New Delhi, June 23 The adoption of artificial intelligence (AI) and data utilisation strategy can add $500 billion to India's GDP by 2025, a new Nasscom report showed on Thursday. The AI adoption in four key sectors -- BFSI, consumer packaged goods (CPG) and retail, healthcare, and industrials/automotive -- can contribute 60 per cent of the total $ 500 billion opportunity, according to "AI Adoption Index" Nasscom, EY and Microsoft, EXL and Capgemini. Though the current rate of AI investments in India is growing at a compound annual growth rate (CAGR) of 30.8 per cent and poised to reach $881 million by 2023, it will still represent just 2.5 per cent of the total global AI investments of $340 billion. This creates a massive opportunity for Indian enterprises to accelerate investments and adoption of AI to drive equitable growth across sectors. For India to achieve its $1 trillion GDP goal by FY 2026-2027, it needs to have a strong correlation to the maturity of AI adoption, the report noted.

The adoption of artificial intelligence (AI) and data utilisation strategy can add $500 billion to India's GDP by 2025, a new Nasscom report showed on Thursday. The AI adoption in four key sectors -- BFSI, consumer packaged goods (CPG) and retail, healthcare, and industrials/automotive -- can contribute 60 per cent of the total $ 500 billion opportunity, according to "AI Adoption Index" Nasscom, EY and Microsoft, EXL and Capgemini. Though the current rate of AI investments in India is growing at a compound annual growth rate (CAGR) of 30.8 per cent and poised to reach $881 million by 2023, it will still represent just 2.5 per cent of the total global AI investments of $340 billion. This creates a massive opportunity for Indian enterprises to accelerate investments and adoption of AI to drive equitable growth across sectors. For India to achieve its $1 trillion GDP goal by FY 2026-2027, it needs to have a strong correlation to the maturity of AI adoption, the report noted.

Artificial intelligence (AI) is swiftly moving to the mainstream and emerging as a powerful engine for many organizations, prompting them to jump on the AI bandwagon to accelerate growth, innovate, and disrupt the market. The Indian government and industry bodies are extensively focusing on building an AI ecosystem that could help the country to develop and implement cutting-edge solutions (See: New CII forum formed to help build an AI ecosystem). However, according to a recent study, Indian enterprises need to beef up their risk-management capabilities to leverage AI's potential and dodge threats that may emerge after scaling up AI deployments. The study titled, Can enterprise intelligence be created artificially?, commissioned by global consulting major EY and trade association body Nasscom, says that 60% of Indian executive leaders believe that AI will disrupt their businesses within three years. Yet, only 25% of enterprises have deployed AI solutions.

Artificial Intelligence is emerging as a strong force for enterprises to innovate and transform. The report is based on survey of 500+ CXOs across India to study the maturity of AI adoption along with key challenges faced in their enterprise AI journeys. This report is part of a joint endeavor by NASSCOM and EY to determine the pulse of Indian enterprises in evaluating and deploying AI technologies, and to assess in-depth, the implications of AI technology advancements on key focus sectors, including BFSI, Retail, Healthcare and Agriculture. It also delves into the key enablers required to fast track AI adoption and proposes a roadmap to guide enterprises in their adoption journey. Key Highlights 1. AI reality check ~60% of CXOs believe that AI will disrupt their businesses within 3 years, yet only 25% have deployed AI solutions Operational efficiency, customer experience and revenue growth are the top three reasons for implementing AI From amongst the four key focus sectors, BFSI takes the lead on AI adoption followed by Retail, Healthcare and Agriculture Enabling core operations and enhancing customer service/experience are the top functional beneficiaries of AI 2. Impediments to AI adoption Key hurdles comprise technology and data, ability to prove ROI, talent and culture and trust, regulation and ethics Business leaders report differences in their experiences with, and perceptions regarding AI adoption ~55% enterprises, that have deployed AI, believe cultural impediments and low maturity of external ecosystem are biggest challenges ~60% enterprises that have not implemented AI believe that low level of enterprise digitization is holding them back 3. Enhancing AI maturity AI maturity model aims to provide enterprises a frame of reference for their current state maturity Eight dimensions allow organizations to map themselves against three stages of maturity Roadmap for moving up the AI maturity ladder from Beginner to Advanced Understanding the “art of possible” is a crucial step for enterprises to start their AI journey 4. Making it happen Strategic planning and integrated governance act as key AI enablers, effectively leveraging data, technology and talent Over 55% of CXOs stated that they trust AI to make strategic and/or operational decisions 74% enterprises have either formal strategy or C-suite sponsorship to initiate or scale-up AI programs 88% enterprises state that their risk management frameworks require improvement

Pune: Sixty percent of Indian enterprises believe that Artificial Intelligence (AI) will disrupt their business in the next two-three years, according to a study by industry body Nasscom and consultancy EY. The study, 'Can enterprise intelligence be created artificially? A survey of Indian enterprises,' is based on a survey of over 500 CXOs across sectors like retail, BFSI, healthcare and agriculture on the maturity of AI adoption along with the key challenges faced on their AI enterprise journey. Seventy percent of Indian enterprises that deployed AI have achieved measurable results. Implementing AI will not only catalyse the innovation to stay competitive but also generate long-term value for enterprises," said Debjani Ghosh, President, Nasscom. Operational efficiency, customer experience and revenue growth are the main reasons why enterprises are turning to AI, with BFSI firms (36%) leading the way, followed by retail (25%), healthcare (20%) and agriculture (8%). "Some of the biggest impediments to the adoption of AI include the quality of data available, the level of digitisation at the enterprise and the maturity of the partner network," said Nitin Bhatt, Partner and Technology Sector Leader, EY India. Ensuring trust through explainability, accountability and ethical use are also major concerns for wider AI adoption. People and cultural issues were other big challenges, with 40% citing workforce displacement and 32% citing cultural impediments to AI adoption. However, among the firms that had gone ahead with AI adoption, 19% said workforce displacement was a challenge while 55% cited cultural factors. "Explainability is an important factor.

Given the pace and kind of digital disruption underway, businesses understand that cloud is now a prerequisite for success. A burgeoning data wave coupled with superfast computing power (where you can scale up processing power real-time via the cloud) to crunch this deluge of data makes AI/ML a very effective enterprise growth enabler. I therefore believe cloud is the foundation for most emerging technologies like AI/ML, blockchain and chatbots. Speed is an important factor that enterprises need in order to retain/grow their customer base and maintain their success trajectory. That's where AI/ML make all the difference.