According to a recent report, India's spending on AI and Generative AI (GenAI) is projected to reach $6 billion by 2027, driven by a compound annual growth rate (CAGR) of 33.7%. The report by IDC indicates a significant increase in AI and GenAI adoption across software, services, and hardware for AI-centric systems in the country.
Commenting on India's AI potential, Dr. Christopher Marshall, VP of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, stated, "India is the sleeping giant in Generative AI. Its scale, skills, and startups are set to transform not just AI in India but also in the world."
India is poised to become a global powerhouse in the realm of Artificial Intelligence (AI) and Generative AI (GenAI), with its AI spending projected to soar to an impressive USD 6 billion by 2027, according to a recent report by the International Data Corporation (IDC). This remarkable forecast reflects a compound annual growth rate (CAGR) of 33.7 percent over the period from 2022 to 2027, underscoring the country's unwavering commitment to embracing cutting-edge technologies.
The IDC's global analysis paints an even more ambitious picture, with worldwide AI spending anticipated to surpass USD 512 billion by 2027, more than doubling its market size from 2024. This surge in investment underscores the transformative potential of AI and GenAI, which are set to redefine business models, enhance customer experiences, and unlock new revenue streams across diverse industries.
Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, highlighted the momentum of AI adoption in India, revealing that a remarkable 76 percent of Indian enterprises are already engaged in GenAI proofs of concept or have established investment plans. Lai emphasized the significance of this "AI Moment," noting that its implications for India are widespread, striking at the very heart of cultural and business model transformation, with data emerging as the most valuable asset.
Dr. Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, echoed this sentiment, describing India as the "sleeping giant in Generative AI." Marshall expressed optimism, stating, "Its scale, skills, and startups are set to transform not just AI in India but also in the world."
The IDC Directions India conference, held on June 12, 2024, brought together over 160 senior executives from India's leading technology vendors and IT service providers to delve deeper into "The Digital Business Impact of AI Everywhere." The event provided an extensive analysis of the current AI landscape, future outlooks, and strategic recommendations for leveraging AI to drive productivity, enhance customer experiences, and foster new revenue streams.
One key insight from the event was the projection that by 2025, 40 percent of service engagements will integrate GenAI-enabled delivery, leading to a paradigm shift in human-delivered services. This transformation will be crucial for organizations preparing for an era where AI is ubiquitous.
IDC advised Indian service providers to not only focus on their own digital transformation but also to continue delivering value by meeting the evolving needs of their clients and supporting them through their AI journeys. Analysts recommended that service providers challenge and lead clients by offering Chief Marketing Officers (CMOs) more comprehensive, GenAI-fueled services, a strategy that will be pivotal in ensuring that Indian firms remain at the forefront of the global AI revolution.
India's AI adoption journey is poised to be a game-changer, as the country leverages its scale, skills, and innovative startups to transform the global AI landscape. With a surge in AI spending and a deep commitment to harnessing the power of GenAI, India is set to emerge as a trailblazer, redefining the future of business and technology across the world.