The State Of AI In India- (Market Projections/Opportunities)

The State Of AI In India-2024

Summary

Over the last few years, AI has evolved to become a key driver of industrial revolution 4.0. India has a significant stake in the development of AI, with its potential being progressively unleashed in terms of investments, talent and growing market size.

AI adoption is no longer restricted to financial enterprises or large technology organisations. AI adoption is increasingly becoming democratised, with personnel from non-technological backgrounds adopting intelligent processes in their functional roles. For example, AI is being increasingly adopted across Contact Center Customer Services (RPA-driven Chat Bots), Media Delivery (ML and AI-driven Social Media, Streaming content, and eCommerce recommendations), and Intelligent Networks / Telecom Services, to name a few. Today, Machine Learning and AI have become central to the functioning of Smartphones, Smart TVs, Household Appliances, and Automobiles.

Talent has been a key enabler for India's contribution and progress in AI. In 2022, AIM found out that as high as 47% of professionals at the senior levels have 7+ years of work experience, indicating a maturing industry. This highly experienced pool of professionals leads cross- geographical teams and flagship AI initiatives across the globe. In addition, the Indian AI research community is a key contributor to expanding India's AI capabilities by producing one of the largest numbers of AI-relevant research.

This report presents a comprehensive overview of the State of AI in India. Along with the usual metrics like the overall size of the AI market and its projected growth rate, a key highlight in this report is the state of AI adoption across sectors in India. The report also includes the extent to which different AI capabilities and use cases have been adopted in India. Finally, the report also discusses the AI talent scenario in India, focusing on the skillset, experience and job opportunities available for AI professionals.

Indian AI Market Potential

AI-generated revenue in India stands at USD 12.3 billion in 2022.
I market size in India is expected to grow to USD 71.0 bn by 2027
Big IT or KPO/BPO service providers hold 60.0% market share of the total AI industry in India.

#1. Indian AI Market Projection

The AI market is steadily increasing in India, driven by strong IT infrastructure, a rich data economy and the large-scale investments that the government and corporates have made towards digitalisation.

In the years to come, the AI market is set to grow further, driven by the increasing use of cloud-based applications and ever-expanding benefits realised from AI-driven decision-making.

#2. Market size by type of sector

Consumer companies are increasingly adopting AI across different verticals, driven by the unleashing potential of various applications and use cases.

In the Manufacturing sector, robots are at the forefront of assembly lines to ensure proper functioning of the entire production value chain. In addition, automated image recognition systems conduct quality checks, thereby enabling precision manufacturing.

#3. Market size by company type

IT providers continue to garner the first-mover advantage in occupying the highest market share.

However, with the growth of low code and no-code platforms, increasing availability of analytics and business intelligence platforms, and a focus on building in-house capabilities, other players, like consultancy firms, GCCs, and domestic consumer firms, are likely to catch up to increase their share in the overall AI market.