BFSI and Manufacturing Verticals Biggest Spenders on AI: IDC
IDC forecasts spending on artificial intelligence (AI) in India to grow at a CAGR of 30.8 per cent for 2019-23 as focus on AI adoption advances
International Data Corporation (IDC) has published a new report analyzing the India Artificial Intelligence (AI) market to provide an all-inclusive view on the growing customer demand for AI in India.
“COVID-19 is pushing the boundaries of organizations’ AI lens. Businesses are considering investments in intelligent solutions to tackle issues associated with business continuity, labor shortage, and workspace monitoring. Organizations are now realizing that their business plans must be closely aligned with their AI strategies,” said Rishu Sharma, principal analyst, Cloud and AI at IDC in India.
AI to maintain business continuity
Enterprises, as per the report are relying on AI to maintain business continuity, transform how businesses operate, and gain competitive advantage. According to IDC’s Worldwide Artificial Intelligence Spending Guide Forecast, India’s AI spending will grow from US $300.7 million in 2019 to US $880.5 million in 2023 at a CAGR of 30.8 per cent.
Enterprises, as per the report, rely on AI to maintain business continuity, transform how businesses operate and gain competitive advantage. As per IDC’s 2019 Cognitive AI Adoption Survey, almost 20% of enterprises are still devising AI strategies to explore new businesses and ventures. As per IDC’s 2020 COVID-19 Impact Survey, Wave 7, half of India enterprises plan to increase their AI spending in 2020.
However, data trustworthiness and difficulty in selecting the right algorithm, are some of the top challenges that hold organizations back from implementing AI technology.
“The variety of industry-specific tech solutions supported by emerging technologies like IoT, Robotics, Blockchain, etc. are getting powered by complex AI algorithms and are cloud-enabled to reach their max potential. In India BFSI and Manufacturing verticals are the two biggest spenders of AI across different use cases making almost 37% of the AI spending in 2019,” said Ashutosh Bisht, senior research manager for IDC’s Customer Insights and Analysis group.
“With the fast adoption of cloud technologies in India, more than 60% of AI Applications will be migrated to cloud by 2024,” added Bisht.