Introduction
India is not just riding the wave of artificial intelligence; it’s shaping its crest. With a burgeoning tech industry and a vast pool of talent, it is on its way to becoming an AI powerhouse. More than 80% of enterprises have AI in production while a staggering 94% of adopters are set to increase their use of AI automation. As we step into 2025, the momentum will accelerate, with 87% of enterprises planning to increase their annual AI spend.
Artificial intelligence across industries
AI’s pervasive influence is reshaping every facet of India’s economic and social landscape. From automating mundane tasks to driving innovation, AI is becoming a crucial catalyst for progress.
“The extent of broad AI adoption is prominent in sectors such as communication, OTT, and gaming (55%); technology (48%); and financial services (39%). Further, more than 90% of the digital native companies in CPG and retail and financial services have demonstrated AI/ML adoption.” IAMAI report
Notable uses of artificial intelligence:
- Healthcare: Set to add $25-$30 billion to India’s GDP by 2025, AI in healthcare is revolutionizing diagnostics, early detection, and hospital management, improving efficiency and patient outcomes.
- Travel: At IDS 2024, Gaurav Laghate (Senior Editor, Mint) and Aloke Bajpai (CEO, Ixigo) shared insights into online travel agencies using AI applications. AI predicts customer needs, streamlines itineraries, automates customer service, and simplifies bookings, delivering seamless customer experiences.
- Marketing and retail: eCommerce and retail got a facelift with AI-powered platforms offering a new method of engaging with customers. Conversations and payment processing can be automated, journeys can be personalized, and supply chains can be optimized with greater efficiency.
- Financial services: 90% of financial institutions in India focus on AI/GenAI for innovation. In addition to driving faster decision-making, AI is optimizing trading strategies, detecting fraud, and enhancing customer experiences.
- Education: AI-powered personalized learning and intelligent tutoring systems are enhancing learning outcomes and empowering educators with tailored recommendations based on student performance. AI also helps bridge geographical gaps, enabling educational content to be translated and adapted for different languages and cultures, making learning more accessible.
- Manufacturing: The implementation of AI technologies in Industry 4.0 is driving smart automation, predictive maintenance, and process optimization, helping Indian manufacturers increase efficiency and output.
- Agriculture: Farmers in India are using AI for optimizing crop yields, predicting weather patterns, and improving agricultural practices.
“AI has fundamentally made marketers more productive. Everything from content creation to hyper personalization, AI has cracked the scale and speed at which data can be crunched and turned into insights.”
– Russell Mascarehnas, Head of Marketing, TatvaCare at IDS 2024The future of AI in India
The AI market in India is projected to reach $8 billion by 2025. As the adoption of AI accelerates, a structured approach is vital to capitalize on its transformative power. AI future predictions highlight even greater opportunities, paving the way for shifts across industries.
Here’s what lies ahead:
Generative AI’s impact on India’s economic growth
GenAI could boost India’s GDP by $359-438 billion by 2030. Key sectors like finance, healthcare, transportation, and education are best positioned to benefit due to their focus on digitalization and productivity.
Soaring global investments
- By 2025, 40% of service engagements will feature GenAI-enabled delivery, transforming traditional service models.
- Worldwide AI spending will exceed $512 billion by 2027, doubling its 2024 levels.
As artificial intelligence in India continues to evolve, the emphasis must remain on leveraging its potential to drive efficiency, innovation, and growth across sectors while ensuring a robust framework to protect stakeholders and enable sustainable progress. A proactive regulatory stance is equally critical to balance innovation with safety and ensure AI adoption benefits all.
