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AI Expansion in India: Spending Projected to Hit $6 Billion by 2027, Reports IDC

The International Data Corporation (IDC) reports that the adoption of Artificial Intelligence (AI) and Generative AI (GenAI) in India is on the rise, encompassing software, services, and hardware for AI-centric systems. Spending in this sector is expected to reach $6 billion by 2027, with a compound annual growth rate (CAGR) of 33.7% from 2022 to 2027.

Globally, AI spending is projected to exceed $512 billion by 2027, more than doubling its 2024 market size. IDC highlighted these trends at the Directions India conference, emphasizing India’s potential to become a global leader in next-generation AI technologies. The event, which returned to India after a decade, gathered over 160 senior executives from major technology vendors and IT service providers.

The conference, themed “The Digital Business Impact of AI Everywhere,” featured discussions on global and local AI trends, predictions, and strategies for technology vendors and service providers. The focus was on helping clients achieve productivity gains, enhance experiences, and drive growth through AI initiatives.

IDC noted that 76% of Indian enterprises are currently engaged in GenAI proofs of concept or have investment plans in place. The transformation driven by AI is expected to impact culture and business models significantly, with data as a critical asset.

Predictions include that by 2025, 40% of service engagements will involve GenAI-enabled delivery, shifting human-delivered services for strategy, change, and training. IDC advised Indian service providers to continue delivering value and support customers through their AI transformations, aiming to lead the customer experience services market by offering comprehensive GenAI-fueled services.

PR Newswire

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