The adoption of artificial intelligence (AI) and data utilisation strategies can add $500 billion to India’s GDP by 2025, according to a report by the National Association of Software and Services Companies (NASSCOM) .
AI adoption in four key sectors—Consumer Goods and Retail (CPG), Banking, Financial Services & Insurance (BFSI), Energy & Industrials, and Healthcare—can contribute 60 per cent of AI’s potential value-add of $450-500 billion to India’s GDP by 2025, according to the report “AI Adoption Index”launched by Nasscom, along with Ernst & Young, with support from Microsoft, EXL, and Capgemini.
Global investments in AI have more than doubled over the last couple of years, from $36 billion in 2020 to a high of $77 billion in 2021. Though AI investments in India has been growing at a compound annual growth rate (CAGR) of 30.8 per cent and is poised to reach $881 million by 2023, it will still represent just 2.5 per cent of total global AI investments of $340 billion.
This creates a massive opportunity for Indian enterprises to accelerate investments. India’s goal of having a $1-trillion GDP by FY2026-2027, should have a strong correlation to the maturity of AI adoption, the report noted.
Debjani Ghosh, President, Nasscom, said, “The first of its kind AI Adoption Index will not only provide organisations the necessary benchmark for AI maturity, but will also help them take key structural steps to realise AI’s potential to tangible national value.”
Companies are moving from a “no defined AI strategy” and cost consideration to testing PoCs and implementing limited use-cases. According to the study, 65 per cent of organisations have an AI strategy either at a functional or enterprise level, the report said.
Published on
June 23, 2022
