Indian AI Market to Skyrocket to Almost $6 Billion by 2027
The recent IDC Playbook Tech Marketing Leaders: Maximizing Business Potential through Generative AI — Leveraging Generative AI for Maximum Impact highlights the significant impact of Generative AI (GenAI) on Indian enterprises, as well as its implications specifically for technology marketing leaders. The Indian AI market is poised for exponential growth, projected to surpass USD 5.9 billion by 2027, driven by a robust compound annual growth rate of 33.7% over five years.
The GenAI solutions market is experiencing a surge, presenting numerous opportunities for vendors, particularly in productivity-related use cases such as report summarization, job description generation, and code creation. The market is expected to evolve, initially focusing on business function use cases, where AI models are integrated with enterprise data for specific functions like marketing, sales, service, and procurement. Eventually, enterprises will leverage GenAI for industry-specific use cases that require extensive customization to address unique industry processes or activities.
Despite the growing excitement around the potential of GenAI for enterprises, there is also considerable confusion regarding business-relevant GenAI use cases and how they fit with traditional AI. According to IDC’s Digital Business Survey 2023, India, n = 305, the top barrier in India in using GenAI is that organizations face the challenge of accuracy and confabulation, data security and privacy, increase in bias, copyright/IP infringement, and misuse. For the successful adoption of GenAI, a combination of data, technology, processes, and people is essential.
“Digital transformation is just the beginning—true value comes from moving towards an innovative state. Generative AI is poised to revolutionize Indian enterprises and drive significant growth in the AI market,” says Neha Gupta, Senior Research Manager, Software and IT Services market, IDC India.
“GenAI is a game-changer that will transform business productivity, enhance human-augmented capabilities, and create new revenue streams. To capitalize on this, companies need a flexible and adaptable business strategy that integrates AI and GenAI within a comprehensive, forward-looking, and responsible framework,” Gupta adds.
