Generative AI is poised to expedite the adoption of artificial intelligence nationwide, with an increasing number of organizations either exploring potential applications or actively investing in use cases.
According to the International Data Corporation (IDC), IT spending in India is forecasted to grow by 11% year-on-year, reaching $44 billion by 2024. Despite economic challenges, Indian enterprises have continued to invest in digital initiatives throughout 2023, aiming to enhance customer engagement, introduce new products and services, and boost operational efficiency. However, budget allocations have predominantly focused on software, application development, and cloud migration.
IDC projects that IT spending will maintain a compound annual growth rate of 9.9%, reaching $59 billion by 2027. The software market is expected to exhibit consistent growth, with double-digit increases anticipated in the coming years.
Generative AI is poised to drive AI adoption in the country further, with an increasing number of organizations exploring or investing in its applications. IDC predicts that investments in generative AI will represent 26% of the overall AI expenditure in India by 2027, growing at a compound annual growth rate of 101.6%.
Steven Frantzen, Head of WW Strategy and Senior VP & Regional Managing Director (EMEA) at IDC, stated, “Even amidst economic challenges and uncertainties in 2024, we anticipate global ICT spending to expand by more than 6%, three times the projected GDP growth. This growth heralds a new era of accelerated digital innovation, driven in part by increased investment in automation and generative AI.
