AI adoption to add $500 billion to India’s GDP by 2025: Nasscom

The adoption of artificial intelligence (AI) and data utilisation strategy can add $500 billion to India’s GDP by 2025, a new Nasscom report showed on Thursday.

The AI adoption in four key sectors — BFSI, consumer packaged goods (CPG) and retail, healthcare, and industrials/automotive — can contribute 60% of the total $ 500 billion opportunity, according to “AI Adoption Index” Nasscom, EY and Microsoft, EXL and Capgemini.

Though the current rate of AI investments in India is growing at a compound annual growth rate (CAGR) of 30.8% and poised to reach $881 million by 2023, it will still represent just 2.5% of the total global AI investments of $340 billion.