Indian AI market to reach $7.8 billion by 2025
Research firm IDC estimates that the artificial intelligence market in India will see a compound annual growth rate of 20.2% to reach $7.8 billion in total revenues over the next five years.
Businesses in India are expected to accelerate adoption of AI-centric and AI non-centric applications for the next five years.
The AI software segment will grow the most, from $2.8 billion in 2020 at a CAGR of 18.1% by the end of 2025, said IDC.
Companies are pulling in multiple AI applications such as CRM and ERM to manage operations, scale supply chains in response to real-time or predicted demands and more with the intention to provide benefits for their customers, improve return on investments (RoI) and save on costs.
“Indian organisations plan to invest in AI to address current business scenarios across functions, such as customer service, human resources (HR), IT automation, security, recommendations, and many more,” stated IDC’s Rishu Sharma.” “Increasing business resilience and enhancing customer retention are among the top business objectives for using AI by Indian enterprises,” he added.
Cloud is cited as the preferred deployment locations for Indian AI/ML solutions, with around 51% of businesses processing their transactional and social media data through AI/ML solutions.
“With data being one of the most crucial components in an AI/ML project, businesses use variety of databases to handle large data volumes for making real time business decisions. Organisations must focus on getting high-quality training data for AI/ML models,” said Swapnil Shende, AI Senior Market Analyst.
AI applications gain the largest share of revenue for AI software, at more than 52% in 2020.
“The major reasons for AI projects to fail includes disruptive results to current business processes and lack of follow-ups from business units,” IDC reported.
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