With a projected investment of $6 billion in Artificial Intelligence (AI) by 2027, India is poised to transform its technological landscape. The International Data Corporation (IDC) forecasts a compound annual growth rate (CAGR) of 33.7% in AI spending from 2022 to 2027. This surge reflects a global trend where AI spending is expected to surpass $512 billion by 2027, more than doubling its market size from 2024. The IDC Directions India conference recently convened over 160 senior executives from India’s top technology vendors and IT service providers to discuss the impact of AI on digital business.
Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, highlighted the momentum of AI adoption in India, noting that 76% of Indian enterprises are already engaged in GenAI proofs of concept or have investment plans in place. Lai emphasized that the implications of this AI moment go beyond a temporary trend and have far-reaching effects on culture and business models, with data emerging as the most valuable asset. Dr. Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, discussed the transformative potential of AI in India, calling it a “sleeping giant” in Generative AI.
The event also projected that by 2025, 40% of service engagements will integrate GenAI-enabled delivery, leading to a paradigm shift in human-delivered services. As AI becomes more ubiquitous, organisations must prepare for this shift by focusing on digital transformation and delivering value to clients through their AI journeys. IDC recommended Indian service providers to challenge and lead clients by offering Chief Marketing Officers (CMOs) comprehensive, GenAI-fueled services to dominate the customer experience (CX) services market. This approach will help Indian firms stay ahead in the global AI revolution.
India’s AI spending is set to reach $6 billion by 2027, with a projected CAGR of 33.7% from 2022 to 2027, according to a recent report by the International Data Corporation. This investment reflects a global trend where AI spending is expected to surpass $512 billion by 2027, more than doubling its market size from 2024. The IDC Directions India conference convened over 160 senior executives from India’s leading technology vendors and IT service providers to discuss the transformative impact of AI on digital business.
Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, highlighted the momentum of AI adoption in India, with 76% of Indian enterprises already engaged in GenAI proofs of concept or having investment plans in place. Lai emphasized that the implications of this AI moment extend beyond a temporary trend and have wide-reaching effects on culture and business models, with data emerging as the most valuable asset. Dr. Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, described India as a “sleeping giant” in Generative AI.
By 2025, 40% of service engagements are projected to integrate GenAI-enabled delivery, leading to a paradigm shift in human-delivered services as AI becomes more omnipresent. Organizations must prepare for this shift by focusing on digital transformation and delivering value to clients through their AI journeys. IDC recommended Indian service providers to offer Chief Marketing Officers (CMOs) comprehensive, GenAI-fueled services to challenge and lead clients in the customer experience (CX) services market. This approach will help Indian firms stay at the forefront of the global AI revolution.
