The data from staffing firm Teamlease Digital indicates that the rate of artificial intelligence (AI) adoption in key industries across India reached around 48% in the fiscal year 2024. Furthermore, the report suggests that this adoption rate is expected to expand by an additional 5-7% in the next fiscal year, FY2025.
India is experiencing a surge in the adoption of artificial intelligence (AI) across key industries, with the rate reaching approximately 48% in the fiscal year 2024, and expected to further expand by 5-7% in the next fiscal year, according to data from staffing firm Teamlease Digital.
The report highlights that nearly 75% of organizations across various sectors are actively considering integrating AI into their operations within the next year, underscoring the growing importance of this transformative technology.
The banking and financial services (BFSI) industry leads the pack with a 68% AI adoption rate in FY2024, followed closely by the tech industry at 60-65%. Other sectors are also embracing AI, with the pharmaceutical and healthcare industry reporting a 52% adoption rate, while the fast-moving consumer goods (FMCG) and retail sectors stand at 43%. The manufacturing industry has a 28% AI adoption rate, infrastructure and transport at 20-22%, and media and entertainment at 10-12%.
Teamlease Digital estimates that the AI market size in India was $6 billion in 2023 and is projected to reach $20 billion by 2028, growing at a compound annual rate of 26%. IT service providers currently hold 60% of the AI market share, followed by captives/global capability centers (GCC) at 8% and IT-enabled service (ITeS) providers at 7%. Non-IT industries account for more than 28% of the total AI market share, with the BFSI sector holding a significant 30% share within this segment.
Despite this rapid growth, India's AI adoption is still lagging behind global markets, particularly the United States, due to a talent gap of close to 50% in the country. While India has around 4.2 lakh AI professionals, the demand is for 6 lakh professionals. Additionally, the US has more advanced infrastructure and robust funding for AI startups.
The report emphasizes the need for government support and policy initiatives to further enhance India's AI capabilities and ecosystem. The government has already approved the allocation of over Rs 10,000 crore towards the India AI Mission, aimed at bolstering the country's global leadership in AI by supporting the expansion of compute capacity, AI skills, and innovation.
Overall, the surge in AI adoption across India's industries highlights the transformative potential of this technology and the country's efforts to harness its benefits and catch up with global leaders in the AI landscape.
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