With a total score of 2.45, India is classified as an "Enthusiast" on the 4-stage maturity scale of AI adoption according to a NASSCOM report. The NASSCOM research also notes that 10% of India's aim of USD 5 trillion in GDP, or USD 450–500 billion, is estimated to be added to the country's GDP by AI by 2025. The adoption of AI has been pioneered by highly digitized sectors like IT, financial services, telecommunications and media, and retail. 

Its expansion can be ascribed to a number of factors, including greater technological investment, an increase in internet usage over the past two years, and enhanced digital infrastructure. Businesses are now open to embracing digital transformation and implementing cutting-edge technology like AI, ML, cloud computing, and analytics. 

The India Artificial Intelligence Market, 2021 report from IDC reveals that both the national and state governments have intensified efforts to increase AI technology spending to deploy a variety of use cases, including automated monitoring systems, conversational AI solutions, fraud detection, and many more. According to IDC's 2021 AI Strategies Buyer View Survey, 80% of organizations already use AI in their business operations—including customer service, human resources (HR), IT automation, security, and recommendation systems—or expect to do so in the future. AI and ML are increasingly being used to revolutionize business operations; thus, it is only natural that additional investment will further encourage the development of fresher, more affordable solutions. 

Hardware, software, and services sectors make up the three segments of the Indian AI market. By 2025, overall revenues in India are anticipated to reach an astounding US$7.8 billion at a five-year compound annual growth rate (CAGR) of 20.2%. For the next five years, businesses in India will hasten the adoption of both AI-centric and AI non-centric applications. 

The market for AI software will increase from US$2.8 billion in 2020 at a CAGR of 18.1% by the end of 2025, dominating the other two categories. Organizations are using a variety of AI tools, including CRM, ERM, and others, to manage operations, extend supply chains in response to current or anticipated demand, and accomplish a number of other goals, including enhancing ROI and reducing costs. 

Government Involvement  

The National Strategy on Artificial Intelligence was published by NITI Aayog in 2018. The plan aims to promote social participation and economic prosperity while fostering discourse on matters like privacy and ethics. "Make India a worldwide leader in AI by assuring responsible and transformative AI for everybody," is the overriding objective. 
Through funding, startup support, product and solution development, and industry engagement, the strategy seeks to promote the expansion of India's AI industry. Leading academic institutions like the Indian Institutes of Technology (IITs) and IIMs are at the forefront of the nation's booming AI R&D industry. 

Increase in Patents  

Report from CSET on Assessing India's AI Potential before France and Russia, India was rated 8th among the top 10 nations by AI patent families. The United States, Japan, and China are in that order, starting with China. The electronics and healthcare industries account for the majority of patent applications. In the last three years, the sector has garnered unprecedented government financing thanks to India's national AI plan. As a result, there are now much more applications for AI patents. 

Introduction of 5G Network

Edge computing, Industrial IoT, and robots will be more widely adopted in agriculture, e-commerce, healthcare, education, and pharmaceuticals as a result of the deployment of 5G infrastructure in urban and rural areas. 
Faster digital functions, increased flexibility, better customer experiences, and simpler management of data-driven operations for businesses across disciplines are all promised by 5G. All businesses will benefit from the network effect and a myriad of new technology options that 5G will open up. 

Emergence of GCCs

India has more than 1,300 GCCs, employing almost 1.3 million people, according to a NASSCOM research. The GCCs made close to USD 33.8 billion in revenue in FY 2020.

Over 30% of GCC leaders say AI is already essential to their companies, while about 50% think it will be in a few years. The leaders believe that the quicker adoption of AI is essential to the long-term success of their companies. In the meantime, almost 37% of GCC nations think AI will revolutionize their businesses in the following three years. In India, one in five GCCs employ artificial intelligence in critical business processes like customer service, cybersecurity, operations, and supply chain. 

Risk management, an AI-enabled workforce, and strategy and implementation are all necessary for a successful AI adoption. Due to the pandemic, Indian businesses went into overdrive with digitization, which has resulted in a number of profitable endeavors. 

The World AI Show, presented by Trescon, aims to provide insight into how Indian businesses are utilizing AI. Evaluating the potential of emerging technologies by gathering some of the brightest minds in the field of AI and ML to talk about future uses and their potential in India's new normal. 

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