The AI adoption rate has increased drastically in the past few years. By adopting AI technologies, various industries in India are experiencing a paradigm shift and undergoing a massive transformation.
India is one of the top 10 global AI adopters.
- According to a study published by the Brookings Institution, India is one of the top 10 countries in the world when it comes to AI adoption.
- As per this study, India occupies the 7th rank as a global nation in AI adoption.
- The United States, China, the United Kingdom, France, Japan, and Germany are ahead of India in AI achievements.
- Canada, South Korea, and Italy follow India in the global list of AI adopters.
- In terms of commercial and research activities, India does not rank among the top 10 countries in the world.
- But, India occupies the sixth position in terms of spending and investments in AI technologies by individuals, private and governmental institutions, and other organizations.
What does the Brookings Institution report mention about the adoption of AI technologies in India?
The report from the Brookings Institution highlights the following:
- There has been an increasing adoption of new-gen technologies.
- From the financial and funding aspect, India is ideally positioned.
- India can achieve innovations in AI technologies faster.
- India has the potential and capability of overtaking other countries that are leading in AI achievements at present.
The retail industry in India is at the forefront of AI adoption.
A Deloitte Report titled “The State of AI in India” in December 2021 has classified AI adoption by various industries in India. This report suggests that the highest AI adoption is witnessed in the retail industry in India, followed by the telecom and fintech industries.
Did you know?
A report by NASSCOM (National Association of Software and Services Companies) expects AI adoption to add $500 billion to India’s GDP by 2025.
The AI Adoption Index in India
- The AI Adoption Index for India was launched by the IT Industry Body.
- This Index provides a detailed assessment of the AI adoption trends in four key sectors in India—Banking and Financial Services (BFSI), Consumer Packaged Goods (CPG) and Retail, Healthcare, and Industrial and Automotive.
- By 2025, these four sectors are expected to contribute roughly 60% of AI’s potential value of $500 to India’s GDP.
The McKinsey Analytics report of 2021
According to an assessment conducted by McKinsey Analytics in December 2021 on the ‘State of AI in 2021’, India was the largest adopter of AI technologies from the commercial and business perspective. It also mentioned that AI adoption was being done by industries such as software services, product development, and contact center automation globally.
The existing technological environment is not a mature one.
- The previous chapter in the Brookings paper acknowledges the fact that the existing technological ecosystem is not necessarily a mature one.
- Among the democratic countries, the ones that have an immature technical environment are more likely to focus on ethics and governance issues than those that have a mature environment.
- The Brookings Study cited that this reflects the lack of experience of these countries in handling such difficulties, resulting in them playing catch up.
- The Brookings Report made use of the example of India’s 2018 AI plan, which emphasized the need for public consent before data anonymization for AI models. This is something which countries having a mature technical environment have already surpassed.
Do you know?
Industries in India that rely on AI technologies
The following industries in India have adopted AI technologies heavily to come up with innovative solutions.
- Healthcare
- Manufacturing
- Finance
- Retail
- Education
- Ecommerce
Out of various technological advancements seen in the past decade, AI technologies have completely transformed the way we interact with the environment. The chatbots that we interact with on mobile apps or websites, Amazon’s Alexa, Apple’s Siri, and Google Assistant are all powered by AI technologies. The future of AI technologies in India is really promising and bright. Adoption of AI has the power to completely transform India’s economy. The best part about AI adoption is that it not only involves artificial intelligence but also many other technologies related to it: machine learning, speech recognition, pattern recognition, robotic process automation, deep learning, natural language processing (NLP), big data, and others. The number of AI companies offering AI solutions to businesses has increased. In today’s tech-savvy and digital world, most businesses look at AI technologies as an investment for the future, and not as an expense
