India is projected to invest over $6 billion in generative AI (GenAI) by 2027, according to a report by the International Data Corporation (IDC). This substantial growth, at a compound annual rate of 33.7 percent from 2022 to 2027, underscores the transformative impact AI and GenAI are expected to have on India’s technological landscape.
Globally, IDC forecasts AI spending to exceed $512 billion by 2027, more than doubling from 2024. These projections were highlighted at the IDC Directions India conference on June 12, 2024, which attracted over 160 senior executives from leading technology vendors and IT service providers.
Returning to India after a decade, the conference centered on “The Digital Business Impact of AI Everywhere.” It covered global and local AI trends, forecasts, and strategic advice on utilizing AI to boost productivity, enhance customer experiences, and generate new revenue streams.
Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, emphasized the lasting impact of AI and suggested significant cultural and business model changes, with data becoming increasingly valuable.
Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, Dr. Christopher Marshall, believes India is a “sleeping giant” in GenAI and holds massive potential, both as developers and adopters who use the technology. He highlighted India’s scale, expertise, and vibrant startup ecosystem as crucial factors that could drive substantial advancements in AI domestically and internationally.
IDC anticipates that by 2025, 40 percent of service engagements will involve GenAI, fundamentally altering service delivery in areas such as strategy, change management, and training. To remain competitive, IDC recommends that Indian service providers not only continue to innovate internally but also support their clients’ AI initiatives.
Leading in the customer experience (CX) services market will require offering comprehensive GenAI-powered services, particularly to Chief Marketing Officers (CMOs), to facilitate a smooth AI transition for clients.
This significant investment in GenAI positions India to play a pivotal role in the global AI landscape, leveraging its strengths to drive technological and economic growth.
