According to a report by the International Data Corporation (IDC), India is working to boost the adoption of Artificial Intelligence (AI) across the country with investments of around 6 billion dollars by 2027. This increase, which includes software, services and hardware, represents a compound annual growth rate of 33.7% from 2022 to 2027. The aim is to transform the economy and improve the quality of life of a giant that has been asleep and is now waking up.
The same IDC report notes that global spending on AI could exceed 512 billion dollars in 2027, doubling the market size from 2024. The IDC Directions India conference, held on June 12 and attended by over 160 executives from India's leading technology and IT service providers, underscored the importance of AI for the country's future economic development.
Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, explained that 76% of Indian companies are already involved in generative AI (GenAI) proof-of-concept trials or have investment plans in place. Lai emphasized that this AI rise is not a fleeting trend, but a profound change that will impact Indian culture and business models.
Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, highlighted India's potential in the field of AI, calling it a "sleeping giant" that has the potential to be a leader not only nationally but also globally.
It was also predicted at the event that by 2025, 40% of service contracts will include GenAI-based services. IDC advised Indian service providers to focus not only on their own digital transformation, but also on meeting the evolving needs of their customers and supporting them in their AI adoption journey.
In line with these perspectives, a December article by the International Monetary Fund (IMF) notes that India is in a unique position to benefit from AI due to its large young population and growing digital infrastructure. The IMF highlights that AI can solve critical problems in sectors such as healthcare, education and agriculture, offering innovative solutions that could transform the lives of millions of Indians.
The IMF article also notes that India's digital infrastructure as well as increasing internet penetration provide fertile ground for the country to adopt AI and make a qualitative leap.
The IMF article also mentions that India is well prepared for AI adoption due to its robust public digital infrastructure and growing internet penetration. The Aadhaar digital identity system and the unified payment interface are examples of the use of technology.
In addition, the Indian government and organizations such as EkStep are launching initiatives such as the PM-Kisan chatbot, which uses AI to help farmers access government assistance, demonstrating the potential of AI to solve complex problems and improve the efficiency of services.