The good news is that the pandemic years have given a push to digital technology, resulting in companies showing an improvement in the AI maturity index.
New Delhi: A new study by the Indian Institute of Management Ahmedabad (IIM-A) and Boston Consulting Group (BCG) has found that three of four Indian businesses are not yet leveraging artificial intelligence (AI) to drive profits. The study, titled “AI In India — A strategic necessity,” found that successful adoption of AI could add up to 1.4 percentage points annually to real GDP growth in India.
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The study also found that the top 500 Indian companies will need to train and upskill their mid- and senior-level management staff for one million hours if they want to teach them how to leverage AI to further their profits. The good news is that the pandemic years have given a push to digital technology, resulting in companies showing an improvement in the AI maturity index.
The report highlighted the existing demand-supply gap in the AI industry. According to the report, India only has around 4.5 per cent of the world’s AI professionals, and the talent crunch will get more acute. “76 per cent of India’s data talent is currently hired by the IT services industry. However, companies are struggling to find AI talent with the requisite business and sector understanding. As a result, direct hire of AI talent remains low despite high demand,” the report said.
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“Further, just the top 500 corporates (listed corporates by revenue) would need at least 25,000 to 30,000 advanced practitioners of AIML (Artificial Intelligence Markup Language) in the next 3 to 5 years. To handle AI driven transformations, the existing senior and middle level managers of these 500 companies would require a minimum of a million hours of training,” said the study.
The report emphasizes the significance of achieving an advanced level of AI maturity for success in today’s business landscape. “India is poised to enter into a digital revolution where successful AI adoption by our industry can be a crucial determinant of India’s competitiveness globally. Indian industry and our companies can leverage the widespread internet access and cost-effective labour to move ahead and align themselves to the global AI maturity standards,” said Bharat Bhasker, director of IIM-A.
The report concludes by calling on Indian businesses to take action now to start leveraging AI to drive profits and improve their competitiveness in the global market.
Here are some key takeaways from the study:
- Three of four Indian businesses are not yet leveraging AI to drive profits.
- Successful adoption of AI could add up to 1.4 percentage points annually to real GDP growth in India.
- The top 500 Indian companies will need to train and upskill their mid- and senior-level management staff for one million hours if they want to teach them how to leverage AI to further their profits.
- India only has around 4.5 per cent of the world’s AI professionals, and the talent crunch will get more acute.
- Achieving an advanced level of AI maturity is essential for success in today’s business landscape.
What Does This Mean For Businesses?
The findings of this study should be a wake-up call for businesses in India. If they want to remain competitive in the global market, they need to start leveraging AI now. This means investing in AI talent, training their existing employees, and adopting AI-powered solutions.
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The good news is that India has a number of advantages that can help it become a global leader in AI. It has a large pool of talented engineers and scientists, and it is a relatively low-cost destination for AI development. With the right investment and focus, India can become a major player in the global AI market.
