July 14, 2023: The Brij Disa Centre for Data Science and Artificial Intelligence (CDSA) at the Indian Institute of Management Ahmedabad (IIMA) and BCG X, the AI, and Digital Transformation unit of the Boston Consulting Group (BCG) have collaborated to release a comprehensive report titled "AI in India - A Strategic Necessity" on the AI readiness levels of Indian businesses. The report emphasizes the significance of achieving an advanced level of AI maturity for success in today's business landscape
The report findings are based on the study of 130 companies from the Banking, Financial Services, and Insurance (BFSI), Consumer Goods (CG), and Industrial Goods (IG) sectors along with extensive interviews and surveys conducted on CXO’s of large-sized, medium, and small organisations. The study objectively and wholistically measures the ability of a company to leverage AI to drive its strategic objectives and enhance its financial and operational performance.
The report provides key insights into India’s corporate AI landscape and roadmaps in AI adoption. The study reveals that select Indian BFSI companies (particularly banks and new-age NBFCs) have very high AI Maturity, on par with global frontrunners. It divides companies into four groups based on their maturity level— Leaders, Steady Followers, Leapfroggers and Laggards. 11% of companies in the set were adjudged Leaders, that now face a stiff challenge from the Leapfroggers (9% of the companies) who started their AI-driven transformation journey late but have improved sharply in AI Maturity in the last three years, converging with the Leaders on most aspects of AI Maturity. However, the concern emerged with Laggards, about 2/3rds of the companies, that have some exposure and investment in AI in their Technology, Data and Analytical capabilities.
The report offers actionable guidance for companies with mid-level AI maturity to progress towards global best-in-class AI maturity levels. For leaders in AI adoption, the report focuses on exploring the next frontiers of AI excellence. Research shows that AI investments augmenting end-user value and topline growth could drive significant economic and wage expansion. The opportunity is India’s for the taking—the challenge is now to turn the enormous potential of AI into reality.
-Select companies in the BFSI, CG, and IG sectors have achieved high AI maturity, positioning themselves at par with global benchmarks
-A Significant Leap: 10% organizations have transformed their AI capabilities in the last 3 years, and they come from across sizes
-Data mindset in Leadership is the Key: Top 500 Indian companies require 1 Million hours of training in upskilling mid and senior level management on the business aspects of AI, digital transformation, Agile ways of working and more
-Most MSMEs are now able to leverage AI because of on-demand access to business software and the availability of services like digital payment gateways, fraud detection systems and CRM.
-Dearth of Data scientists with domain expertise: Need for 25,000 to 30,000 advanced practitioners of AIML expected in Top 500 Companies in the next 3-5 years
-India has only around 4.5% of the world’s AI professionals, and the talent crunch will get more acute.
-Benefits of AI: Rs 1.5-2.5 Trillion incremental pre-tax profit for the top 500 Indian companies in next 5 years
Releasing the study, Professor Bharat Bhasker, Director of IIMA, said, "India is poised to enter into a digital revolution where successful AI adoption by our industry can be a crucial determinant of India’s competitiveness globally. Successful adoption of AI could add up to 1.4 percentage points annually to real GDP growth of India. From the perspective of corporates, successful adoption of AI is expected to add over a five-year period, INR 1.5-2.5 trillion in incremental pre-tax profit for the top 500 Indian companies alone. This presents an incredible opportunity for the Indian industry and our companies can leverage the widespread internet access and cost -effective labour to move ahead and align themselves to the global AI maturity standards.
Complete report here