In an era marked by rapid technological evolution, Indian corporations are making significant strides in integrating Artificial Intelligence (AI) into their operations, eyeing innovation and efficiency gains as critical drivers for their future growth. The integration of AI across various sectors is not just a trend but a strategic move to bolster India’s position on the global tech stage.
A recent report by EY suggests that generative AI could add a whopping US$1.2-1.5 trillion to India’s GDP by the fiscal year 2029-30, with significant contributions expected from sectors like IT, legal, consulting, retail, and healthcare. This growth is anticipated to be fuelled by improvements in employee productivity, operational efficiency, and customer engagement. However, despite the potential, the readiness among companies to harness the benefits of generative AI is moderate, with challenges such as skills gaps and unclear use cases posing significant barriers.
The Indian government’s role has been pivotal, with IT Minister Rajeev Chandrasekhar emphasizing the next wave of innovation emerging from semiconductors and AI. This vision is supported by platforms like the ‘Investor Information and Analytics Platform’ developed by IIT Madras, aimed at enhancing visibility into the innovation ecosystem.
Furthermore, industry giants are not holding back in their AI pursuits. Microsoft CEO Satya Nadella, during his visit to India, underscored the transformative potential of AI in fostering inclusive growth and development across various sectors. Microsoft has announced initiatives to skill 2 million people in India by 2025, aiming to bridge the skills gap and accelerate India’s transformation into an AI-first nation.
McKinsey & Company highlights the importance of a strategic approach towards integrating gen AI, emphasizing skills beyond coding, such as design, contextual understanding, and collaboration. This reflects a broader industry trend towards creating a more inclusive and comprehensive AI skill set among professionals.
Practical applications of AI in Indian companies are increasingly evident. From Axis Bank and Infosys to smaller startups, AI is being used to drive productivity, enhance customer service, and streamline operations. These developments indicate a significant shift towards an AI-empowered business landscape, with companies achieving tangible benefits from their AI investments.
India Inc is at the cusp of an AI revolution, with heavyweights across industries leveraging the technology to drive innovation and efficiency. Despite the challenges, the concerted efforts by the government, corporate sector, and educational institutions are setting the stage for a transformative journey towards an AI-driven future.
