$ 500K, signalling tangible ROI. This reveals not just the enthusiasm for GenAI but also a strategic, revenue-oriented approach to model selection & implementation.