AI-powered financial solutions can be delivered at Rs 150-250/month; Rs 50/month in 4 years: BCG Report

New Delhi [India], October 7 (ANI): The Artificial Intelligence (AI) powered financial solutions can be viably delivered at Rs 150-250 per month, and with scale and falling inference costs, could reach as low as Rs 50 within 3-4 years, according to a report by Boston Consulting Group (BCG).

"AI-powered financial solutions can already be viably delivered at Rs 150-250 per month, and with scale and falling inference costs, could reach as low as Rs 50 within 3-4 years," Yashraj Erande Global Head of Fintech and India Head of Financial Institutions at BCG.

The report further adds that India is strongly positioned to be the largest adopter of AI with one of the fastest-growing AI economies projected to become USD 17 billion market by 2027.

Indian FinTech firms have demonstrated 35 per cent growth in the last two years and are on track to achieve USD 190 billion by 2030.

"India is at a defining moment. On one hand, Indian Fintechs have demonstrated 35 per cent growth in the last 2 years and are on track to achieve $190 bn by 2030. On the other, AI is rewriting the rules of competitiveness globally and has reignited innovation as a top CXO priority for Indian fintechs," Erande added.

According to Erande, India holds a unique position on three key fronts: it is the world's largest consumer market for AI, a dynamic testing ground for diverse AI use cases, and a leading execution hub that exports technology solutions globally. With its unmatched scale and strong execution capabilities, supported by the government's proactive IndiaAI Mission, the country is well-equipped to lead the global AI revolution.

According to the BCG, with 56 per cent share in global IT services outsourcing, largest GCC network, and proven capabilities of building successful digital public infrastructure, India is well poised to export AI solutions to the world.

Going forward, the report emphasized that scaling AI in India will require more than just innovation, it will demand patient capital. To unlock the full potential of the country's AI ecosystem, enabling Mergers and Acquisitions (M&A) as viable exit routes must be a strategic priority.

The report pointed out that global tech giants have largely grown through acquisitions, citing that the top seven U.S. technology companies collectively represent nearly 1,000 firms brought together through M&A.

To replicate similar momentum in India, the report calls for mobilizing capital from domestic sources, including underutilized pools such as insurance and pension funds like the Employees' Provident Fund Organisation (EPFO). Additionally, tapping into private equity, venture capital, and family offices could provide the financial backbone for India's AI ambitions.

Crucially, the report recommends that policy frameworks be designed to structurally incentivize high-net-worth individuals (HNIs) and private players to direct long-term capital into the AI sector--ensuring the ecosystem is not only innovative but also sustainably funded for the future.

Globally, more than USD 1.3 trillion have been invested worldwide over the past five years, four times global fintech funding, the report added.

It further added that the adoption has been unprecedented with mainstream GenAI tools achieving 40 per cent penetration within two years among working-age populations, a milestone that the internet took five years to reach. (ANI)

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