According to a report by NASSCOM, the adoption of artificial intelligence (AI) and data utilisation strategy can add $500 billion to India’s gross domestic product (GDP) by 2025.
As per the NASSCOM AI Adoption Index, the adoption of AI in four key sectors, including banking, financial services, and insurance (BFSI), consumer packaged goods (CPG) and retail, healthcare, and industrials/automotive, can contribute nearly 60 per cent of the $500 billion opportunity.
The report reveals that the rate of AI investments in India is growing at a compound annual growth rate (CAGR) of 30.8 per cent presently and is expected to reach $881 million by 2023. However, it will still represent only 2.5 per cent of the total global AI investments of $340 billion.
The report further notes that Indian enterprises have already embarked on their AI journey with rapid scaled digitalisation. 65 per cent of organisations have AI strategy defined either at a functional or enterprise level.
Additionally, India is currently the second-largest hub globally in training and hiring AI talent. According to the report, 44 per cent of businesses already have a dedicated or a cross-functional AI team structure, while 25 per cent rely fully on outsourcing as their primary source for AI talent.
As per the report, the use of AI to improve healthcare systems can potentially generate $25 billion of economic value add for India by 2025. The country needs to have a strong correlation to the maturity of AI adoption to achieve its $1 trillion GDP goal by the fiscal year 2026-2027.
