A report by EY India reveals that Generative Artificial Intelligence (Gen AI) could increase India’s GDP by $1.2-1.5 trillion over the next seven years. The report, titled ‘The AIdea of India: Generative AI’s potential to accelerate India’s digital transformation,’ discusses the readiness and challenges industries face in adopting Gen AI.
By using Gen AI technology across sectors, India could gain $359-438 billion in FY2029-30 alone, a 5.9 to 7.2 percent increase over the baseline GDP. Gen AI is expected to have the most impact in business services, financial services, education, retail, and healthcare, contributing nearly 69 percent to the overall economic growth.
The benefits of Gen AI are not just theoretical; they include improved workforce productivity, increased operational efficiency, and better customer engagement.
However, the report points out a gap between recognition and readiness within organizations. While 60 percent recognize the significant impact of Gen AI on their businesses, 75 percent express a low to moderate level of readiness to utilize its benefits.
A survey involving over 200 C-suite participants identified two main challenges in the Gen AI journey: a skills-gap (cited by 52 percent of respondents) and unclear use cases (mentioned by 47 percent). Interestingly, only 36 percent of organizations see data privacy as a risk with Gen AI, indicating a potential gap in awareness and preparedness regarding the security implications of adopting advanced AI technologies.
To navigate the evolving landscape of AI-driven transformation, it’s crucial to bridge the gap between recognition and readiness. The potential of Gen AI to significantly boost India’s GDP requires concerted efforts to overcome challenges and enhance organizational preparedness.
In conclusion, the Gen AI revolution offers a transformative opportunity for India’s economic landscape. It’s not just a technological shift but a pathway to substantial economic growth, provided organizations address the challenges and embrace the potential of this revolutionary technology.
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