A study by a leading analyst firm highlights the rapid expansion of India’s artificial intelligence (AI) sector, driven by growing talent and investment in the AI ecosystem. The AI software market is expected to reach $2.6 billion by 2027.
Spending on AI infrastructure is expected to reach $733 million by 2027, putting India at the forefront of AI adoption. The country benefits from strong support systems, including a large startup ecosystem and a large talent pool. The IDC study identifies India as an AI practitioner, indicating its progress on the AI maturity scale.
The company focuses on AI applications for productivity and customer experience
Indian companies recognize the transformative potential of AI, and their AI spending is expected to see the fastest growth among the markets studied. The focus is on improving employee productivity and improving customer experience through AI-based applications. However, despite widespread adoption of AI/ML technologies in large organizations, only 6% view AI adoption as critical to their competitiveness, highlighting deployment and change management challenges .
Read also : Nothing will add “ChatGPT power” to all headphones, including CMF headphones. Here’s what users can do
India’s path to global leadership in AI
India is poised to become a global leader in AI, with AI spending expected to grow at a compound annual growth rate (CAGR) of 31.5% from 2023, reaching $5.1 billion of dollars by 2027. With 20% of the world’s data and AI talent, India’s strong developer community and skills penetration are expected to position it ahead of the United States in AI leadership.
Investments in AI infrastructure in 2024 and 2025 will support high-value use cases with significant future impacts. Key sectors driving AI spending include banking, financial services and insurance (BFSI) and manufacturing, particularly electronics and consumer goods, which are crucial to the country’s economic growth. India.
India’s performance in the government dimension exceeds the Asia/Pacific average thanks to the current government’s AI-friendly policies. Significant allocations in FY 2024-25 aim to establish three AI centers of excellence focused on agriculture, health and sustainable cities.
Read also : Android will support scam call detection through Gemini Nano – Find out how it will protect smartphone users
The findings were presented Tuesday at the AI for India conference, where industry leaders discussed the study’s implications for AI development in India.
“Amazing India reflects the enormous opportunity that AI opens up for our country. With an unmatched talent pool, frugal innovation and data at scale, India is poised to lead the global AI revolution. India’s commitment to AI, highlighted by its proactive approach, is a driver of growth. This positions India as a leader in shaping the future of this technology. extraordinary opportunity, elevating India as a distinct geography for our business operations. We are proud to be part of India’s journey towards AI excellence and building an incredible India,” said Santhosh Viswanathan. , vice president and general manager of the India region.
