The growth is fueled by tech spending, AI talent, and increased investments.
India’s artificial intelligence market is predicted to witness a meteoric rise, reaching a staggering $17 billion by 2027, according to a joint report by IT industry body the National Association of Software and Service Companies (Nasscom) and consulting firm Boston Consulting Group (BCG). This translates to an impressive annualised growth rate of 25-35% between 2024 and 2027.
Fueling this AI boom are three key factors:
Surging Enterprise Tech Spending: Companies are increasingly investing in AI-powered solutions to optimize operations, enhance efficiency, and gain a competitive edge.
Thriving Talent Pool: India boasts a burgeoning AI talent pool, with over 420,000 individuals currently holding AI-related positions. This makes India a leader in AI skill penetration globally.
Rising Investments: Both private and public entities are pouring money into AI research and development, creating fertile ground for innovation and growth.
The report, based on a survey of over 65 tech companies, highlights the growing commitment to AI. IT giants like Wipro are spearheading the charge, pledging significant investments in AI training and startup partnerships. This trend is expected to continue, with AI talent demand projected to grow at an annualized rate of 15% until 2027.
“The future of India’s tech industry is undoubtedly intertwined with AI,” said a spokesperson for Nasscom. “This report paints a promising picture, showcasing the immense potential of AI to revolutionize various sectors and propel India’s economic growth.”
With its robust talent pool, rising investments, and increasing adoption, India’s AI market is poised to become a global powerhouse, shaping the future of technology in the years to come.
(With inputs from agencies)
