In a reiteration of its previous findings, EY reports that generative AI could significantly enhance India's GDP, reaching a potential contribution of $1.5 trillion by 2029-30.

Fully harnessing generative AI The findings suggest that through advancements in technology and its varied applications in numerous sectors, India is on pace to add between $1.2 to $1.5 trillion to its GDP in the coming seven years, according to the latest insights from EY India.

The report titled ‘ The vision outlined in 'The AIdea of India' indicates that generative AI might inject between $359 and $438 billion into India's GDP specifically for the fiscal year 2029-30, marking a noteworthy growth of 5.9 to 7.2% beyond the expected baseline GDP. Moreover, the analysis asserts that around 69% of this anticipated economic uplift will stem from the broad adoption of generative AI across critical sectors like IT, legal, consultancy, financial services, education, retail, and healthcare.

This expectation is rooted in the capability of the technology to enhance workforce productivity, streamline operations, and foster more personalized interactions with clients.

The report emphasizes the necessity for government initiatives to create favorable conditions for generative AI’s growth, particularly by ensuring data accessibility. Developing local data sets, especially in various Indian languages, is essential. It highlights that governmental investment in both structured and unstructured data creation, open to public access, will be crucial.

Recently, a trend has emerged in the Indian startup ecosystem, with various companies launching their own generative AI models, including CoRover’s BharatGPT, Sarvam.ai’s OpenHathi, and Kissan AI’s Dhenu, with support from tech giant Microsoft.

In addition to enhancing data availability, the government could improve access to vital digital infrastructure by expanding 5G networks, building data centers, ensuring availability of specialized processors and AI-specific computing resources, and implementing policies designed to nurture and attract expert talent. large language models According to a recent EY survey conducted in October 2023, which included responses from 1,200 CEOs of major global firms, every participant from India expressed intentions to invest heavily in generative AI, with 84% recognizing the pressing need to act swiftly. Krutrim from Ola.

Managing Risks and Talent in Generative AI Deployment

While generative AI promises numerous advancements, the report also points out an array of challenges tied to its complex implementation and validation processes. Unlike traditional Machine Learning models that are more straightforward in their data and parameters, generative AI introduces unique risks that businesses will need to handle diligently.

It is critical for organizations to stay vigilant to prevent potential reputational damage and financial setbacks. The report urges C-suite executives to incorporate proactive risk management and governance strategies. Currently, organizations are identifying data privacy as their foremost concern.

Moving forward, companies are likely to face a shortage of professionals who possess the necessary skills, as generative AI stretches the current capabilities of the workforce. generative AI Despite India’s favorable position regarding AI talent, the rise of generative AI amplifies the existing skill gap. This mismatch highlights the importance of strategic recruitment to ensure successful implementation and scaling of prioritized use cases.

Furthermore, effective deployment will require a diverse skill set within generative AI Centers of Excellence, necessitating expertise in AI engineering, data science, foundational models, LLMs, AI orchestration, prompt engineering, Retrievable Augmented Generation (RAG), fine-tuning, and model deployment. Successfully navigating these hurdles will be key for organizations stepping into the generative AI landscape.

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Kumar is a seasoned technology journalist specializing in the dynamic intersections of AI/ML, marketing technology, and emerging sectors like cryptocurrency, blockchain, and NFTs. With over three years in the field, Kumar has built a solid reputation for crafting engaging stories, conducting meaningful interviews, and offering deep insights. His strength lies in producing impactful content, including articles, reports, and research publications for leading industry platforms. With a unique blend of technical acumen and storytelling ability, Kumar excels at breaking down complex tech concepts for varied audiences in an accessible manner.

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