Generative AI to Boost India’s GDP by $1.2-1.5 Trillion by FY30, EY India Report Reveals

A recent report by EY India has shed light on the substantial impact generative AI is expected to have on India’s economy. By the financial year 2030, generative AI is estimated to contribute an impressive $1.2 to $1.5 trillion to India’s GDP, marking a significant shift in the country’s economic landscape.

Generative AI encompasses technologies capable of creating text, images, and other forms of content. It’s increasingly being recognized not just as a technological advancement but as a key driver of economic growth and innovation. This AI technology holds the potential to revolutionize various sectors by enhancing creativity, automating content generation, and optimizing business processes.

Generative AI to Boost India's GDP by $1.2-1.5 Trillion by FY30, EY India Report Reveals

The EY India report includes insights from a survey of organizations, revealing that about 75% consider having a generative AI strategy crucial for business success. This overwhelming majority underscores the growing recognition of generative AI’s role in shaping future business landscapes and driving competitive advantages.

Despite the optimistic outlook, the report also highlights significant challenges in the adoption of generative AI. About 52% of respondents pointed out skill gaps and unclear use cases as major hurdles. These challenges indicate a need for enhanced training programs, a clearer understanding of potential applications, and the development of frameworks to effectively integrate generative AI into business strategies.

The report suggests that addressing these challenges will be crucial for India to fully capitalize on the economic benefits of generative AI. Policymakers and business leaders are encouraged to focus on developing skills, clarifying use cases, and creating conducive environments for the adoption of generative AI technologies.

The EY India report paints a promising picture of generative AI’s role in India’s economic future. By 2030, this technology is poised to make a substantial contribution to the country’s GDP, provided the existing challenges are effectively addressed. As India continues its journey of digital transformation, generative AI stands as a pivotal element in driving economic growth, innovation, and global competitiveness.

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