Intel and IDC have released a joint report assessing the maturity of artificial intelligence (AI) in eight markets, including India. The report found that AI spending in India is expected to grow fastest among the markets surveyed, reaching $5.1 billion by 2027, at a compound annual growth rate (CAGR) of 31.5 percent from 2023. He emphasized that.
This comprehensive assessment, including corporate, government, and socio-economic aspects, provides valuable insights into the AI landscape in India and the trajectory of the global AI revolution. According to the report, India is at a certain stage in terms of overall AI maturity, along with countries such as Australia, Indonesia, Japan, South Korea, Malaysia, Singapore, and Taiwan.
Despite the focus and growth in leveraging AI, India and Taiwan are currently classified as AI Practitioners (Stage 2) according to IDC research. “Stage 2 is characterized by tactical AI and innovation efforts defined by reactive interventions with technology, data, processes, and people to achieve short-term goals. There have been success stories of this, but not on a large scale,” the report said.
However, when it comes to other countries, Indonesia and Malaysia are in Stage 1 (AI Explorer), Australia, Japan and South Korea are in Stage 3 (AI Innovator) and finally Singapore is in Stage 4 (AI Leader).
Introduction of AI and the role of government
India's strategic position as a global AI leader is strengthened by a strong developer community and skills penetration, on pace to outpace even the United States. Home to around 20% of the world's data and AI talent, India is at the forefront of AI innovation.
AI investments in 2024 and 2025 will prioritize the development of AI infrastructure and lay the foundation for high-value use cases that promise transformative impact in the future. According to the report, the BFSI (banking, financial services and insurance) sector and the manufacturing sector have emerged as the highest spending sectors in India. The manufacturing industry is expected to play a vital role in driving the country's economic expansion, especially in areas such as electronics and consumer goods.
India far outperforms the Asia-Pacific average in the government sector, driven by the current government's pro-AI stance. Approximately $30.7 million will be allocated in fiscal year 2024-25 to establish his three centers of excellence in AI focused on agriculture, health, and sustainable cities. These initiatives aim to address distinct needs within these industries and develop innovative AI solutions.
The report also notes that key initiatives such as the National AI Strategy, Making AI Work in India, and the INDIAai Portal will stimulate research and development and accelerate AI adoption in critical sectors such as healthcare, education, agriculture, and manufacturing. He also emphasized what he was doing. The government is also working to provide AI training programs and foster an ecosystem to support AI startups through national and state-level funding mechanisms.
Challenges and opportunities
Despite a promising growth trajectory, challenges in AI adoption remain. Only 6% of organizations surveyed believe AI implementation is central to competitiveness, highlighting the need to address issues such as infrastructure development, regulatory compliance, and change management. Masu.
The report also noted that India's large population and relatively low GDP per capita means that per capita investment in AI is low, at just $4.77 per $1,000 of GDP from 2019 to 2023. By comparison, Singapore invested her $15.01. This is an important aspect of India's socio-economic position and highlights the need for further investment to increase national AI maturity. Additionally, much of India's AI talent is leaving for countries with higher wages, hindering future AI progress.
However, with strong government support, a vast talent base, and many companies actively adopting AI, India is believed to be poised to reap significant benefits. Santosh Viswanathan, vice president and managing director, India, told News18 that AI is becoming as essential as the internet for businesses around the world. Just as every business relies on the internet today, AI is poised to have a similar impact and impact every sector.
Viswanathan said: “We will be one of the places where AI can be deployed anywhere… In India, the potential for AI deployment is particularly promising due to the country’s extensive digitalisation. Digital infrastructure provides a solid foundation for large-scale AI implementation, and India has an opportunity to leverage its vast data resources to drive innovation and improve lives.”
He further said that Intel is working to democratize access to AI across India, with the goal of enabling organizations of all sizes to effectively leverage AI, ultimately improving customer experiences and advancing society. The aim is to promote the
