India’s techade hinges on world-leading AI adoption
Global Artificial Intelligence (AI) investments more than doubled between 2020 and 2021, to a high of $77 billion in 2021, from $36 billion in 2020. While the scope of AI-driven opportunities is discussed widely, it is equally important to focus on India’s preparedness in converting AI’s potential to tangible national value.
A General purpose technology (GPT), AI packs transformational impact for India due to a rich and diverse data economy. Large-scale investments funneled into making the country digital-ready over the past decade have strengthened India’s ability to address societal and environmental problems and drive equitable growth.
How is the EY NASSCOM AI Adoption Index different?
The EY NASSCOM AI Adoption Index aims at introducing an AI maturity assessment for end-user enterprises, starting with four core sectors, and potentially working up the sectoral diversity and comprehensiveness of the index in its future versions to reflect India’s advances in this space.
There is a strong correlation between India’s ambitious trillion-dollar digital economy and $5 trillion GDP goals by FY2026-27 and maturity of AI adoption. There is a positive and significant correlation between usage of AI and the growth of Total factor productivity (TFP).
- In line with the India’s AI maturity score, a majority of the organizations showcase the following characteristics across key AI parameters:
AI Strategy: Function Level - AI Budget: Ad-hoc or basic
- Talent Strategy: Gig model, with a shift towards developing inhouse AI talent
- AI Project Management Strategy: Designing/Partially implemented
- Data Readiness: Transitioning to standardized data
- Technology Stack: Modernized
- Audit and Control: Well documented frameworks
A look at few key insights of the study
Strategy and impact: A majority of Indian organizations are transitioning towards the middle stage of maturity with defined AI strategy and implementation of limited use-cases with a vision to scale up these solutions.