Generative AI (Gen AI) has the potential to add a cumulative $1.2-1.5 trillion to India’s Gross Domestic Product over the next seven years, according to EY.
A report prepared by the global accounting/consulting firm said by fully capitalising Gen AI technology and its applications across sectors, the country can potentially add $359-438 billion in FY2029-30 alone, reflecting a 5.9% to 7.2% increase over and above baseline GDP.
Approximately 69% of the overall impact is expected to be derived from sectors such as business services (including IT, legal, consulting, outsourcing, rental of machinery and equipment, and others), financial services, education, retail, and healthcare. The expected impact encompasses improvements in employee productivity, enhanced operational efficiency, and personalised customer engagement, as per the study.
The EY study, in which over 200 C-suite executives participated, revealed some 60% of organisations acknowledged the influence of Gen AI on their businesses. However, 75% of them expressed a low to moderate level of readiness to harness the benefits of Gen AI. The two primary challenges faced by organisations currently are skills-gap (52%) and the availability of unclear use cases (47%), while only 36% organisations see data privacy as the risk of Gen AI, reported EY.
