India will invest $6 billion in AI by 2027

AI and GenAI adoption in the country has significantly increased, including software, services, and hardware for AI-centric systems, according to the International Data Corporation (IDC).
India will invest $6 billion in AI by 2027
Gorodenkoff

According to IDC, 40% of service engagements by 2025 will integrate GenAI, which will revolutionize how services are delivered by focusing on strategy, change management, and training to get businesses ready for AI integration. The adoption of artificial intelligence (AI) and generative artificial intelligence (GenAI) in India is predicted by International Data Corporation (IDC) to change the nation's technological landscape. Investments in these areas are projected to reach $6 billion by 2027, expanding at a compound annual rate of 33.7% from 2022 to 2027. Global AI spending is expected to exceed $512 billion by 2027, according to IDC, more than tripling from 2024 levels.

At the June 12, 2024, IDC Directions India conference, these insights were presented to more than 160 senior executives representing leading technology suppliers and IT service providers in India. After a ten-year absence, IDC Directions made a return visit to India and addressed "The Digital Business Impact of AI Everywhere," including local and worldwide AI trends, predictions, and strategic guidance for utilizing AI to increase output, improve customer experiences, and generate new income streams. As IDC Asia/Pacific's Vice President of Digital Business Linus Lai noted, "This AI Moment is not a one-hit wonder." With data emerging as the most valuable asset, it has significant consequences for India, affecting changes in business models and culture.

India is the sleeping giant in generative AI, according to Dr. Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, who emphasized the country's potential. Its size, experience, and entrepreneurial culture position it to transform AI on a national and international scale. According to IDC, 40% of service engagements by 2025 will integrate GenAI, which will revolutionize how services are delivered by focusing on strategy, change management, and training to get businesses ready for AI integration. IDC advises Indian service companies to keep developing internally and to assist their clients' AI projects. Service providers should provide CMOs with all-inclusive GenAI-powered services, assisting customers with the AI transformation, in order to take the lead in the CX services market.

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