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Indian ecosystem to rapidly adopt AI



India has reported the highest increase in the use of AI at 45%, as compared to other major economies (the US at 35%, the UK at 23 % and Japan at 28 %). In fact, AI startups in India attracted total funding of $836.3 million in 2020. Also, despite the total number of high-value funding shrinking, the companies that received funding almost doubled in 2020 compared to 2019. With this we can say, the future of the Indian ecosystem is poised to witness the rapid penetration and adoption of AI and investors should make full use of this opportunity. As per a study, Artificial Intelligence & Its role in Delivering Economic Value to Indian Enterprise, investment in AI has accelerated in India during the pandemic and the country has a potential to be a global epicentre of AI. At the same time, IT services and technology sectors contribute to more than 60% of the AI market, followed by BFSI, engineering and retail. The BFSI sector has recorded the highest adoption upto 20% due to increasing penetration of digital banking and cashless payments in India, whereas the energy and utilities and retail sectors have adopted upto 15% each with a lot of untapped market opportunities for AI penetrations, followed by pharma and healthcare, telecom, manufacturing and other key sectors.



Secondly, when we go by the statistics of IDC, global revenues for the artificial intelligence market, including software, hardware, and services, are expected to grow 16.4% y-o-y in 2021 to $327.5 billion. By 2024, the market is expected to surpass $500 billion with total revenues reaching an impressive $554.3 billion. Indian organisation’s use of machine intelligence has increased by 45% while major economies like the US, the UK and Japan have seen the adoption surge by 35%, 23%, and 28%, respectively. Seeing the above figures, Artificial Intelligence (AI) has the potential to ad.