Unlocking India's AI Potential: $5 Billion AI Spending by 2027

Unlocking India’s AI Potential: $5 Billion AI Spending by 2027

In a recent report released by Intel and IDC, it has been predicted that spending on Artificial Intelligence (AI) in India could triple to reach a staggering $5 billion by the year 2027. This projection indicates significant growth potential for the country in the field of AI. The report also highlights that India has already made significant strides in AI spending, with entities in the country having spent $1,703.8 million on AI in 2023.

According to Sharath Srinivasamurthy, Associate Vice President at IDC, “AI spending in India is expected to increase to $5 billion with a compound annual growth rate (CAGR) of 31.5 percent between 2023 to 2027. By 2027, AI will be everywhere.” This prediction demonstrates the increasing importance and integration of AI technologies across various industries in India.

Breaking down the spending in 2023, the report reveals that the majority of the spending, $209 million, was allocated towards AI infrastructure provisioning and related software. This was followed by investments in augmented customer service agents ($168.8 million), digital assistance ($113.1 million), augmented threat intelligence ($100.1 million), and program advisors recommendation systems ($97.1 million). Srinivasamurthy also noted that infrastructure provisioning will continue to be the biggest contributor to overall AI spending.

Santhosh Viswanathan, Vice President and Managing Director at Intel India, affirmed India’s readiness for AI adoption. He emphasized that India produces approximately 20 percent of the world’s data and is the third largest global market. Viswanathan further added that India excels in terms of technical skill availability, which positions the country as a leader in the global AI landscape.

This report sheds light on India’s growing AI potential and highlights the country’s robust capabilities in this field. With increased AI spending projected for the coming years, India is poised to unlock new opportunities and make significant advancements in AI research, development, and implementation. As AI becomes increasingly integrated into various sectors, India has the potential to become a global leader in the AI industry.

Through enhancing its technical skill availability and capitalizing on its vast data resources, India can harness the power of AI to drive innovation, solve complex problems, and improve various aspects of society. The projected $5 billion AI spending by 2027 marks an exciting milestone for India’s AI journey and sets the stage for a transformative future.

In the words of Sharath Srinivasamurthy, “By 2027 AI will be everywhere.” With India’s position as a pivotal player in the AI landscape, this bold statement seems well within reach. As the country continues to invest in AI and further develop its capabilities, it is only a matter of time before we witness the far-reaching impact of AI across all industries and sectors in India—ushering in a new era of innovation and progress.

Note: This article is purely for educational purposes and does not contain updated information since today’s date is May 14, 2024.