According to IDC’s insights on generative AI and GenAI-enabled delivery, the adoption of AI in India is expected to push AI spending to USD 6 billion by 2027, highlighting the significance of digital transformation for Indian service providers.
India is about to see a revolution propelled by Generative AI and Artificial Intelligence (AI) (GenAI). Indian AI adoption involves software, services, and hardware for AI-centric systems predicted to boost the nation’s AI investments to USD 6 billion by 2027, according to a recent report by International Data Corporation (IDC).
This increase results from a 33.7% compound annual growth rate (CAGR) from 2022 to 2027.
According to IDC’s prediction, AI spending is expected to reach USD 512 billion by 2027, more than doubling its size from 2024. This indicates a global trend.
These observations were made during the June 12, 2024, IDC Directions India conference, which brought together more than 160 senior executives from top IT service providers and technology vendors in India.
Reentering India after a ten-year break, the IDC Directions event this time around focused on “The Digital Business Impact of AI Everywhere,” offering a thorough analysis of the state of AI today, as well as strategic recommendations for utilizing AI to improve customer experiences, increase productivity, and create new revenue streams.
The pace at which AI is being adopted in India was highlighted by Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, who disclosed that 76% of Indian businesses are now working on GenAI proof of concept or have investment plans in place.
“This AI Moment is not a one-hit wonder,” Lai underscored. With data being its most important asset, its effects on India are far-reaching and strike at the core of the country’s cultural and business model shift.
“In his keynote speech, Dr. Christopher Marshall, vice president of data, analytics, artificial intelligence, sustainability, and industry research at IDC Asia/Pacific, discussed the revolutionary possibilities of AI.
“India is the sleeping giant in generative AI,” Marshall remarked. AI is about to change not only in India but the entire world thanks to its startups, scale, and expertise.
The event also predicted that a paradigm change in human-delivered services will occur by 2025, with 40% of service engagements integrating GenAI-enabled delivery.
This change will be essential for businesses getting ready for an AI-filled future.IDC counseled Indian service providers to continue adding value by satisfying their clients’ changing needs and assisting them on their AI journeys, in addition to concentrating on their own digital transformation.
Analysts advised service providers to challenge and lead clients by providing Chief Marketing Officers (CMOs) with more comprehensive, GenAI-fueled offerings to dominate the customer experience (CX) services market.
This strategy will be essential to guaranteeing that Indian companies continue to lead the global AI revolution.
