June 24, 2022
AI adoption in four key sectors can contribute 60% of AI’s potential value addition of $450-500 billion to India’s GDP in the next four years
AI investments in India are expected to reach US$ 881 million
Global investments in AI have more than doubled in the last two years
65% of organisations have an AI strategy either at a functional or enterprise level
The adoption of artificial intelligence (AI) and data utilisation strategies can boost India’s GDP by US$ 500 billion by 2025, according to a report titled “AI Adoption Index” by The National Association of Software and Service (NASSCOM).
As per the report, AI adoption in four key sectors—Consumer Goods and Retail (CPG), Banking, Financial Services & Insurance (BFSI), Energy & Industrials, and Healthcare—can contribute 60% of AI’s potential value addition of $450-500 billion to India’s GDP in the next four years.
India’s target of having a US$1 trillion GDP by FY27 should engage with the ongoing development of AI adoption, the report said. By 2023, AI investments in India are expected to reach US$ 881 million, expanding at a CAGR of 30.8%, which will account for 2.5% of the US$ 340 billion in total AI investments made worldwide.
Global investments in AI have more than doubled in the last two years, from US$ 36 billion in 2020 to a high of US$ 77 billion in 2021.
The report further said that companies are testing Proof of Concepts (PoCs) as well as implementing limited use-cases of AI-based technologies, and 65% of organisations have an AI strategy either at a functional or enterprise level.