AI adoption in MSMEs can unlock over $500 bn economic value: BCGX-FICCI report
Nearly 44 per cent of executives still invest less than 10 per cent of their technology budgets in AI
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New Delhi: Adoption of Artificial Intelligence (AI) in India’s 64 million Micro, Small and Medium Enterprises (MSMEs) alone could unlock over $500 billion in economic value, but the country must pivot from an “adopt-first” to an “invent-first” mindset to realise this potential, according to a new report.
The report, titled “India’s Triple AI Imperative: Succeeding with AI in India”, released by Boston Consulting Group (BCGX) and Federation of Indian Chambers of Commerce & Industry (FICCI), noted that while India has one of the world’s fastest-growing AI markets, it faces significant gaps in deep innovation and value realisation. BCG X is the technology build, design, and innovation arm of Boston Consulting Group (BCG).
“A particularly untapped opportunity lies in India’s 64 million MSMEs. AI adoption in this segment alone could unlock over $500 billion in economic value, through productivity gains, cost savings, and improved access to credit,” the report stated.
However, the findings highlighted that barriers such as digital infrastructure, lack of awareness, and access to skilled talent persist in the sector. According to the report, while India ranks in the top quartile globally for AI readiness, it currently contributes less than 1 per cent of global AI patents.
