Economy
Generative AI To Propel India's Economy By $1.2-1.5 Trillion In Seven Years: EY Report
Generative AI is increasingly harnessed by corporations and industry.
The unfolding Generative AI (artificial intelligence) revolution worldwide could potentially enhance India's economy by $1.2-1.5 trillion over the next seven years, according to a report by professional services firm EY.
This revolution is expected to bring about considerable disruption and innovation.
According to the report named 'The AIdea of India: Generative AI's impact on India's digital growth', the full use of Gen AI technology in various sectors could potentially add an extra $359–438 billion to India's economy in the fiscal year 2029–30.
The analysis from EY indicated that there would be a rise in GDP between 5.9 per cent and 7.2 per cent compared to the baseline.
The research suggests that approximately 69 per cent of the anticipated impact will stem from sectors like business services, financial services, education, retail, and healthcare. This is due to enhanced employee productivity, operational efficiency, and stronger customer engagement.
The EY report provided valuable insight into the readiness of various industries for the implementation of Gen AI.
A comprehensive survey involving over 200 C-suite participants revealed that 60 per cent of organisations recognise the substantial influence Gen AI will have on their business models.
However, nearly 75 per cent indicated a low to moderate level of preparedness to leverage the advantages of Gen AI.
The primary obstacles these entities are grappling with are a lack of skilled staff, as noted by 52 per cent of those surveyed, and the existence of ambiguous use cases, which 47 per cent pointed out.
Interestingly, just 36 per cent view data privacy as a potential Gen AI-related hazard, based on the study.
"Although AI is in its early stages, there is a tremendous sense of optimism, and to realise its full potential, India must significantly elevate its efforts in terms of increased government involvement in development and deployment. Moreover, providing a critical computer ecosystem for continuous innovation and growth will be vital for India to stay competitive in this evolving landscape,” said Mahesh Makhija, Technology Consulting Leader, EY India, as reported by Economic Times.
EY experts say that in line with the National Strategy for Artificial Intelligence (2018), which strives for the inclusion of all, it is crucial to make Gen AI available to everyone.
They believe this is key to realising its potential benefits in various sectors, including education, healthcare, agriculture, and smart cities, among others.
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