Every so often, the right mix of talent, economic opportunity and technology comes together at a critical inflection point that changes the course of history. Today, India finds itself in the center of one of these defining moments. The rapid-fire growth of artificial intelligence (AI) and generative AI is creating new opportunities for India on par with the Industrial Revolution, the birth of Silicon Valley and the rise of the cloud economy as a catalyst to economic and talent growth.
According to Indian government estimates, investment in India’s robust AI capabilities are growing at a compound annual growth rate of 30.8%, and the total Indian AI market is expected to be worth $7.8 billion by 2025. Further, A top tier audit firm estimates that generative AI (GenAI) could boost India’s total GDP by $359-$438 billion by 2030.
What is it that’s making India such a hotbed of AI innovation, and why are so many companies from around the world making investments in the region? For one, there is the talent. India currently has more than 420,000 employees who currently hold AI-related job functions and the highest AI skills penetration of any country in the world, according to A research institute’s AI Index Report.
In addition, India’s tech sector has been leading the way in developing and implementing the types of large-scale GenAI initiatives that are playing a key role in helping the world’s largest companies transform workflows and improve customer experience. We’re seeing this trend play out in virtually every industry. Across insurance, where data-driven algorithms are being developed to revolutionize actuarial risk assessment and claims adjudication; financial services, where AI is being used to assess credit risk and support real-time decisioning; and healthcare, where things like telemedicine and remote patient monitoring are transforming patient engagement, India-driven innovation is unlocking the potential of GenAI.
On top of all of that, the Indian government has also committed vast resources to fostering collaboration between the private sector and educational institutions and building AI education into the very core of its innovation agenda. Initiatives such as Responsible AI for Youth, Make AI Work for India and AI for All have introduced accessible coursework and other educational programs designed to help the country increase its lead in AI skills penetration as the field continues to grow rapidly.
India’s early lead in AI and its continued commitment to staying at the forefront of this technology revolution will help define the future of the country’s standing in the business world. What we’re seeing in our work in the space is that this space is moving so quickly and although many companies have been experimenting with AI, a select few have implemented company-wide AI initiatives that are driving truly transformative results. As the gap between those AI leaders and laggards continues to widen, we will see many start scrambling to catch up. Right now, the combination of incredible talent and robust government and private sector support for AI skills development is helping India set the pace for others to follow.
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The views, thoughts, and opinions expressed in this blog are solely those of the author. Any content provided on this blog is for informational purposes only.
