“Research firm IDC said on Wednesday that India’s AI (artificial intelligence) investment is projected to rise at a CAGR of 30.8 percent to cross USD 880.5 million (around Rs 6,490.6 cr) in 2023.
According to IDC’s Worldwide Artificial Intelligence Spending Guide Forecast, “”Enterprises are relying on AI to maintain business continuity, transform how businesses operate and gain competitive advantage. India’s AI spending will grow from USD 300.7 million in 2019 to USD 880.5 million in 2023 at a CAGR (Compound annual growth rate) of 30.8 per cent””.
Ms Rishu Sharma, Principal Analyst (Cloud and AI) at IDC in India, stated that COVID-19 is pushing the boundaries of organisations’ AI lens.
She said, “”Businesses are considering investments in intelligent solutions to tackle issues associated with business continuity, labor shortage, and workspace monitoring. Organisations are now realising that their business plans must be closely aligned with their AI strategies””.
The study cited the 2019 Cognitive AI Adoption Survey from IDC to claim that approximately 20 percent of companies are still designing AI strategies to pursue new companies and projects.
Trustworthiness of data and difficulty in choosing the right algorithm are some of the key difficulties that discourage organisations from adopting AI technology.
Complex AI algorithms are powering the spectrum of industry-specific tech solutions funded by emerging technologies such as the Internet of Things (IoT), robotics, blockchain, etc., and are cloud-enabled to achieve their full potential.
Mr Ashutosh Bisht, Senior Research Manager for IDC ‘s Customer Insights and Analysis division, said that in India, BFSI and manufacturing verticals are the two largest AI spenders in different use cases, accounting for almost 37 percent of AI spending in 2019.
He added that more than 60 percent of AI applications will be migrated to the cloud by 2024 with the quick adoption of cloud technology in India.”