India: AI investments grow by 30.8% annually25. June 2022
India: AI investments grow by 30.8% annually
AI investment in India will grow at a compound annual growth rate (CAGR) of 30.8% to exceed $880 million by 2023, according to a report by Nasscom, the national association of software and services companies. The AI Adoption Index forecasts that AI and data usage could add $500 billion to India’s GDP by 2025.
India currently accounts for 1.5% of global AI investment. Nasscom predicts that this share will increase to 2.5% by 2023. Nasscom projects that four sectors – healthcare, BFSI, consumer goods and retail, and industrial/automotive – will collectively contribute 60% of the $500 billion.
Although enterprises in India still have a long way to go before reaching maturity, 65% of organizations surveyed said they have defined an AI strategy at the functional or enterprise level, Nasscom said.
The report, which surveyed 350 companies, was published in collaboration with Microsoft, Ernst & Young (EY), Microsoft, EXL and Capgemini.