According to a report by EY, generative artificial intelligence (GenAI) has the potential to add a cumulative $1.2-1.5 trillion to India’s GDP over the next seven years. The report noted that in 2029-30 alone, GenAI has the potential to contribute an additional $359-438 billion to India’s GDP.
As per the report, around 69 per cent of the overall impact of GenAI on India’s GDP is expected to be derived from sectors such as business services (including information technology (IT), legal, consulting, outsourcing, rental of machinery and equipment, and others), financial services, education, retail, and healthcare. The report highlighted that around 75 per cent of the businesses in India express a low to moderate level of readiness to harness the benefits of GenAI.
While 52 per cent organisations surveyed believe skills-gap as a challenge in harnessing the potential of GenAI for businesses, around 42 per cent of respondents found the availability of unclear use cases as another hurdle.
On the data privacy front, the report noted that 36 per cent organisations see data privacy as the single most important risk of GenAI, followed by hallucination or fabricated answers (24 per cent), biased responses (21 per cent) and cybersecurity (16 per cent). In addition, 75 per cent of organisations said customer engagement was a segment that was most influenced by GenAI.
Furthermore, the report added that 73 per cent organisations prefer partnering with external tech providers for GenAI implementation.
