New Delhi: Generative AI has the potential to add a cumulative $1.2-1.5 trillion to India’s GDP over the next seven years, according to a report by Ernst & Young India.
The report, titled ‘The AIdea of India: Generative AI’s potential to accelerate India’s digital transformation’, provided insights into the industry’s preparedness and challenges in embracing Gen AI. Gen AI can potentially add a cumulative $1.2-1.5 trillion to India’s GDP by FY29-30, as per the report.
“The report forecasts that by fully capitalising Gen AI technology and its applications across sectors, India can potentially add $359-438 billion in FY29-30 alone, reflecting a 5.9-7.2% increase over and above the baseline GDP,” it said.
Nearly 69% of the overall impact is expected to be derived from sectors such as business services – including IT, legal, consulting, outsourcing, rental of machinery & equipment, and others – financial services, education, retail, and healthcare.
The anticipated impact entails improvements in workforce productivity, increased operational efficiency, and personalised customer engagement, the report said.
