According to a report by the International data corporation (IDC), artificial intelligence (AI) and generative AI (GenAI) adoption in India has significantly increased, including software, services, and hardware for AI-centric systems, with spending projected to reach $6 billion by 2027 and a compound annual growth rate (CAGR) of 33.7 per cent for the period 2022-2027.
The report noted that global AI spending will surpass $512 billion by 2027, more than doubling from its 2024 market size. These insights were presented to over 160 senior executives from India’s leading technology vendors and IT service providers at the directions India conference on June 12, 2024.
Commenting on the report, Linus Lai, vice president (VP), digital business, IDC Asia/Pacific said, “This AI Moment is not a one-hit-wonder. Its implications for India are widespread, influencing cultural and business model transformations, with data emerging as a crucial asset.76 per cent of Indian enterprises are already engaged in GenAI proof of concepts (POCs) or have investment plans in place.”
Meanwhile Dr Christopher Marshall, VP of data, analytics, AI, sustainability, and industry research, IDC Asia/Pacific, said, “India is the sleeping giant in GenAI. Its scale, skills, and startups are set to transform AI not just in India but globally.”
The report predicted that by 2025, 40 per cent of service engagements will incorporate GenAI-enabled delivery. This shift is expected to redefine human-delivered services, focusing on strategy, change management, and training to prepare organisations for ubiquitous AI. IDC recommended that Indian service providers should continue delivering value while supporting customers through their AI transformations. To lead in the customer experience (CX) services market, providers should offer (chief marketing officer) CMOs more comprehensive GenAI-driven services.
