India is poised to harness the potential of artificial intelligence (AI) to drive economic growth and development at scale. With its vast and diverse economy, coupled with a large population, India has a unique opportunity to leverage AI to deliver benefits to businesses, industries, and society. AI expenditure has been grown steadily since 2011, and it is projected to contribute significantly to the economy by 2035. AI start-ups in India have seen high growth since 2011, and 88% of companies surveyed are planning to invest in AI-related technologies. Most recently, India placed sixth in terms of AI investments between 2013-2022, totalling USD7.73 billion over the last ten years with about 40% of that received in 2022.
Against this background, technology industry leaders have noted that AI is at an inflection point, with powerful new models like generative AI being introduced, and innovative new applications increasingly being used across society and capturing the imaginations of consumers. Generative AI has opened the door to more possibilities and is expected to play a role in tasks requiring creativity, curiosity, and looking at information differently. Therefore, the potential of generative AI lies in its ability to enable people to achieve greater creativity, effectiveness, and efficiency in their work.
This report seeks to contribute to this discussion by providing early insights and raising awareness of the economic opportunities that generative AI can create, and what it means for local industries and workforce readiness.
This study estimates that generative AI can potentially unlock USD621 billion of productive capacity in India, equivalent to close to one-fifth of GDP in 2021. India has an opportunity to better position its businesses and workers to unlock the potential of generative AI, as well as manage emerging risks. Policymakers will need to ensure that they have a clear national vision for AI, and that it focuses on preparing its workforce and establishing an enabling policy environment for AI adoption, including to answer the question “what is required to achieve the aspirations of a brighter future enabled by generative AI?”
Download The Economic Impact of Generative AI: The Future of Work in the India.
