AI investment in India to outpace digital tech spending, drive $115 billion impact by 2027: Report
New Delhi: Artificial Intelligence (AI) investment in India is projected to grow at 2.2 times the rate of overall digital technology spending over the next three years, generating an economic impact exceeding $115 billion by 2027, Times Now reported, citing a recent International Data Corporation (IDC) report.
The study further indicates that by 2027, company executives will expect a minimum 70 percent success rate for their Generative AI (GenAI) initiatives to drive operational efficiency and revenue growth.
“Investment in all AI categories is increasing at a significantly faster pace than overall digital technology spending. Leading digital business organisations are prioritising AI, intertwining AI transformation with digital business strategies,” said Neha Gupta, Senior Research Manager, Digital Business and AI Strategies at IDC India. She underscored AI’s growing role as the key driver of India’s digital transformation.
As companies embed AI into their strategic frameworks, the IDC report predicts that by 2027, 40 percent of IT leaders will transition into business leadership roles, bridging the gap between technology, operations, and business models.
Organisations with integrated digital architectures are expected to triple the value derived from data while reducing time-to-outcome by 20 percent.
However, challenges remain. By 2027, an estimated 55 percent of Indian enterprises could face digital skill shortages, potentially delaying AI implementation.
Additionally, by 2025, 80 percent of businesses may struggle to fully leverage their data due to ineffective data management strategies, hindering the development of AI-driven business models.
The report forecasts that by 2028, 75 percent of enterprises implementing AI platform strategies aligned with broader business functions will extract greater value from their investments.
AI is no longer just an enhancement to digital transformation but a foundational pillar reshaping business operations.
As AI adoption accelerates, Indian enterprises must tackle digital skill gaps and optimise data strategies to fully unlock AI-driven innovation.
With a focus on operational efficiency and revenue growth, AI is set to transform India’s digital economy in the coming years.
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