Artificial Intelligence Predicted to Boost Indian Economy by $957 Billion According to Accenture Study
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A new report has highlighted some key findings about India's progress in the field of Artificial Intelligence (AI) compared to other G20 economies.
The report, titled 'Rewire for Growth' by Accenture, suggests that while India has made strides in the number of AI startups, it lags behind on several key indicators of AI development. In 2016, India ranked third among G20 countries in terms of the number of AI startups, but the size of funding received is substantially smaller than in the United States and China.
One of the areas where India needs to focus is the development of a long-term vision and action plan for an AI blueprint. While it is common for such initiatives to involve government agencies, research institutes, and industry stakeholders, the specific institutions responsible for this in India are not yet clearly identified.
India's major technical universities have been pioneering fundamental research in AI, but they are not doing enough to strengthen the AI ecosystem around them.
The report explores the strength of India's AI innovation ecosystem across five key pillars: Universities, Startups, Large Businesses, Policy makers, and Multi-Stakeholder Partnerships. It finds that while India has made progress in some areas, there is still room for improvement.
Despite these challenges, the report is optimistic about India's potential to harness the power of AI. Rekha M. Menon, Senior Managing Director and Chairman of Accenture India, stated that AI's transformative power can be compared to the advent of computing itself. The right investments in AI, she believes, can create a 'flywheel effect' that could liberate people to create long-term economic and societal value.
The report estimates that AI has the potential to increase India's annual growth rate of Gross Value Added (GVA) by 1.3 percentage points. By 2035, the implementation of AI could add US$957 billion to the Indian economy. Furthermore, AI could potentially lift India's income by 15 percent in 2035.
In conclusion, while India has made progress in the field of AI, there is still room for improvement. By focusing on the development of a long-term vision and action plan, strengthening the AI ecosystem around major technical universities, and making the right investments, India can unlock the full potential of AI and reap the benefits for its economy and society.
