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India’s AI market is growing rapidly and is expected to reach $17 billion by 2027, making it one of the fastest-expanding AI economies globally. This rise is driven by enterprise adoption, policy support, and innovation across sectors like healthcare, finance, and manufacturing.
With this growth, artificial intelligence companies in India are gaining investor attention. From established IT giants to emerging startups, several firms are building AI-driven solutions that can reshape industries. For investors, this has opened opportunities to explore the best AI stocks in India, including both large-cap leaders and even some best artificial intelligence penny stocks in India.
In this guide, we’ll look at top AI stocks in India, factors driving their growth and how to identify the best artificial intelligence stocks in India for long-term. Whether you’re tracking artificial intelligence companies in India or searching for the best artificial intelligence stock in India to add to your portfolio, this article will help you get started.
What are AI Stocks?
AI stocks are companies in the share market that earn revenue by developing or enabling artificial intelligence technologies. These companies works in areas like AI software, automation, data analytics, cloud services, or even chip design.
In India, pure AI product firms are few, so most opportunities come from IT services, fintech, analytics, and semiconductor players. Best AI stocks in India are often established tech companies adopting AI at scale.
Artificial Intelligence Industry in India – A Brief Overview
Artificial Intelligence is becoming popular among Indian companies as a tool to improve efficiency and business outcomes. Beyond businesses, AI also offers opportunities to enhance daily life, helping people work smarter, access better services and solve complex problems.
Back in 2018, India invested around US$ 665 million in AI technologies, and this figure is expected to rise sharply to nearly US$ 11,781 million by 2025. This rapid growth highlights how important AI has become in driving innovation and competitiveness.
India has steadily built a strong foundation in AI, and its adoption has expanded in last decade. According to a 2018 NITI Aayog report, AI has the potential to add $957 billion to India’s economy by 2035, reflecting its power to generate both economic value and social impact.
Today, AI applications are visible across multiple sectors such as education, agriculture, and healthcare. From providing precision farming advice to enabling remote medical diagnoses, AI is reshaping industries and improving access to essential services, including government programs.
A report by BCG and Nasscom projects AI market in India will reach $17 billion by 2027, making it one of the fastest-growing AI markets globally. For investors, this growth also shines a spotlight on opportunities in the artificial intelligence companies in India.
A 2023 PwC survey found that around 54% of companies have implemented AI for business, with increased momentum post COVID as companies adopted AI tools to streamline workflows. India produces 16% of the world’s AI talent pool, and its AI market is expected to grow by 20% over the next five years, according to a joint study of Microsoft & Internet and Mobile Association of India.
Many Indian companies, already technology leaders are now leveraging AI for innovative solutions. While some are pure play AI companies, most collaborate with others or establish their own AI based solution verticals.
Top 10 AI Shares to Invest in India
Here is a list of best 10 Artificial Intelligence shares in India.
Note: As of 9 March 2024
Overview of Best AI Stocks to Invest in India
- Tata Elxsi
Tata Elxsi, a technology firm within the Tata group is a leader in India’s AI landscape. They offer various AI based solutions such as video analytics, customer experience management and conversational AI like SymanTEx and TESA.
As part of the Tata group, Tata Elxsi isn’t just another IT services company it specializes in providing design, connectivity and integration services to sectors like Automotive, Communication, Media and Healthcare. Leveraging AI, they implement advanced services in areas like autonomous cars and wearables.
- Kellton Tech Solutions
Kellton Tech Solutions headquartered in Hyderabad specializes in IT services offering digital transformation and consulting across various sectors. The company is focused on emerging technologies like AI, machine learning and IoT. Their AI solutions range from chatbots to predictive analytics and intelligent automation. The company has built an AI-driven healthcare platform using machine learning to personalize patient care.
Kellton recently opened the Kverse Customer Experience Center and Innovation Lab at their Gurgaon office in India. This facility highlights Kellton’s expertise in digital transformation, Cloud, IoT, Analytics and AI. It also showcases emerging technologies like Web3 and the Metaverse.
- Saksoft
Saksoft, a company shifting its focus to AI offers comprehensive AI services including consulting, data mining, ML development, computer vision and NL -based sentiment analysis. It provides technology services to industries like Fintech, Utilities, Healthcare, Transport and Logistics, primarily serving small and medium enterprises
- Happiest Mind
The company offers solutions that use advanced technology like augmented intelligence, natural language processing, image and video analysis, and emerging tech such as AR and VR. Happiest Minds also offers data analytics, cloud computing, networking, engineering, digital solutions, infrastructure and other support services to clients globally.
- Bosch
Bosch a multinational company based in German, is among the AI stocks in India. They specialize in producing technology and services for various sectors including mobility, industrial technology, consumer goods, energy and building technology. Recently, they revealed plans to use AI in manufacturing processes to enhance efficiency.
- Persistent Systems
An Indian IT services company, Persistent Systems offers AI based solutions to clients across various industries. It has invested in AI research and development, resulting in several AI based solutions for its clients. Its offerings include Generative AI solutions, software engineering products, Digital designs, CX strategies, Intelligent Automation, Cloud services and cloud infrastructure.
- Zensar Technologies
Established on 26 March 1963, Zensar Technologies Ltd. is a key player in digital solutions and technology services. It supports global organizations across sectors in their Digital Transformation efforts. Initially, it partnered with international firms like ICL UK, Fujitsu Japan, and Northern Telecom Canada. Zensar offers innovative IT services, including AI powered data analytics, cloud transformation, automation and digital workspace solutions.
