India’s AI Spending to Reach $6 Billion by 2027, Says IDC Report
India’s AI adoption, including software, services, and hardware for AI-centric systems, is expected to drive the country’s AI spending to USD 6 billion by 2027, according to a recent report by the International Data Corporation (IDC). This growth represents a compound annual growth rate (CAGR) of 33.7% from 2022 to 2027.
The IDC Directions India conference, held on June 12, 2024, brought together over 160 senior executives from India’s top technology vendors and IT service providers. The event focused on the theme ‘The Digital Business Impact of AI Everywhere,’ offering insights into the current AI landscape and future trends.
Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, highlighted that 76% of Indian enterprises are already involved in Generative AI (GenAI) projects or have investment plans. He stated, ‘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.’
Dr. Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, emphasized India’s potential in GenAI, noting, ‘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.’
The event also predicted that by 2025, 40% of service engagements will incorporate GenAI-enabled delivery, leading to significant changes in human-delivered services. IDC advised Indian service providers to focus on their digital transformation and continue delivering value by meeting the evolving needs of their clients.
To lead in the customer experience (CX) services market, analysts recommended that service providers offer Chief Marketing Officers (CMOs) more comprehensive, GenAI-driven services. This approach will be crucial for Indian firms to stay at the forefront of the global AI revolution.
