Generative Artificial Intelligence (GenAI) to boost India's Information Technology (IT) industry's productivity by up to 45%: Ernst & Young (EY) India
- IBEF
- February 11, 2025
The increasing use of Generative Artificial Intelligence (GenAI) is expected to boost the productivity of India's Rs. 22,21,230 crore (US$ 254 billion) software industry by 43%-45% over the next five years, as per a survey by EY India. This growth will result from IT firms' internal adoption of GenAI and a shift in client projects from proof of concept to large-scale production. Leading Information Technology (IT) companies like Tata Consultancy Services and Infosys have reported increased Artificial Intelligence (AI) - driven projects, with 89% of clients trialing GenAI and 33% of them already in production. According to EY India's technology consulting partner, Mr. Abhinav Johri, enterprises are rapidly moving from experimentation to full-scale adoption, reflecting strong industry confidence in AI's potential.
Among various IT roles, software development is expected to see the highest productivity increase at 60%, followed by Business Process Outsourcing (BPO) services (52%) and IT consulting (47%). Together, these three segments will contribute 50%-60% of the overall productivity improvement in tech services. The growing adoption of AI is enhancing efficiency and reducing costs, improving customer service, and driving revenue growth, making it a transformative force in India's IT industry.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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