Artificial intelligence (AI) is set to contribute as much as $90 billion to the Indian economy by 2025, RBSA Advisors said in a new report.
According to global valuation and transaction advisory firm, the shift in ways of working during the Covid-19 pandemic has significantly accelerated the demand for AI.
Indian organisation’s use of machine intelligence has increased by 45% while major economies like the US, the UK and Japan have seen the adoption surge by 35%, 23%, and 28%, respectively.
AI, when employed in a responsible manner, has the potential contribute to various facets of an organization, including its operations, human resources, customers, and the society at large.
In India, the BFSI (banking, financial services and insurance) sector has led the shift to AI, primarily due to increased penetration of digital banking, making up 20% of all adoption witnessed in 2020.
This was followed by Energy & Utilities and Retail segment at 15% each and Pharma and Telecom at 12% each.
The remaining 26% goes to manufacturing, logistics, technology, and other sectors.
AI startups have also become the focal point for investors, raising a total of $836.3 million in funding throughout 2020.
High value investments declined but the number of startups raising capital almost doubled as compared to the previous year, the report said.
“The Covid-19 pandemic and applications of data analytics and artificial intelligence has transformed the way businesses are run. Organisations across the globe are realising huge potentials of AI as important tools for innovation and transformation to stay relevant and competitive in the global space,” Rajeev Shah, MD and CEO of RBSA, said while commenting on the report.
“The future of Indian ecosystem is poised to witness the rapid penetration and adoption of AI and investors should make full use of this opportunity,” he added.
According to IDC, global revenues for the artificial intelligence market, including software, hardware, and services, are expected to grow 16.4% y-o-y in 2021 to $327.5 billion. By 2024, the market is expected to surpass $500 billion with total revenues reaching an impressive $554.3 billion.