Women Key For India's $320 Billion AI Market, But Gender Disparity Remains: NASSCOM-BCG

A new report by NASSCOM and BCG has highlighted the significant role women can play in India's booming artificial intelligence (AI) market, which is projected to reach $320-$380 billion by 2027.

A new report by NASSCOM and Boston Consulting Group (BCG) has highlighted the significant role women can play in India's booming artificial intelligence (AI) market, which is projected to reach $320-$380 billion by 2027. However, the report also revealed a troubling gender disparity in AI leadership that threatens to hold the country back.

India Has 64% Gender Gap In AI Leadership Compared To Global Peers

The report, titled "GenAI: The Diversity Game Changer We Can't Ignore", analysed the adoption of AI and generative AI (GenAI) among women in India. It found that while women make up 36 per cent of the country's tech workforce, they remain vastly underrepresented in executive roles, with a 64 per cent gender gap in AI leadership compared to global peers.

"Globally, senior women lead in GenAI adoption, yet India lags with a 64 per cent gender disparity in AI leadership," Sreyssha George, Managing Director and Partner at BCG, said in a statement. "To capture the $320 billion AI market, India's tech sector needs diversity. This will ensure effective systems by eliminating biases and incorporating varying ethical perspectives."

The report highlighted women's strong ambition to succeed in AI, with 95 per cent of junior, 96 per cent of mid-management, and 100 per cent of senior management women willing to invest more time to achieve professional growth in this domain. However, it also revealed significant barriers, with only 35 per cent of surveyed women feeling fully prepared by their employers to utilise GenAI tools.

"Despite significant progress in diversity and AI/GenAI adoption, substantial gaps still limit women's full potential in the tech industry," said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at NASSCOM. "With GenAI set to dominate, it is critical to address key challenges such as knowledge gaps and lack of support, to empower women, particularly in these roles."

To bridge this gap, the report recommended actions such as defining clear career pathways, providing mentorship, enabling flexible work arrangements, offering ethical training, and fostering an inclusive culture. Addressing these barriers could not only empower women but also contribute to a more equitable and dynamic tech landscape in India.

As the country looks to capitalise on the AI revolution, industry leaders emphasized the urgent need to rectify the gender imbalance and unlock the full potential of women in this transformative field.