Investment in India’s Artificial Intelligence (AI) capabilities is growing at a CAGR of 30.8% and is expected to reach $881 million by 2023, according to the latest AI Adoption Index report. ‘AI by NASSCOM.

Global investment in AI has doubled over the past year, but India’s share of global investment remains at 1.5%, according to the report. India is starting from a lower base than its global peers and, despite its strong growth, the country will still only account for 2.5% of global investment in 2023.

AI will add value added worth $450-500 billion to India’s GDP by 2025. More than 60% of this value is expected to come from the consumer goods and retail sectors , banking, financial services and insurance, energy and industry, car manufacturing. , and health care, according to the report.

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NASSCOM, along with EY, surveyed approximately 350 companies. The study found that approximately 65% ​​of organizations have defined an AI strategy either at the functional level or at the enterprise level. AI maturity in India is at Enthusiast – the second level of the four-step adoption assessment.

While Indian companies are using AI for different business functions, predictive analytics and chatbots are the most widely implemented AI applications in the country.

The report marked the Personal Data Protection Bill as a major policy change. He suggested companies consider sanitizing data and removing personal identifiers to comply with the proposed standards.

Debjani Ghosh, President of NASSCOM, said, “The pandemic has made organizations moving from data and technology silos at an absolutely critical time to develop specialized AI capabilities at scale across industries, combined with a structured strategy for using data.

Amitabh Kant, Managing Director of NITI Aayog, said India still needs to improve in terms of basic and applied research, and high quality research. “Our supercomputing capabilities need to be in the same league as the US and China,” he added.

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