- KPIT Technologies
KPIT Technologies, a prominent Indian multinational company, specializes in providing software, AI, and digital solutions to the automobile and mobility sector. They operate extensively in the U.S., UK, and Europe. Their offerings include solutions for automated driving, advanced driving assistance, battery management systems, high-powered inverters, advanced charging equipment, and more.
- Cyient
Cyient is an Indian engineering services company offering AI-based solutions to clients across various industries. Established in 1991 as Infotech Enterprises Ltd, it focuses on global technology services like geospatial engineering, IT solutions, and data analytics. Headquartered in India, Cyient operates development facilities in the country and serves an international clientele through subsidiaries in the U.S., U.K., Germany, Japan, Australia, Singapore, and India. They specialize in digitizing drawings and maps, remote sensing, computer design and modeling, and repair development engineering, aiding industries in leveraging location in the digital age.
- Oracle Financial Services Software
Oracle Financial Services Software Limited, an Indian subsidiary of Oracle Corporation, develops software for banks and insurance sectors. They’ve integrated AI into their products, allowing customers to access AI capabilities within the product interface. Oracle’s AI is utilized for data processing, analytics, document processing (KYC), and customer onboarding. It is recognized as a top AI stock company because of its wide ranging use of Artificial Intelligence in the finance industry.
Union Budget 2025-26 Allocations for AI Sector in India
- Education & Talent Development: A fund of ₹500 crore has been allocated to set up a new Centre of Excellence (CoE) for AI education. This initiative will create standardised curricula, train teachers, and build a skilled AI workforce.
- Research Infrastructure: Additional funding under National AI Mission will enhance research facilities and encourage collaboration between academics and industries, ensuring that research moves from labs to real-world applications.
- Sectoral AI Applications: Budgetary support has been provided for AI adoption in agriculture, healthcare, and governance. Use cases include crop yield optimisation, early disease detection and improving public service delivery.
- Public-Private Collaboration: The government will encourage partnerships between private companies and public institutions to speed up AI adoption across critical sectors.
- Startup Support & Incentives: Startups working on AI-led products and services will benefit from simplified compliance rules and targeted incentives, encouraging innovation in this space.
- High Growth Potential: AI market in India is expanding rapidly, with projections showing it could reach $17 billion by 2027. This momentum creates strong opportunities in the best AI stocks in India.
- Diversification: AI is being applied in industries like healthcare, finance, manufacturing and retail, giving investors exposure to multiple growth areas through a single investment theme.
- Innovation-Driven Returns: By investing in top AI stocks in India, investors are backing on technologies that are shaping the future of automation, analytics, and digital transformation.
- Government Support: Initiatives such as National AI Mission and budget allocations for AI research, education and startups are creating a supportive environment for artificial intelligence companies in India share market.
- Scalability & Efficiency: Many AI companies in India are building scalable, cloud-based, and data-driven models that generate recurring revenues while improving operational efficiency.
- Market Volatility: Like other tech driven sectors, artificial intelligence stocks in India can see sharp price swings due to market trends, global events, or sudden shifts in investor sentiment.
- Changing Technology: AI and machine learning are evolving quickly. Companies that fail to innovate or invest in R&D risk losing their edge, which can impact their long term value.
- Execution Challenges: Many AI firms face hurdles in scaling products or aligning AI strategies with business goals. Delays in launches or adoption can hurt financial performance.
- Regulatory & Data Privacy: With growing focus on data governance and ethical use of AI, stricter regulations could increase compliance costs and affect how AI products are deployed.
Factors to Consider Before Investing in Best AI Shares in India
A few factors you should consider before investing in top AI stocks in India are as follows:
- Financials: Before investing in AI company in india, carefully examine its financial fundamentals. Analyze balance sheet and cash flow statement of the company. Pay close attention to the company's debt, profitability, cash flow and earnings per share.
- Technical: Before investing in AI stocks, consider the company's high valuation and technical indicators like moving averages, support and resistance.
- Regulations: Before investing in AI stocks, you should be aware of the evolving regulations in India's AI sector.
- Client Base: Look for companies with diverse clients willing to invest in AI solutions, enabling them to develop their AI capabilities.
- Management: When investing in AI companies, examine the management team's track record and expertise. Skilled leaders with industry knowledge and a clear growth vision reassure investors about the company's future success.
Final Words
When considering best artificial intelligence stocks in India, investors should carefully consider the risks and opportunities. They should evaluate factors like company revenue, market share, profitability, and growth potential. Companies showing strong growth are likely to offer better returns. It’s wise to carefully assess all aspects before adding AI stocks to your investment portfolio, with a cautious approach and limited exposure.
FAQs on Top AI stocks in India
Who should invest in AI stocks in India?
Investors with a long term outlook, interest in technology and willingness to take moderate risks can consider AI-related stocks in India for portfolio diversification.
How to find best AI penny stocks in India?
Use stock screeners with filters like market cap, revenue growth and innovation focus. Research company fundamentals before choosing best artificial intelligence penny stocks in India.
What is the future projection of the artificial intelligence sector in India?
AI sector in India is projected to reach $17 billion by 2027, driven by enterprise adoption, government support, and innovations in healthcare, finance, and manufacturing.
Are Artificial Intelligence stocks in India a good investment for the long term?
Yes, if chosen wisely. The best AI stocks in India offer long-term growth potential due to rising adoption, innovation, and supportive government policies.
How to invest in AI Stocks?
Investors can buy artificial intelligence companies in India through brokers or online platforms.
Which Tata company is AI company?
Tata Elxsi share is a leading Tata Group company using AI to deliver innovative solutions across industries, including healthcare, automotive, and digital engineering.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
