India’s Artificial Intelligence (AI) market, valued at $3 billion in 2020, only accounted for approximately 1% of the global pie, according to the International Data Corporation (IDC). But over the next five years, the market is expected to grow by 20%, the second-fastest rate among major economies after China.
A new report from Bain & Company claims that India, which produces 16% of the world’s AI talent pool, is not a market where AI is a fringe technology. Titled “From Buzz to Reality: The Accelerating Pace of AI in India”, the report looks at India’s AI landscape from the perspective of companies and vendors.
The report’s conclusions are based on the results of a survey conducted by 148 providers and 343 companies and was done in collaboration with Microsoft and the Internet And Mobile Association of India (IAMAI).
The report states that 80% of companies surveyed had at least one AI model in production and that technology solution providers are the drivers of AI adoption in India, with 64% having AI/ML as a core element for many of their companies. products, as against 56% of their global counterparts.
The momentum in enterprise adoption is greatest in industries such as communications, over-the-top (OTT) and gaming (55%), technology (48%) and financial services (39%), which have seen widespread AI adoption with more than three AI/ML models in production at scale.
More than 90 percent of Indian digital companies in CPG and retail and financial services have demonstrated AI/ML adoption and providers in India are ahead of their global counterparts when it comes to AI capability in scaled deployments, with 65 percent percent of their prototypes reaching production scale as opposed to the 49% success rate of global suppliers.
What does the future hold?
In the next three years, 49% of companies aim to increase the proportion of building their models and their dependence on cloud platforms is expected to decrease in the next few years, from 36% in 2019 to 29% in 2023.
However, there is room for improvement in model maturity in India and, according to the report, there is a lot of hype and hyperbole about what constitutes AI, with companies not being shy about making AI claims on rules-based systems, at best.
Through: Bain.com (opens in new tab)