A report by Nasscom on Tuesday predicts that India's artificial intelligence (AI) market is poised for substantial growth, with a projected 25 percent compound annual growth rate (CAGR) leading to a market worth $17 billion by 2027. The report, conducted in collaboration with market research firm BCG, indicates a similar trajectory for AI investments in the country.
Key drivers of this growth include increasing enterprise technology spending, a burgeoning AI talent pool in India, and a significant rise in AI investments, as outlined in the report.
Debjani Ghosh, President of Nasscom, emphasized the evolution of Indian tech companies, particularly with the integration of generative AI into their portfolios, expanding beyond traditional IT and business process management to encompass AI-driven analytics, intelligent automation, and personalized customer interactions. Ghosh stressed the need for substantial investments in AI skilling, ethical AI development practices, and governance frameworks to accelerate this transformation.
India currently boasts the second-highest installed talent base globally, with 420,000 professionals employed in AI-related roles. Additionally, the country leads in skills penetration, with three times more AI-skilled talent than other nations. The report highlights India's significant progress, ranking among the top five nations globally with a remarkable 14-fold increase in AI-skilled individuals over the past seven years. With continued investments in AI, the demand for AI talent in India is expected to grow at a robust 15 percent CAGR until 2027.
Acknowledging the pivotal role of human capital in the AI journey, leading firms have committed substantial resources to upskilling and reskilling their workforce in AI and related technologies. Some organizations have earmarked up to $1 billion over the next three years for this purpose.
Rajiv Gupta, Managing Director and Senior Partner at BCG, lauded Indian companies for keeping pace with the rapid growth of AI, creating future-ready organizations with dynamic and evolving Centers of Excellence driving the AI agenda forward.
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