India's Artificial Intelligence (AI) market, valued at $3 billion in 2020, was only approximately 1 per cent of the global pie, according to International Data Corporation (IDC). But, over the next five years, the market is expected to grow at 20 per cent, the second-fastest rate among major economies, behind only China.
A new report from Bain & Company states India, which produces 16 per cent of the world's AI talent pool, is not a market where AI is a fringe technology. Titled "From Buzz to Reality: The Accelerating Pace of AI in India", the report looks at India's AI landscape from the perspective of enterprises and providers.
The findings of the report are based on the results of a survey completed by 148 providers and 343 enterprises and was done in collaboration with Microsoft and the Internet And Mobile Association of India (IAMAI).
Key findings
The report states that 80 per cent of enterprises surveyed had at least one AI model in production and that technology solution providers are the drivers of AI adoption in India with 64 per cent having AI/ ML as a core element for many of their products, as against 56 per cent of their global counterparts.
The thrust in adoption for enterprises is maximum in sectors such as communication, over-the-top (OTT) and gaming (55 per cent), technology (48 per cent), and financial services (39 per cent), which have seen broad AI adoption with more than three AI/ML models in production at scale.
More than 90 per cent of Indian digital companies in CPG & retail and financial services have demonstrated AI/ML adoption and providers in India are ahead of their global counterparts when it comes to AI capability on scale implementations, with 65 per cent of their prototypes reaching production scale as opposed to global providers' 49 per cent success rate.
What does the future hold?
In the next three years, 49 per cent of enterprises aim to increase the proportion of building their models and their reliance on cloud platforms is expected to decrease in the coming years, from 36 per cent in 2019 to 29 per cent in 2023.
However, there is scope to improve model maturity in India and, according to the report, there is plenty of hype and hyperbole around what constitutes AI with companies not being shy about making AI claims around systems that are rules-based at best.
Via: Bain.com
