The recent International Data Corporation (IDC) Playbook Tech Marketing Leaders highlights the significant impact of Generative AI (GenAI) on Indian enterprises and its implications specifically for technology marketing leaders.
The Indian AI market is poised for exponential growth, projected to surpass USD 5.9 billion by 2027, driven by a robust compound annual growth rate of 33.7% over five years.
The market for GenAI solutions is growing rapidly, presenting numerous opportunities for vendors, particularly in productivity-related use cases such as report summarization, job description generation, and code creation.
According to IDC, more than 25% of Indian organizations now consider themselves mostly digital or digital natives, and this trend is speeding up. This transformative change requires a fresh, data-centric, connected, and enduring digital business structure.
Additionally, over 30% of Indian organizations are making significant investments in GenAI, and this is expected to increase as businesses use GenAI technologies more.
The market is anticipated to develop, with an initial focus on business function use cases. In these cases, AI models will be integrated with enterprise data to support specific functions such as marketing, sales, service, and procurement. Ultimately, businesses will utilize GenAI for industry-specific use cases requiring extensive customization to address unique industry processes or activities.
There is a lot of optimistic outlook about GenAI’s potential for businesses. However, there is also confusion about how GenAI can be used in traditional AI and its relevance to businesses.
A combination of data, technology, processes, and people is essential for the successful adoption of GenAI. According to IDC’s Digital Business Survey 2023, India, n = 305, the top barrier to using GenAI in India is that organizations face the challenges of accuracy and confabulation, data security and privacy, bias increase, copyright/IP infringement, and misuse.
“Digital transformation is just the beginning—true value comes from moving towards an innovative state. Generative AI is poised to revolutionize Indian enterprises and drive significant growth in the AI market,” says Neha Gupta, Senior Research Manager, Software and IT Services market, IDC India.
