How are technology and AI adoption impacting India's economy?

India will take over the chair of the Global Partnership on Artificial Intelligence for 2022-23 at a Tokyo body meeting on November 21. As technology and artificial intelligence (AI) continue to advance, India is quickly becoming a hub for innovation and development. AI adoption has been embraced by many businesses in India, where it is being used to automate tasks, improve customer service and create new opportunities for economic growth.

 The Benefits of Technology & AI Adoption in India

The Indian government has invested heavily in technology-driven initiatives such as digital infrastructure, e-commerce platforms, digital payments, and online banking platforms. These investments have had a tremendous impact on the country’s economy. In addition to providing access to more markets worldwide, these initiatives have enabled businesses to reduce costs while increasing efficiency.

AI has also been widely adopted by many businesses in India. Companies such as Flipkart use AI to power their recommendation engines, which helps them provide customers with better shopping experiences. Many banks are also using AI-powered chatbots to help customers manage their accounts or find answers to questions about services offered by the bank. The introduction of these technologies has made it easier for businesses in India to compete with companies from other countries that provide similar services or products.

The Indian Automation Revolution

Automation has been rising recently as companies look to automate mundane tasks and increase productivity with minimal labor costs. This has increased industrial output, which is helping to drive economic growth. According to a report by McKinsey & Company, automation could add up to USD 1 trillion to India’s GDP by 2030.

AI Solutions Fueling Growth

AI solutions have also been gaining traction across various industries as businesses look to leverage the power of data. AI solutions enable companies to make better decisions based on insights derived from data analysis. This helps organizations become more efficient, improving profitability and cost savings. According to a report by Accenture, AI could add up to 16 percent annually, or USD 957 billion, to India’s economy by 2035.

Fostering Digital Transformation

Digital transformation initiatives have been gaining momentum over the past few years as organizations look to adopt digital technologies like cloud computing, the internet of things (IoT), blockchain, etc., for improved performance. These technologies enable organizations to improve customer experience through personalized services, optimize operations for better efficiency, and develop innovative products faster than ever before. A report by Deloitte Insights estimates that digital transformation initiatives could contribute up to USD 154 billion annually or 6 percent of GDP by 2021—making it a significant driver of growth for India’s economy. 

 Challenges Facing Technology & AI Adoption in India

Despite the numerous benefits of technology and AI adoption in India, some challenges still need to be addressed before these technologies can become fully integrated into everyday life. One challenge is access—not everyone in India has access to reliable internet or mobile devices, making it difficult for them to take advantage of digital services or products offered online. Data privacy concerns remain an issue as more people rely on websites or apps that require personal information for authentication or other purposes. Finally, there is a lack of skilled professionals with the knowledge or experience to develop new technologies or maintain existing ones.

 India may still need to become a global leader in technological innovation. Still, its commitment to embracing technology and artificial intelligence (AI) means it should be taken seriously as a potential powerhouse for driving economic growth through tech adoption. The government’s commitment to investing in digital infrastructure and encouraging businesses to adopt technologies like AI has already positively impacted the country’s economy. However, some challenges still need to be addressed before technology can become fully integrated into everyday life in India. Nevertheless, with continued investment and commitment from all stakeholders involved – including investors – we could see significant growth over the next few years as innovation continues apace across one of Asia’s most populous countries.