New Delhi: According to a recent report by Intel and IDC, India’s expenditure on artificial intelligence (AI) is projected to exceed $5 billion within the next three years, achieving a compound annual growth rate (CAGR) of 31.5%. The report said that the Banking, Financial Services, and Insurance (BFSI) sectors, along with the manufacturing sector, especially electronics and consumer goods, are coming out to be the primary investors in AI within India.
India is positioned at the forefront of AI investment among the eight regions analysed, which also include Australia, India, Indonesia, Japan, Korea, Malaysia, Singapore, and Taiwan.
India currently falls under AI Practitioner (stage 2). The Indian government has also planned to set up three AI centres of excellence focused on agriculture, health, and sustainable cities, allocating $30.7 million to the initiative in the fiscal year 2024-25. By 2027, India’s AI software sector is also expected to reach $2.6 billion, and AI infrastructure investment is projected to reach $733 million.
Santhosh Viswanathan, VP and Managing Director at Intel, India Region, said, “India’s commitment to AI, underscored by its proactive approach, is driving transformative growth. This positions India as a frontrunner in shaping the future of this technology.”
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