New Delhi [India], March 2 : Spending on Artificial Intelligence (AI) technologies will grow at 2.2x the rate of overall digital technology spending in the next three years, generating an India economic impact of over USD 115 billion by the end of 2027, according to a latest report by International Data Corporation (IDC).
IDC further predicts that by 2027, company executives would expect their GenAI projects to have at least a 70 per cent success rate in order to boost operational effectiveness and generate new income.
"Planned investment in all types of AI is rising at levels much faster than overall digital technology investment. Strategies at leading digital business organizations are focusing heavily on AI so much so that AI transformation and digital business are locked at the hip. Although digital transformation remains foundational to India's digital journey, AI is clearly leading the charge as a high-growth priority," Neha Gupta, senior research manager, Digital Business and AI Strategies, IDC India.
As digital transformation becomes core to the business strategy, 40 per cent of IT leaders will rise as business leaders by 2027, aligning people, operations, and business models with digital technologies, according to the Worldwide Digital Business and AI Transformation 2025 Predictions India Implications of IDC.
By the same period, the IDC report says that the organisations with an integrated digital business architecture will increase the value generated from their data by three times and cut time to outcomes by 20 per cent.
The report added that by 2027, about 55 per cent of India-based organisations will experience digital skills shortages that will cause project delays, slowing AI technology implementations into the following year.
The report further adds that by 2025, 80 per cent of enterprises will fail to treat data as a product and put in place the discipline to unlock the value of data for all stakeholders, delaying their AI-fueled business models further.
Additionally, the report adds that by 2028, 75 per cent of enterprises that establish an AI platform strategy built on a foundation of connecting processes to broader business functions will achieve enhanced value from their investments.
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