Generative AI could boost India’s economy by $1.2 - 1.5 Trillion in the next seven years as the Gen AI revolution unfolds across the globe, promising significant disruption and innovation, according to an EY report.

The report titled “The AI idea of India: Generative AI’s impact on India’s digital growth” said that if India fully utilized Gen AI technology across various sectors, it could potentially contribute an additional $349-438 Billion to the economy in the fiscal year 2029-30. The EY analysis said that this would result in a 5.9% - 7.2% increase in GDP compared to the baseline.

About 69% of the expected impact is projected to originate from sectors such as business services, financial services, education, retail and healthcare, due to improved employee productivity, operational efficiency, and much more robust customer engagement, as per the research.

The EY report threw up valuable insights into how various industries are gearing up for the adoption of  GenAI. Based on a detailed survey that covered 200 C-suite participants, the findings show that 60% of the organizations acknowledge the significant influence Gan AI will have on their business models. However, around 75% express a low to moderate level of readiness to harness the benefits of Gen AI.

The two primary challenges currently faced by these organizations are a shortage of skilled personnel, reported by 52% of respondents, and the availability of unclear use cases, cited by 47%. Surprisingly, only 36% of organizations consider data privacy as a potential risk associated with GenAI, according to research.

“Organizations are swiftly adopting an AI-first approach to digital transformation, aiming to enhance customer engagement,” said Mahesh  Makhija, Technology Consulting Leader, EY India.