RT team
Artificial Intelligence (AI) investments in India are projected to grow 2.2 times faster than overall digital technology spending over the next three years, creating an economic impact exceeding $115 billion by 2027, according to IDC’s latest report.
The report highlights that by 2027, businesses will target at least a 70% success rate in Generative AI (GenAI) projects to enhance operational efficiency and boost revenue streams. Neha Gupta, Senior Research Manager at IDC India, emphasized that AI is becoming inseparable from digital business strategies, marking it as a high-growth priority. While digital transformation remains essential, AI is taking the lead in shaping India’s digital future.
By 2027, IDC predicts 40% of IT leaders will evolve into business leaders, aligning operations and business models with digital innovations. Companies with integrated digital business architectures are expected to triple the value derived from their data and reduce the time to achieve outcomes by 20%.
However, challenges persist. By 2027, 55% of Indian organizations may face digital skills shortages, delaying AI project implementations. Furthermore, by 2025, 80% of enterprises may fail to unlock the full value of their data due to inadequate strategies, hindering AI-driven business models.
Looking ahead to 2028, IDC forecasts that 75% of enterprises adopting AI platform strategies that integrate processes with broader business functions will realize significantly enhanced returns on their investments. This trajectory underscores AI’s growing importance as a transformative force in India’s economic and digital landscape.
