On the first day of the Global Fintech Fest (GFF) 2025, themed ‘Empowering Finance for a Better World Powered by AI’, the Boston Consulting Group (BCG) released its key report titled ‘Convergence: Human + AI for the Next Era of Finance’. This report arrives during an AI supercycle, with over $1.3 trillion invested globally in the last five years, which is four times the funding for global fintech. The adoption of AI has surged, with mainstream GenAI tools reaching approximately 40% penetration among working-age individuals within two years, a feat the internet took five years to achieve. The influence of AI is expected to extend beyond large corporations, potentially transforming the lives of individuals.
It can facilitate ‘Convenience in Daily Life’ and ‘Convenience in Business Operations’. The report discusses AI-driven applications like JanArth.AI and VyaparSaathi.AI, which could revolutionize personal finance management for households and serve as a virtual CFO for small businesses. Yashraj Erande, Global Head of Fintech and India Head of Financial Institutions at BCG, stated, ‘India is at a defining moment. While Indian Fintechs have shown 35% growth in the last two years and are on track to reach $190 billion by 2030, AI is changing the global competitiveness landscape and has reignited innovation as a top priority for Indian fintechs.
India’s unique position stems from being the largest AI consumer market, a global AI use-case playground, and a key technology solution execution hub. The country has both the scale and execution capabilities, supported by the government’s IndiaAI Mission.’ To fully harness the AI opportunity, India must execute across the entire AI ecosystem. The report outlines several key areas: Infrastructure: Achieve Global Scale, Anchor Locally – India generates nearly 20% of the world’s data but currently holds only 2% of global data center capacity. To bridge this gap, India should aim for an 8% share (around 17 GW) of global capacity by 2030, necessitating substantial real estate and sustainable energy investments.
Compute: Employ a dual strategy by strengthening global partnerships while investing in domestic GPU design. Data: Establish the World’s Most Comprehensive Ethical Data Commons – India needs to enhance and expand AIKosh, the national datasets platform, to meet the unique modeling requirements of India and other emerging economies. Models: Design Purpose-Built AI for Bharat and the Global South – India should focus on developing domain-specific, large-scale AI models in sectors like healthcare, agriculture, education, and financial inclusion, tailored to the distinct needs of the Global South, with multilingual and multimodal capabilities that effectively serve diverse populations, especially in Tier-2+ cities and rural areas.
Capital: Mobilize ₹10 Lakh Crore+ for AI Innovation – Access to patient capital is essential for scaling AI in India. Facilitating mergers and acquisitions should be prioritized, as global tech leaders have scaled primarily through such means. Tapping into domestic resources like insurance and pension funds (EPFO), along with private equity, venture capital, and family offices, can drive AI funding. Policies should incentivize high-net-worth individuals (HNIs) and private enterprises to invest long-term in AI. Talent: Position India as the Global AI Brain – India can become a leader in AI by enhancing research capabilities, retaining talent, and expanding training programs.
Applications: Capture a Notable Share of Global AI Revenues – With its unique approach across the AI landscape, India is poised to secure a significant portion of the global AI software and services market, projected to reach $100–120 billion by 2028, which would represent nearly 50% of India’s current IT services market. Although AI is experiencing a surge of deployment announcements, substantial investments, and a race for technological dominance, only 27% of companies worldwide are realizing its full value. The report presents a 10-point strategy for the BFSI sector in India to achieve AI benefits at scale, moving beyond pilot programs to create real value.
It stresses the importance of responsible and inclusive AI adoption to maintain this value, ensuring fairness, transparency, and trust as AI becomes integrated into financial systems. AI has once again placed innovation at the forefront of CXO discussions, with nine out of ten leaders prioritizing it and one in four planning to increase AI budgets by over 60% in the next two years. However, challenges remain, including the need for coherent strategies and addressing talent, data, and infrastructure gaps. Leaders highlight the necessity of scaling beyond pilot initiatives and adopting UPI-style open innovation to unlock AI’s full potential in finance.