Generative AI could boost India's GDP by $1.5 trillion in 7 years, reveals EY India report

However, the report also sheds light on the challenges faced by organisations in fully embracing Gen AI. Findings from a survey involving over 200 C-suite participants reveal that while 60% of organisations acknowledge Gen AI's significant influence, 75% express a low-to-moderate level of readiness to harness its benefits. Key challenges identified include a skills gap (52%), unclear use cases (47%), and only 36% recognising data privacy as a risk.

Mahesh Makhija, Technology Consulting Leader, EY India, commented on the findings, stating, “Organisations are swiftly adopting an AI-first approach to digital transformation, aiming to enhance customer engagement, increase productivity, and achieve greater agility. Although in early stages, there is a tremendous sense of optimism in AI."

The report highlights the urgency of developing a Gen AI strategy, with 75% of organisations identifying customer engagement as the most crucial aspect influenced by Gen AI. Additionally, 73% prefer collaboration with external tech providers for its implementation.

Governments worldwide are recognising Gen AI as an economic growth catalyst and are actively pursuing measures to promote and regulate AI. The report suggests strategies such as enabling access to training data and marketplaces, deploying Gen AI systems as public goods, securing critical digital infrastructure, and facilitating access to talent and public funding for R&D.

In pursuit of an inclusive approach, the report advocates for developing Gen AI systems as a 'Public Good,' aligning with the National Strategy for Artificial Intelligence (2018). This approach aims to ensure that the impact of Gen AI extends across sectors, including education, healthcare, agriculture, smart cities, and more. Recommendations include providing access to data and marketplaces, securing digital infrastructure, and facilitating talent access and public funding for R&D.

While the positive impact of Gen AI is anticipated across industries, the level of influence in each segment will depend on factors such as feasibility, adoption rates, and the segment's contribution to India’s economic activity, according to EY experts.