India's investment in Artificial Intelligence (AI) and Generative AI (GenAI) is projected to reach $6 billion by 2027, growing at a compound annual growth rate (CAGR) of 33.7%, according to a report by the International Data Corporation (IDC).
The adoption of AI and GenAI in India has significantly increased across software, services, and hardware for AI-centric systems, as stated by IDC.
“India is the sleeping giant in Generative AI. Its scale, skills, and startups are set to transform not just AI in India but also in the world,” said Dr Christopher Marshall, VP of data, analytics, AI, sustainability and industry research, IDC Asia/Pacific.
According to Linus Lai, VP, Digital Business, IDC Asia/Pacific, 76 per cent of Indian enterprises are already focused on GenAI proof of concepts (POCs) or already have an investment plan in place.
“This AI Moment is not a one-hit-wonder. Its implications for India are widespread and strike at the heart of culture and business model transformation with data as its most valuable asset,” Lai noted.
Global AI spending will approach $512 billion by 2027, more than doubling the market size in 2024.
According to the report, by 2025, 40% of service engagements will use GenAI-enabled delivery, causing a shift in human-delivered services for strategy, change, and training to prepare businesses for AI everywhere.
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