Artificial Intelligence has rapidly moved from a set of experimental tools to a central strategic capability in Indian businesses. Its influence now extends far beyond automation, reshaping managerial decision-making, organizational design, human-resource practices, operations, supply chains, platform ecosystems, and sustainability initiatives. This paper examines how AI adoption is evolving across sectors and firm sizes in India, highlighting the opportunities created by India's digital public infrastructure but also the constraints due to uneven data quality, workforce readiness, and regulatory uncertainty. The study, based on contemporary research, outlines how AI changes managerial roles, enhances analytical depth, supports new business models, and strengthens ESG performance. It discusses issues such as the risks of bias, over-reliance on algorithms, and concentration of digital power. It concludes with strategic and policy implications for Indian firms looking to embed AI into core management practice and suggest promising directions for future research.