December 18, 2023
69% of the anticipated impact will stem from sectors such as business services, financial services, education, retail, and healthcare
Improved employee productivity, operational efficiency, and more robust customer engagement are cited as key contributors
60% of surveyed organisations acknowledge the significant influence of Gen AI on their business models
Experts emphasise the swift adoption of an AI-first approach by organisations for digital transformation
Generative AI has the potential to bolster India’s economy by US$ 1.2-1.5 trillion over the next seven years, ushering in the Gen AI revolution with substantial disruptions and innovations, states an EY report titled ‘The AIdea of India: Generative AI’s impact on India’s digital growth.’
According to the analysis, India could contribute an additional US$ 359–438 billion to its economy in the fiscal year 2029–30 if Gen AI technology is fully harnessed across various sectors, resulting in a 5.9%–7.2% increase in GDP compared to the baseline.
The report identifies that 69% of the anticipated impact will stem from business services, financial services, education, retail, and healthcare sectors. Improved employee productivity, operational efficiency, and more robust customer engagement are key contributors to this impact.
Insights from the report reveal that 60% of surveyed organisations acknowledge the significant influence of Gen AI on their business models. However, approximately 75% express a low to moderate level of readiness to harness the benefits of Gen AI. The primary challenges identified include a shortage of skilled personnel (reported by 52% of respondents) and unclear use cases (cited by 47%). Surprisingly, only 36% of organisations consider data privacy a potential risk associated with Gen AI.
Experts emphasise organisations’ swift adoption of an AI-first approach for digital transformation. They highlight the need for increased government involvement in development and deployment, creating a critical computer ecosystem to ensure India stays competitive in this evolving landscape.
EY’s experts underscore the importance of making Gen AI accessible to everyone, aligning with the National Strategy for Artificial Intelligence (2018) to include everyone and unlock benefits in education, healthcare, farming, smart cities, and more.
Source: Economic Times