India’s artificial intelligence (AI) sector is poised for remarkable growth, with projections indicating a substantial surge to a staggering $17 billion by 2027, as revealed in a joint report by IT industry body Nasscom and consulting firm BCG. The study, slated for release on Wednesday, anticipates an annualized growth rate ranging between 25-35 percent from 2024 to 2027, underlining the nation’s burgeoning position in the global AI landscape.
This optimistic outlook is attributed to several key factors, notably an upswing in enterprise technology spending, the expansion of India’s AI talent pool, and an increase in investments dedicated to AI initiatives. The collaborative statement from Nasscom and BCG points to the synergistic impact of these factors on the accelerated growth of India’s AI market.
The report highlights that India currently boasts more than 420,000 professionals holding positions in AI-related roles, positioning the country with the highest skills penetration in the AI domain. This underscores the depth and breadth of India’s talent pool in the AI sector, contributing significantly to the nation’s prowess in this rapidly evolving field.
The study, conducted through a survey encompassing over 65 respondents from larger-tech and mid-tech companies, business process management entities, and global capability centers, provides valuable insights into the prevailing trends and dynamics of AI-powered technology in India. The comprehensive nature of the survey enhances the credibility and relevance of the report’s findings.
Against the backdrop of heightened interest and investments in AI, Indian IT companies have earmarked substantial budgets for employee training, startup investments, and expanding capabilities in this transformative technology. Last year, Wipro, a prominent player in the industry, made a significant announcement, pledging a substantial $1 billion investment in AI over a three-year period, signaling a strategic commitment to stay at the forefront of AI innovation.
The report also underscores a crucial aspect of this growth trajectory – the escalating demand for AI talent in India. Projections indicate a robust annualized growth rate of 15% in AI talent demand until 2027, reflecting the industry’s voracious appetite for skilled professionals in this domain. Notably, the report highlights that 90% of the top 25 technology service providers have made substantial commitments to large-scale skilling programs in General AI (Gen AI), emphasizing the industry’s proactive stance in nurturing and developing the requisite talent pool.
In essence, as India continues to solidify its position as a global AI hub, the report paints a compelling picture of sustained growth, driven by strategic investments, a robust talent ecosystem, and a collective commitment to harness the transformative power of artificial intelligence.