The recent EY report reflects that India’s GDP might increase by a total of $1.2 to $1.5 trillion over the next seven years as a result of generative artificial intelligence (GenAI).
According to the research “AIdea of India: Generative AI’s potential to accelerate India’s digital transformation,” GenAI may boost India’s GDP by an additional $359–438 billion in 2029–2030 alone.
The report reveals the business services (including IT, legal, consulting, outsourcing, rental of machinery and equipment, and others), financial services, education, retail, and healthcare are expected to account for roughly 69% of the overall impact of GenAI on India’s GDP.
According to Mahesh Makhija, technology consulting leader at EY India, “organizations are swiftly adopting an AI-first approach to digital transformation, aiming to enhance customer engagement, increase productivity, and achieve greater agility in delivering digital capabilities using innovative foundation models and AI-first solutions.”
Even though AI is still in its infancy, he continued, “India must significantly elevate its efforts in terms of increased government role in its development and deployment to realize its full potential.”
The report stated that 75% of Indian businesses indicate that they are only somewhat prepared to use GenAI’s advantages. Whereas 52% of the organizations polled saw a skills deficit as a barrier to fully realizing GenAI’s business potential, 42% of respondents saw the availability of ambiguous use cases as an additional obstacle.
The statement read, “Gen AI innovation will be fostered by implementing measures like enabling access to training data and marketplaces, deploying GenAI systems as Public Goods, securing critical digital infrastructure and talent access, and public funding of R&D.”
Regarding data privacy, the study reveals that 36% of organizations consider data privacy to be the most significant danger associated with GenAI, with biased responses coming in at 21%, hallucinations or fake answers at 24%, and cybersecurity at 16%.
Furthermore, according to 75% of organizations, the area that generative AI has had the biggest impact on is customer engagement.
Furthermore, the report states that 73% of organizations prefer to work with outside tech companies to implement GenAI.
The enormous potential of GenAI to stimulate economic growth has prompted governments all around the world to aggressively pursue policies to advance and control AI. It stated that measures like making training data and marketplaces accessible, deploying Gen AI systems as Public Goods, safeguarding vital digital infrastructure (by deploying 5G, data centers, gaining access to specialized chips, and building AI-specific compute infrastructure), and providing talent and public funding for research and development will all contribute to the advancement of Gen AI innovation.
Additional experts in the research state that variables like viability, adoption rates, and the relative contributions of each industry sector to India’s economic activity will determine how much of an impact GenAI has in each area.
By striking a balance between risk management and innovation, a responsive regulatory environment can be produced by using a ‘light touch’ strategy. According to the paper, “building trust in the AI systems will require clarity on regulatory framework, establishing regulatory sandboxes, watermarking GenAI content, and setting standards for accountability and liability.”
200 C-suite executives from a variety of industries, including technology, media and entertainment, financial services, healthcare, retail, and manufacturing, participated in the poll.
Approximately 60% of these polled organizations said that GenAI had an effect on their operations.
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