Indian companies using AI can help boost GDP: Report - Latest News

A unit increase in artificial intelligence (AI) intensity by Indian firms can result in a 2.5% increase in India's GDP in the immediate term, claims report launched by National Association of Software and Services Companies (NASSCOM) in collaboration with Google and think tank ICRIER. The research findings are from a study titled "Implications of AI on the Indian Economy." AI intensity is measured as the ratio of AI to total sales of the firm. In the absence of a direct measure of AI at the firm level, the model uses investments in software, databases and computer machinery as a proxy for AI. The results of the model find a positive and significant relation between AI using firms and growth in total factor productivity (TFP), said the organisations. However, as per the study, the current rate of growth in AI investments is unlikely to increase the levels of AI intensity adequately.