India's AI Market Set to Reach $5.1 Billion by 2027 with Talent Growth & Investments
India's Artificial Intelligence (AI) market is on a trajectory of exponential growth, fueled by burgeoning talent and sustained investment. Projections unveiled at the 'Intel-AI For India' event forecast a remarkable 31.5% Compound Annual Growth Rate (CAGR), catapulting the market to a staggering $5.1 billion by 2027. The AI software sector spearheads this surge, anticipated to soar to $2.6 billion within the same timeframe. However, it's not just software driving this growth; AI infrastructure spending is projected to hit $733 million by 2027.
Santhosh Viswanathan, Vice President and Managing Director of Intel India, lauds India's unrivaled talent pool, coupled with frugal innovation and abundant data, positioning the nation at the forefront of the global AI revolution. India's proactive approach towards AI, underlined by strategic investments and a burgeoning developer community, is propelling transformative growth. In fact, India is poised to outpace other examined markets, including Australia, Indonesia, and Japan, bolstered by its significant share of the world's AI talent and data.
Looking ahead, investments in AI infrastructure over the next few years will lay the groundwork for high-impact use cases, promising transformative outcomes. Notably, the banking, financial services, and insurance (BFSI) sectors, alongside manufacturing, are emerging as top spenders, signaling a widespread adoption of AI technologies across industries.
India's government, led by Prime Minister Narendra Modi, has played a pivotal role in fostering an AI-friendly ecosystem. With a proactive stance, the government has earmarked $30.7 million in FY2024-25 to establish three centers of excellence in AI, focusing on agriculture, health, and sustainable cities. This strategic move underscores India's commitment to leveraging AI for societal development and economic growth.
As India surges ahead, surpassing even the US in AI capabilities, the future seems promising. With robust investments, a burgeoning talent pool, and governmental support, India is poised to not only lead the global AI revolution but also harness its potential for inclusive growth and societal transformation.
