AI can add $500 bn to GDP by 2025: Nasscom

June 24, 2022 12:00 am | Updated 05:41 am IST - Bengaluru

Investments may touch $881 mn by ’23

Nasscom has introduced “AI Adoption Index”in a bid to assess trends of AI adoption in India.

The index was the first detailed assessment of AI adoption, beginning with four key sectors of banking, financial services and insurance (BFSI), consumer packaged goods (CPG), retail, healthcare and industrials and automotive.

These sectors could cumulatively contribute more than 60% of AI’s potential value-add of $450 to $500 billion to the country’sGDP by 2025, said Nasscom in a media conference.

The apex body said global investments in AI had more than doubled over the last couple of years, from $36 billion in 2020 to a high of $77 billion in 2021.

Though AI investments in India were growing at a CAGR of 30.8% and poised to touch $881 million by 2023, it would still represent just 2.5% of the total global AI investments of $340 billion. This would mean a massive opportunity for Indian enterprises to drive investments and adopt AI.

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