New Delhi

Artificial intelligence is set to take the “first right” to perform many tasks before humans by 2026, according to a joint report by Boston Consulting Group (BCG) and the Federation of Indian Chambers of Commerce & Industry (FICCI), launched at the 6th edition of the AI India Conclave.

The report notes that Indian businesses are increasingly shifting towards an AI-first operating model, where technology evolves from a support tool to a core decision-maker driving enterprise operations.

Business work, the report says, broadly falls into three categories—routine tasks, reasoning-based work, and expert tasks. AI can potentially automate 70–80 per cent of routine manual work and 30–50 per cent of tasks requiring logical reasoning and analysis. For highly specialised roles requiring deep expertise, AI is expected to function as a collaborative partner rather than a replacement.

As a result, traditional advantages such as large back-office workforces or extensive physical customer service teams are diminishing, with AI agents increasingly handling customer interactions more efficiently.

Instead, companies are focusing on harder-to-replicate strengths such as brand trust, intellectual property, and AI-fluent talent. Trust has emerged as a critical differentiator, as organisations that deploy AI transparently and responsibly are more likely to gain consumer confidence. Attracting and retaining AI-skilled talent is now a top business priority.

However, the report highlights a significant investment gap. Around 44 per cent of executives allocate less than 10 per cent of their technology budgets to AI, and only 25 per cent report tangible business impact from their AI initiatives so far.

“India’s AI momentum is formidable, driven by ambitious enterprises, national institutions and a vibrant startup ecosystem. Yet the gap between AI adoption and AI impact persists,” said Nipun Kalra, Managing Director and Senior Partner at BCG and Head of BCGX India. “True value will come from building AI-first businesses, driving deep innovation and ensuring inclusive access.”

The report also points to India’s competitive advantage in offering some of the world’s lowest-cost access to high-end computing chips, along with plans to establish over 570 AI labs across Tier-II and Tier-III cities, broadening innovation beyond major metros.

For micro, small and medium enterprises (MSMEs), AI adoption could unlock more than USD 500 billion in value through cost savings and growth opportunities. However, challenges such as inadequate digital infrastructure and skill shortages continue to hinder adoption.

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“India’s opportunity in AI lies not only in scale, but in inclusion,” said Jyoti Vij, Director General, FICCI. “By supporting AI adoption across MSMEs, startups and regional ecosystems, the country can drive productivity gains, create quality jobs and strengthen long-term socio-economic resilience.”