India's AI Revolution: A $115 Billion Economic Impact by 2027

According to a recent report by the International Data Corporation (IDC), India's spending on Artificial Intelligence (AI) technologies is projected to grow at a rate 2.2 times faster than overall digital technology spending over the next three years. This surge is expected to generate an economic impact of over USD 115 billion by the end of 2027.

Neha Gupta, Senior Research Manager at IDC India, emphasizes the pivotal role of AI in digital transformation, stating, "AI transformation and digital business are now inseparable, with AI leading as a high-growth priority in India's digital journey."

Digital Transformation and AI: The Future of Indian Business

By 2027, IDC predicts that 40% of IT leaders will transition into business leadership roles, aligning people, operations, and business models with digital technologies. This shift is part of a broader trend towards digital transformation becoming core to business strategy.

Furthermore, organizations with an integrated digital business architecture are expected to triple the value generated from their data and reduce the time to outcomes by 20% by the same period.

Challenges Ahead: Digital Skills Shortages and Data Management

Despite the optimistic outlook, the report highlights significant challenges. By 2027, about 55% of India-based organizations are expected to face digital skills shortages, potentially delaying projects and slowing AI technology implementations into the following year.

Additionally, the report warns that by 2025, 80% of enterprises may fail to treat data as a product, hindering their ability to unlock the value of data for all stakeholders and delaying AI-fueled business models.

Looking Forward: The Strategic Importance of AI Platforms

By 2028, 75% of enterprises that establish an AI platform strategy, connecting processes to broader business functions, are expected to achieve enhanced value from their investments, according to the IDC report.