Studies point out Indian AI market set for fast progress, anticipated to achieve $17-20 billion by 2027

Regardless of the Indian AI market being at a nascent stage, it’s anticipated to reflect the worldwide AI market progress charge of 25-35 per cent CAGR over the subsequent three-four years, and attain almost $17-20 billion by 2027, reviews point out. Alongside, AI integration is claimed to spice up the nation’s GDP by $500 billion by 2025.

The Nasscom 2024 AI Adoption Index 2.0, launched in partnership with EY, surveyed 500 corporations throughout seven main sectors in India. The report famous that the worldwide AI market, presently at $110-130 billion, is projected to achieve $320-380 billion by 2027. The AI market in India, which stands at $7-10 billion, will expertise related progress.

A lion’s share of this world market progress might be attributed to AI software program and companies, and Generative AI (GenAI). The share of AI companies and software program within the world AI market by 2027 might be 66 per cent, up from 58 per cent in 2023.

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{Hardware} market

The {hardware} market is anticipated to double, however represent a smaller portion of the AI market in 2027. Knowledge & analytics and GenAI will turn out to be dominant themes, with the latter comprising 33 per cent of the anticipated AI market in 2027, up from 13 per cent in 2023.

A Deloitte India-Nasscom report titled “Advancing India’s AI Abilities: Interventions and programmes wanted” famous that the worldwide AI market, comprising AI companies and merchandise, reached $120 billion in 2023, with AI companies accounting for twenty-four per cent at round $29 billion.

“If Indian know-how gamers seize an analogous market share for AI companies as for conventional companies, the place India accounts for about 20 per cent of the worldwide companies market, the estimated market potential for AI companies can be $24-25 billion by 2027, even with delayed progress of some years in contrast with world friends,” the report learn.

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Teamlease report

A Teamlease Digital report titled “Digital Abilities and Wage Primer” stated AI integration is more likely to increase India’s GDP by $500 billion by subsequent 12 months. Alongside, IT companies and merchandise corporations will account for 8 per cent of India’s GDP by 2026, with the IT trade aiming to hit $350 billion in income.

Sangeeta Gupta, Sr Vice-President and Chief Technique Officer at Nasscom, stated, “As AI evolves from an rising know-how to a basic pillar of enterprise technique, Indian enterprises have a novel alternative to steer this transformation.”

Regardless of a slowdown in tech spending, AI budgets stay robust, with 40 per cent of corporations having devoted AI funds and 64 per cent allocating a minimum of 5 per cent of their tech funds to AI. Nevertheless, regardless of India being a serious expertise hub for AI, enterprises wrestle to seek out domain-specific and strategic AI experience, typically beginning with “AI-as-a-service” fashions. To spice up AI adoption, Indian corporations want “right-sized” working fashions, combining inner and exterior expertise, constant management oversight, and AI Centres of Excellence (CoEs) to scale AI initiatives, the Nasscom-EY report famous.