AI Spending in India To triple to USD 5 Billion by 2027: Report By CIOTechOutlook Team

AI Spending in India To triple to USD 5 Billion by 2027: Report

CIOTechOutlook Team | Wednesday, 15 May 2024, 02:44 IST

Spending on Artificial Intelligence (AI) in the nation might increase to $5 billion by 2027, according to an Intel-IDC analysis released on Tuesday. According to the estimate, companies in India will spend $1,703.8 million on artificial intelligence in 2023.

"AI spending in India is expected to increase to $5 billion with CAGR (compound annual growth rate) of 31.5 per cent between 2023 to 2027. By 2027 AI will be everywhere," Sharath Srinivasamurthy, Associate Vice President, IDC said.

He stated that AI infrastructure provisioning and accompanying software would account for the majority of $209 million in spending in 2023. It was followed by augmented customer service agents for $168.8 million, digital help for $113.1 million, augmented threat intelligence for $100.1 million, and program advisors recommendation systems for $97.1 million.

"The infrastructure provisioning will continue to be the biggest contributor in overall spent," Srinivasamurthy said.

Santhosh Viswanathan, Intel India region vice president and managing director, stated that India is ready for AI because it produces almost 20% of the world's data and is the world's third largest market. According to Viswanathan, India is the global leader in technical skill availability.

According to Gartner, global AI software investment will increase from $124 billion in 2022 to $297 billion in 2027. Gartner also predicts that the market will rise at a 19.1% compound annual growth rate over the next six years.