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India's AI adoption, encompassing software, services, and hardware for AI-centric systems, is expected to propel the country's AI spending to an impressive USD 6 billion by 2027, according to a recent report by the International Data Corporation (IDC).
This surge reflects a compound annual growth rate (CAGR) of 33.7 per cent over the period from 2022 to 2027. India is set to witness a transformation driven by Artificial Intelligence (AI) and Generative AI (GenAI). The IDC's forecast highlights a global trend where AI spending is anticipated to surpass USD 512 billion by 2027, more than doubling its market size from 2024. These insights were shared at the IDC Directions India conference, which convened over 160 senior executives from India's leading technology vendors and IT service providers on June 12, 2024. Returning to India after a decade-long hiatus, the IDC Directions event focused on "The Digital Business Impact of AI Everywhere," providing an extensive analysis of the current AI landscape, future outlooks, and strategic recommendations for leveraging AI to drive productivity, enhance customer experiences, and foster new revenue streams. Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, underscored the momentum of AI adoption in India, revealing that 76 per cent of Indian enterprises are already engaged in GenAI proofs of concept or have established investment plans. Lai emphasized, "This AI Moment is not a one-hit-wonder. Its implications for India are widespread and strikes at the heart of culture and business model transformation with data as its most valuable asset." Dr Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, addressed the transformative potential of AI in his keynote. Marshall noted, "India is the sleeping giant in Generative AI. Its scale, skills, and startups are set to transform not just AI in India but also in the world." The event also projected that by 2025, 40 per cent of service engagements will integrate GenAI-enabled delivery, leading to a paradigm shift in human-delivered services. This shift will be crucial for organizations preparing for an era where AI is ubiquitous. IDC advised Indian service providers to not only focus on their own digital transformation but also to continue delivering value by meeting the evolving needs of their clients and supporting them through their AI journeys. To dominate the customer experience (CX) services market, analysts recommended that service providers should challenge and lead clients by offering Chief Marketing Officers (CMOs) more comprehensive, GenAI-fueled services. This approach will be pivotal in ensuring that Indian firms remain at the forefront of the global AI revolution. (ANI)
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