India plans $6 billion investment in GenAI by 2027
What's the story
India is tipped to invest over $6 billion in generative AI (GenAI) by 2027, as per a report from the International Data Corporation (IDC). The report forecasts a compound annual growth rate of around 33.7% from 2022 to 2027. Globally, AI spending is expected to surpass the $512 billion figure by 2027, more than doubling the amount in 2024.
Conference insights
IDC conference highlights AI's transformative impact
The IDC Directions India conference, held on June 12, 2024, attracted more than 160 senior executives from leading technology vendors, and IT service providers. The theme was "The Digital Business Impact of AI Everywhere," focusing on global and local AI trends. Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, stated that the implications of AI for India are profound and will influence cultural and business model transformations.
GenAI potential
India poised to revolutionize global GenAI landscape
Dr. Chris Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, identified India as a "sleeping giant" in generative AI. He highlighted the country's scale, expertise, and start-up ecosystem as key factors that could revolutionize AI locally as well as globally. By 2025, IDC predicts that 40% of service engagements will involve GenAI, thus altering service delivery in change management, strategy, and training sectors.
CX services
GenAI to drive customer experience services market
To stay competitive, IDC advises Indian service providers to continue innovating and supporting their clients' AI projects. Leading the customer experience (CX) services market, will necessitate offering comprehensive GenAI-powered services, especially to Chief Marketing Officers (CMOs). This huge investment in GenAI, positions India to play a crucial role in the global AI landscape, leveraging its strengths for technological and economic growth.