What AI Leaders are Doing Differently To Achieve Maximum ROI 30% of Indian companies have adopted AI, surpassing the global average of 26%
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Breaking a common misconception of Artificial Intelligence (AI) that its value lies mainly in accelerating productivity in support functions of businesses, AI mature companies are generating the greatest value of AI from their core business processes. Notably, 30 per cent of Indian companies have adopted AI, surpassing the global average of 26 per cent, according to a BCG report,"Where's the Value in AI?" Moreover, using AI in both core and support functions provides companies with a significant competitive edge.
"India's swift adoption of AI is redefining its competitive edge globally, with 30 per cent of Indian companies having maximized AI's value potential—surpassing the global average of 26 per cent...with 100 per cent of companies actively experimenting with AI, India stands out for its readiness to harness AI's potential," said Saibal Chakraborty, India Leader, Technology and Digital Advantage Practice, BCG.
By 2027, companies with AI maturity expect to generate revenue growth from AI that is 60 per cent higher than that of other companies, with anticipated cost reductions almost 50 per cent greater.
AI Innovation over Productivity
Seventy-five per cent of surveyed companies considered to be highly innovative and progressive focus their efforts on long-term growth and sustainability by integrating AI into their core business operations, such as developing new products, creating new business processes, and enabling their workforce. These companies aren't merely using AI to improve productivity or efficiency in basic tasks, which is how the remaining ten per cent of surveyed companies use AI.
Leading companies are strategic in their AI and digital investments. Rather than attempting to do everything, they concentrate on a few high-priority areas with the highest return on investment (RoI). Data shows these leaders undertake about half as many AI projects as less advanced companies but select those with the most potential. Due to this focused approach, they expect more than twice the RoI from AI in 2024 compared to other companies. Additionally, they excel in deploying AI tools and services across their organization, scaling up more than twice as many AI projects successfully compared to their peers. This targeted focus and successful scaling enable them to maximize AI's value throughout their business.
Furthermore, almost 45 per cent of leading bosses use AI for both cost-cutting (compared to only 10 per cent of non-leaders) and revenue generation. More than a third of leaders prioritize revenue generation from AI.
2027 Expectations
As per the report, by 2027, the top 26 per cent of AI-advanced companies expect to see significantly greater gains than others—45 per cent more from cost savings and 60 per cent more from increased revenue. Even as early as 2024, these leading companies anticipate receiving more than twice the RoI from AI compared to others. This focus on AI is projected to help them reduce operating costs by 5 per cent and boost revenue by 5 per cent. In short, companies with AI maturity expect much greater value in both cost savings and revenue growth compared to companies that are less advanced in AI.
