Artificial Intelligence (“AI”) has the potential to add around US$ 90 billion to India’s economy by 2025 which is in line with Prime Minister Narendra Modi’s vision to transform India into a hub of Artificial Intelligence (AI) R&D by promoting investments in AI technology companies and applications.
NITI Aayog, NASSCOM, Educational Institutions, Indian IT firms, and various Technology & Engineering enterprises are taking many initiatives to transform the Indian AI market. AI applications can contribute to all facets of an establishment’s ecosystem including its operations, human resources, customers, and society at large. However, the key to success is to utilise AI in a socially responsible manner where technology is seen as an enabler rather than as a threat.
Home-grown independent Transaction Advisory firm, RBSA Advisors in its latest market study titled “Artificial Intelligence & Its role in Delivering Economic Value to Indian Enterprises” says, Investment in AI has accelerated in India during the COVID-19 pandemic and the country has a potential to be a global epicenter of AI. During the global COVID-19 pandemic, India has reported the highest increase in the use of AI at 45% as compared to other major economies (the US-35%, UK-23% and Japan-28%). In fact, AI startups in India have attracted total funding of US$ 836.3 million in 2020. Also, despite the total number of high-value funding shrunk, the companies that received funding almost doubled in 2020 compared to 2019.
Rajeev Shah, M&D & CEO of RBSA Advisors said, “The COVID-19 pandemic and applications of data analytics and artificial intelligence has transformed the way businesses are run. Organiastions across the globe are realizing huge potentials of AI as important tools for innovation and transformation to stay relevant and competitive in the global space. The future of Indian ecosystem is poised to witness the rapid penetration and adoption of AI and investors should make full use of this opportunity.”
Key Highlights of the Report
· In India, AI start-ups have attracted total funding of US$ 836.3 million in 2020
· IT services and Technology sectors contribute to more than 60% of the AI Market followed by BFSI, Engineering and Retail
· BFSI sector records highest adoption (~20%) due to increasing penetration of digital banking and cashless payments in India
· Energy & Utilities and Retail sectors report adoption of ~15% each with lot of untapped market opportunities for AI penetration followed by Pharma & Healthcare, Telecom, Manufacturing, and other sectors.
