India is among the top ten countries in artificial intelligence (AI) readiness, and the country has immense potential to transform the public sector through AI, according to a report.
AI “readiness” refers to an economy’s ability to effectively implement and integrate AI. The Boston Consulting Group (BCG) report, based on data from 73 economies, shows that India ranks second in the world for AI specialists and third for research publications, with a base strong portfolio of AI-related patents.
On the other hand, more than 70 percent of the economies studied perform below average in critical areas such as ecosystem participation, skills, and research and development.
“India’s journey to becoming an AI competitor underscores the country’s focus on integrating the technology in high-priority sectors like agriculture, education and healthcare. As one of the top 10 countries in terms of AI readiness, India has immense potential to transform the public sector through AI. ” said Saibal Chakraborty, India Leader, Technology and Digital Advantage Practice, BCG.
“India ranks second in the world for AI specialists and third for research publications, with a strong base in AI-related patents,” he added.
The report further shows that exposure to AI spans several key sectors in India. Business services represent 16% of GDP and are highly exposed to AI, with potential improvements in the administrative efficiency of government operations.
Retail and wholesale account for 10% of GDP, where AI could streamline public distribution and supply chain management, reducing waste. Public services represent 6% of GDP, and AI has the opportunity to improve service delivery and emergency response.
Agriculture, forestry and fishing contribute 17% to GDP and could use AI in precision agriculture and risk assessment to increase productivity.
The construction sector, which accounts for 8% of GDP, can use AI for infrastructure planning and asset maintenance. Arts, recreation and personal services, also at 8%, could benefit from AI in public facilities management.
“Realizing this potential requires a multifaceted approach: strengthening infrastructure, improving AI research capabilities, and expanding workforce training. Investments in research hubs, cloud capabilities and data systems are essential, alongside efforts to expand AI education in rural areas and encourage the public. -private collaborations,” Chakraborty said.
The report also calls for regulatory frameworks to address the ethical use of AI, monitor bias, and ensure responsible adoption of the technology.
Aparna Bharadwaj, chief executive of BCG, urged “policymakers to act decisively to prepare for an AI-driven world.” This objective can be achieved by “strengthening resilience, productivity, job creation, modernization and competitiveness”.
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