According to a new Nasscom report, the strategy to adopt artificial intelligence (AI) and data utilization in India can contribute up to $500 billion to India’s GDP by 2025.
‘AI Adoption Index’ by Nasscom, EY and Microsoft, EXL, and Capgemini depicts that AI adoption in four key sectors namely healthcare BFSI, consumer packaged goods (CPG) and retail, and industrials/automotive can contribute about 60% to the total of $500 billion.
The current AI investment rate in India is growing at a compound annual growth rate (CAGR) of 30.8% and is expected to reach $881 million by the fiscal year 2023. Despite that, it will still represent only 2.5% of the total global investments in AI of $340 billion.
The proportion creates a huge opportunity for Indian enterprises to accelerate AI investments and adoption to drive equitable growth across all sectors. According to the report, for India to achieve its $1 trillion GDP goal by fiscal year 2026-2027, there must be a strong correlation to the maturity of AI adoption.
Debjani Ghosh, President of Nasscom said that the pandemic has made it absolutely necessary for organizations to move from data & technology to building specialized AI technology at scale across sectors, combined with a structured strategy for data utilization.
With rapid digitalisation, Indian enterprises have already started opting for AI. According to the report, 65% of organizations have a defined AI strategy either at an enterprise or a functional level. With an increasing number of STEM graduates, India is one of the biggest talent hubs for artificial intelligence.