AI and the future of work is taking shape in India as a BCG–FICCI report released on December 18, 2025, says wider AI adoption across 64 million MSMEs could unlock over $500 billion in economic value, strengthening productivity, employment quality, and long-term resilience.
What the report says about AI and the future of work
The report projects that artificial intelligence will increasingly handle routine and reasoning-based tasks by 2026. It estimates AI could perform 70–80 per cent of routine work and up to 50 per cent of reasoning tasks.
This shift signals structural changes in how work is organised across Indian enterprises.
The study is titled “India’s Triple AI Imperative: Succeeding with AI in India.”
It was released by Boston Consulting Group’s BCG X unit and the Federation of Indian Chambers of Commerce and Industry (FICCI).
India AI market growth and the MSME opportunity
India ranks among the top quartile globally for AI readiness. However, it contributes less than 1 per cent of global AI patents. The report says this gap limits value creation.
The growth of the India AI market remains uneven, especially among MSMEs. AI adoption in small firms could improve access to credit, reduce costs, and raise output.
The report places MSMEs at the centre of AI and the future of work in India.
Barriers slowing AI adoption in the future of work
Despite strong interest, investment remains low. Nearly 44 per cent of executives allocate less than 10 per cent of their technology budgets to AI. Only 25 per cent report real value from AI deployment.
The report flags gaps in digital infrastructure, awareness, and skilled talent. It states that many firms still utilise AI for limited tasks rather than implementing business-wide transformation.
Impact on jobs and skills
AI and the future of work will not rely on scale alone.
FICCI Director General Jyoti Vij said inclusion across MSMEs and regional ecosystems remains critical.
She said wider adoption can support productivity, quality employment, and socio-economic stability.
BCG said firms need to shift from an “adopt-first” to an “invent-first” approach. The report stresses building AI-first businesses rather than solving isolated problems.
Forward path
The study outlines a transition toward AI-led operating models without changing labour safeguards. It frames AI and the future of work as a structural shift already underway in India’s economy. Implementation will depend on investment, skills, and access.
