India, with its robust support systems and burgeoning startup ecosystem, is poised to leverage the transformative power of Artificial Intelligence (AI) and ascend the AI maturity ladder. According to a recent IDC study, India currently stands as an AI Practitioner (stage 2), highlighting its growing commitment to embracing AI technologies across various sectors.
The Growth Trajectory of AI in India
As Indian businesses increasingly recognize the benefits of AI integration, enterprise spending on AI is projected to witness remarkable growth among surveyed markets. The AI software sector is expected to drive substantial market expansion, with estimates indicating a market value of $2.6 billion by 2027. Additionally, AI infrastructure spending is forecasted to reach $733 million within the same timeframe.
India’s AI initiatives aim to enhance employee productivity and elevate customer experiences through innovative AI-driven applications. While a significant portion of large organizations leverage AI/ML for improved business outcomes, a mere 6% consider their AI adoptions as central to their competitive edge. Bridging this gap necessitates a focus on effective change management strategies to maximize the potential of AI deployments.
India’s Strategic Position in the Global AI Landscape
With a forecasted Compound Annual Growth Rate (CAGR) of 31.5% from 2023, India is set to witness the swiftest expansion in AI spending compared to other examined markets. By 2027, AI spending in India is anticipated to reach an impressive $5.1 billion, propelled by the country’s rich data resources and talent pool. India’s strategic advantages, including a robust developer community and widespread skill penetration, position it as a frontrunner in the global AI arena, potentially surpassing even the US.
Future Investments Shaping India’s AI Journey
Investments in AI infrastructure over the years 2024 and 2025 are slated to lay the groundwork for high-impact use cases that promise transformative outcomes in the future. Key sectors such as Banking, Financial Services, Insurance (BFSI), and manufacturing are emerging as top spenders, with the manufacturing industry expected to play a pivotal role in driving economic growth, especially in the electronics and consumer goods sectors.
India’s proactive stance on AI is reflected in the government’s initiatives, with allocations of $30.7 million in FY 2024–25 to establish centres of excellence in AI focusing on agriculture, health, and sustainable cities. This strategic focus underscores India’s commitment to leveraging AI for societal good and economic growth.
Embracing AI for a Thriving Future
The recent AI for India Conference, held on May 14, 2024, unveiled these pivotal findings, emphasizing the transformative potential of AI for India’s growth trajectory. Industry leaders, including Mr. Santhosh Viswanathan, Vice President and Managing Director, India Region, and Sharath Srinivasamurthy, Associate Vice President, IDC, discussed the study’s insights and highlighted India’s journey towards AI excellence.
Santhosh Viswanathan reaffirmed India’s vast potential in the AI landscape, stating, “Amazing India reflects the massive opportunity AI unlocks for our country.” Intel’s commitment to India’s AI journey signifies the country’s position as a key player in shaping the future of AI technology.
As AI continues to reshape industries, embracing this transformative technology is essential for staying competitive in a rapidly evolving digital landscape. The program at the AI for India Conference revolved around the theme of “Bringing AI Everywhere,” underscoring the importance of widespread AI adoption for sustained growth and innovation.
For more insights, you can download the IDC InfoBrief, sponsored by Intel, Asia/Pacific AI Maturity Study 2024, Doc # AP242467IB_India, May 2024 here.
