According to a NASSCOM report, adoption of Artificial Intelligence (AI) and Data Utilization strategy will increase its contribution to India’s Gross Domestic Product (GDP) to $500 billion by 2025.
According to a Nasscom report, these sectors will contribute 60 per cent of the $500 billion to AI adoption in four key sectors, BFSI, consumer packaged goods, health and industrial or automotive.
Investment in AI in India is growing at an annual rate of 30.8% and is expected to reach $881 million by next year. However, India’s investment in the AI sector is only 2.5 per cent of the $340 billion global investment.
Nasscom says that this has immense potential for Indian companies to invest in AI. To achieve the GDP target of $10 billion by the financial year 2026-27, India will have to make vigorous efforts towards AI adoption.
Indian companies have already embarked on the journey of AI due to rapid digitization.
According to the report, 65 percent of the companies have adopted an AI strategy. India is the biggest talent hub for AI. It is the second largest global hub for the training and deployment of AI talent.
The demand for AI professionals has also increased due to the rapid growth in AI applications, but the supply is not as fast as the talent demand has grown in the last two years.
44 percent of the country’s business has an AI team while 25 percent of the businesses rely on outsourcing for this.
The country’s healthcare market has grown three-fold from $110 billion in 2016 to $372 billion in 2022 due to the adoption of cutting-edge technologies.
The use of AI in the healthcare system has brought about an improvement in the sector and will increase the sector by $25 billion by 2025.