From Digitization to Intelligence: Assessing the Impact of AI Maturity on Financial Resilience and Market Value in Indian Public Sector Enterprises
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Rama Krishna YELAMANCHILI Department of Finance, Institute of Public Enterprise (IPE), Hyderabad, India
Artificial intelligence (AI) is increasingly reshaping corporate strategy and organisational performance, yet empirical evidence on its impact in large public sector enterprises remains limited. This study examines the relationship between AI maturity, financial resilience, and market value among Indian Maharatna companies, which represent strategically important enterprises operating in infrastructure, energy, defence, and service sectors.
A novel AI Maturity Index (AIMI) was developed using a local large language model (LLM) to analyse approximately 50,000 pages extracted from 140 annual reports covering the period 2016–2025. The AI-generated maturity scores were validated through a retrieval-augmented generation (RAG) framework and human expert verification. Financial data obtained from CMIE ProwessIQ were used to estimate financial resilience, market value, human capital productivity, and operational efficiency using fixed-effects panel regression models controlling for firm size, leverage, and profitability. The results reveal a significant structural break around 2020 and a marked increase in AI maturity following 2021, indicating a transition from basic digitalization to cognitive AI adoption. Higher AI maturity is found to significantly improve financial resilience and market value, while also contributing to operational and human capital performance.
The findings suggest that although Maharatna enterprises have made substantial progress in adopting cognitive AI, the economic benefits of these investments emerge gradually and require time to be fully reflected in corporate performance and market valuation. The study contributes a novel AI maturity measurement framework and provides practical insights for policymakers and managers seeking to maximize the strategic value of AI investments.
Copyright© 2026 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
Article’s History: Received 29th of April, 2026; Revised 9th of June, 2026; Accepted 21st of June, 2026; Available online: 30th of June, 2026. Published as research article in the Volume XXI, Summer 3(93), 2026.
Yelamanchili, R. K. (2026). From Digitization to Intelligence: Assessing the Impact of AI Maturity on Financial Resilience and Market Value in Indian Public Sector Enterprises. Journal of Applied Economic Sciences, Volume XXI, Summer, 3(93), 917–934. https://doi.org/10.57017/jaes.v21.3(93).12
Acknowledgments/Funding: No Funding Received
Conflict of Interest Statement: The authors declare that they have no conflict of interest.
Data Availability Statement: The data supporting the findings of this study are derived from publicly available sources. Annual reports of the sampled Indian Maharatna enterprises are available through the respective corporate websites and the Bombay Stock Exchange (BSE). Financial statement data and financial ratios were obtained from the CMIE ProwessIQ database, which is available through institutional subscription. The AI Maturity Index (AIMI) scores were generated by the author through forensic textual analysis of these publicly available corporate disclosures. Processed data supporting the findings are available from the corresponding author upon reasonable request.
Ethical Approval Statement: This study is based exclusively on publicly available corporate disclosures and secondary financial data. It did not involve human participants, personal data, interviews, surveys, experiments, or animal subjects. Consequently, ethical approval and informed consent were not required under applicable institutional and international research ethics guidelines.
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