According to a report by RBSA Advisors, artificial intelligence (AI) has the potential to add nearly $90 billion to the Indian economy by 2025.

The report states that India has witnessed the highest increase in the use of AI during the pandemic at 45 per cent, as compared to other major economies (the US at 35 per cent, the UK at 23 per cent and Japan at 28 per cent).

Further, the report states that investment in AI has accelerated in India during the pandemic and the country has the potential to be a global epicentre of AI. AI startups in India attracted total funding of $836.3 million in 2020, the report stated. Despite the total number of high-value funding shrinking, the companies that received funding almost doubled in 2020 compared to 2019, the report said.

According to the findings, the IT services and technology sectors account for more than 60 per cent of the AI market, followed by banking, financial services and insurance (BFSI), engineering, and retail. Additionally, the BFSI sector has had the greatest adoption (20 per cent) due to the rising prevalence of digital banking and cashless payments in India.