Overview

• Gartner forecasts global AI outlays nearing $1.5 trillion in 2025 and surpassing $2 trillion in 2026.
• Generative‑AI features in smartphones are set to be the largest single category, ahead of AI services and AI‑optimized servers.
• The outlook assumes major hyperscaler data‑center buildouts with AI‑focused hardware, with investment broadening to Chinese firms, new AI cloud providers and venture capital.
• BCG expects India’s AI market to expand from $7.8 billion in 2025 to more than $17 billion by 2027, supported by 600,000 AI professionals, 700 million internet users and digital public platforms such as Aadhaar, UPI and DigiLocker.
• Indian adoption is advancing across BFSI, retail, energy and industrials, automotive and healthcare, with startups raising about $665 million in the first seven to eight months of 2025 and studies projecting sizable job and task shifts by 2030.