India’s artificial intelligence (AI) market is on track for significant growth, projected to reach a staggering $17 billion by 2027, according to a joint report by Nasscom and BCG titled ‘AI’s Role in Turbocharging the Industry’ for 2024. This impressive figure represents a compound annual growth rate (CAGR) of 25%.
The report points to several factors driving this rapid expansion. First and foremost is the increased spending on enterprise technology in India. As businesses recognize the transformative potential of AI, they are allocating more resources towards incorporating AI solutions into various aspects of their operations. This increased interest has also resulted in a surge in AI investments, with the global market experiencing a 24% CAGR since 2019 and reaching nearly $83 billion in 2023.
In India, the focus of AI investments is on digital content, data analytics, and supply chain solutions. This reflects the demand for AI-based services and solutions that go beyond traditional IT offerings. Service providers are now offering proprietary AI platforms, automation tools, and customized AI applications specific to industries like healthcare, finance, and retail.
Crucially, India is home to a substantial talent pool in the field of AI, with 420,000 employees dedicated to AI job functions – three times more than other countries. Over the past seven years, the country has seen a remarkable 14-fold increase in AI-skilled individuals. The demand for AI talent is projected to continue growing at a CAGR of 15% until 2027.
To meet this demand, companies in India are heavily investing in upskilling and reskilling their workforce in AI and related technologies. Some firms have even allocated up to $1 billion over the next three years for this purpose. The growth of AI/ML jobs has been particularly evident, with a 67% year-on-year increase in roles such as AI engineers.
As India accelerates its journey towards AI-driven innovation, key stakeholders emphasize the need for investment in AI skilling and the establishment of ethical and secure AI practices. Transparency and human oversight are also highlighted as crucial aspects of AI development.
In conclusion, India’s AI market is poised for exponential growth, fueled by increased tech spending, a thriving talent pool, and a shift towards AI-driven solutions across industries. The country’s role in global innovation is set to expand, as more companies embrace AI technologies and drive the establishment of dynamic and future-ready organizations.
FAQ section:
Q: What is the projected size of India’s AI market by 2027?
A: India’s AI market is projected to reach $17 billion by 2027.
Q: What is the compound annual growth rate (CAGR) of India’s AI market?
A: The CAGR of India’s AI market is 25%.
Q: What are the factors driving the rapid expansion of India’s AI market?
A: The increased spending on enterprise technology, recognition of AI’s potential, and surge in AI investments are the factors driving the rapid expansion.
Q: Which sectors in India are focusing their AI investments?
A: The sectors focusing their AI investments in India are digital content, data analytics, and supply chain solutions.
Q: How is India meeting the demand for AI talent?
A: India is heavily investing in upskilling and reskilling its workforce in AI and related technologies to meet the demand for AI talent.
Q: What is the current talent pool in the field of AI in India?
A: India has a talent pool of 420,000 employees dedicated to AI job functions, which is three times more than other countries.
Q: What is the projected CAGR for the demand for AI talent in India?
A: The demand for AI talent in India is projected to grow at a CAGR of 15% until 2027.
Q: How much are companies in India investing in upskilling and reskilling their workforce in AI?
A: Some companies in India have allocated up to $1 billion over the next three years for upskilling and reskilling their workforce in AI.
Q: What are the key aspects emphasized for AI development in India?
A: The key aspects emphasized for AI development in India are investment in AI skilling, establishment of ethical and secure AI practices, and the importance of transparency and human oversight.
Definitions:
– AI (Artificial Intelligence): The simulation of human intelligence in machines that are programmed to think and learn like humans.
– CAGR (Compound Annual Growth Rate): The rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year.
– Upskilling: The process of learning new skills or improving existing skills to increase effectiveness and productivity in a job or career.
– Reskilling: The process of learning new skills to change careers or adapt to changes in the job market.
Related links:
– Nasscom
– BCG
The source of the article is from the blog enp.gr