The adoption of artificial intelligence is expanding at an unprecedented scale. Companies across the globe are striving to incorporate AI automation into various aspects of their operations. Intel and IDC revealed their study at the Intel AI for India conference held in New Delhi on May 14, 2023, where Mr Santhosh Viswanathan, Vice President and Managing Director of Intel, India Region, and Sharath Srinivasamurthy, Associate Vice President, IDC discussed the findings. The study shows that India is actively seeking to harness the potential of AI and holds a prominent position among the other eight markets analysed in the study.
The report analyses key markets in the Asia/Pacific region and the stages of AI maturity they have reached. To determine its AI Maturity Rating, IDC assigns significant weight to enterprise adoption and socioeconomic factors, with government policy support for AI playing a minor role. Currently, India along with Taiwan is at stage two, indicating it is at the ‘AI Practitioner’ stage with substantial room for growth. Indonesia and Malaysia are at Stage 1, or ‘AI Explorers.’ Australia, Japan, and South Korea are classified as ‘AI Innovators’ in Stage 3, while Singapore tops as an ‘AI Leader’ in Stage 4.
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Intel positioned itself as an enabler of the upcoming AI revolution by providing infrastructure support at all levels that will appeal to the frugal innovation approach of enterprises in India. Intel also aims to democratize access to AI across diverse workloads. IDC acknowledged that infrastructure investments will be critical for India to move up the AI Maturity Level.
“Amazing India reflects the massive opportunity AI unlocks for our country. With an unmatched talent pool, frugal innovation, and data at scale, India stands poised to lead the global AI revolution. India’s commitment to AI, underscored by its proactive approach, is driving transformative growth. This positions India it as a frontrunner in shaping the future of this technology. Intel recognizes this extraordinary opportunity, elevating India as a distinct geography for our business operations. We’re proud to be part of India’s journey towards AI excellence and building an Amazing India”, said Santhosh Viswanathan, Vice President and Managing Director, of India Region.
This means that the country is increasingly adopting and using AI technologies across various sectors. This is also accelerated by the hefty spending by businesses on AI. Among the various markets which were surveyed, India is projected to have the highest growth rate. It shares this spot with Taiwan. India is increasingly spending on AI. The projected Compound Annual Growth Rate (CAGR) of 31.5% from 2023, is culminating at $5.1 billion by 2027.
India majorly focuses on enhancing productivity and customer experiences through AI-driven applications. But there lies a challenge too. India is still trying to bridge the gap between AI adoption and competitiveness. We need more effective change management strategies for this.
If we speak about the AI software sector in particular, it is expected that by 2027 it will become a $2.6 billion industry. The infrastructure in itself will grow to hit $733 million.
The report also reveals that the government initiatives are also fueling this progress. It allocated $30.7 million in FY 2024-25 to establish three centres of excellence in AI, focusing on agriculture, health, and sustainable cities.
