India to spend $6 billion on AI by 2027, IDC reports

These insights were shared with over 160 senior executives from India’s top technology vendors and IT service providers at the IDC Directions India conference on June 12, 2024.

Returning to India after a decade, IDC Directions focused on “The Digital Business Impact of AI Everywhere,” discussing global and local AI trends, projections, and strategic advice for leveraging AI to boost productivity, enhance customer experiences, and create new revenue streams.

Linus Lai, Vice President of Digital Business at IDC Asia/Pacific, highlighted, “This AI Moment is not a one-hit wonder. Its implications for India are profound, influencing cultural and business model transformations, with data emerging as the most valuable asset.”

Dr. Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research at IDC Asia/Pacific, emphasised India’s potential, stating, “India is the sleeping giant in Generative AI. Its scale, expertise, and startup ecosystem are poised to revolutionize AI both locally and globally.”

IDC predicts that by 2025, 40% of service engagements will involve GenAI, reshaping service delivery in strategy, change management, and training to prepare organizations for AI integration.

IDC recommends that Indian service providers continue to evolve internally while supporting their clients’ AI initiatives.

To lead in the CX services market, service providers should offer comprehensive GenAI-powered services to CMOs, guiding clients through the AI transition.