Wednesday, October 22, 2025
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EY Report: Gen AI adoption varies by segment as production rises

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EY India latest report, “Is Generative AI beginning to deliver on its promise in India? – EY AIdea of India Update, shows that domestic enterprises are carefully considering the enterprise-grade functionality and reliability of GenAI.

The EY analysis of the publicly disclosed adoption of AI/GenAI by India’s top 50 most valued Indian unicorns shows that 66% are already using AI or GenAI technology, indicating that start-ups have been more proactive in adopting AI technology than the legacy players.

About 15-20% of POCs by domestic enterprises have been rolled out into production. While, GCCs are rapidly embracing GenAI for innovation, rolling out 30-40% of POCs to production.

With their deep talent pool in AI/ML, GCCs also hold the key to unlocking a treasure trove of AI-powered opportunities. 

Mahesh Makhija, Partner and Technology Consulting Leader, EY India, says, “Enterprises need to make the shift from ad hoc experiments to deploying ‘fit for purpose’ use cases for immediate value creation and long-term programs that provide functional transformation.”

“They will not only have to build their enterprise AI platform but also keep a close eye on cost implications/total cost of ownership and stay agile to adopt a hybrid approach due to lack of India availability of different models”, Mahesh Makhija added.

India’s AI investment landscape is rapidly evolving, marked by a strategic emphasis on AI, IoT, and government-driven AI initiatives.

Unlike the first quarter of 2023, in which investments were primarily in the Healthcare, Life Sciences, and Financial Services sectors, the first quarter of the year witnessed diversification into various sectors such as Technology, Industrial and Energy Utilities, and Consumer Products Goods (CPGs).

Investors in AI companies are looking at three facets while evaluating potential investees: estimating AI performance and its subsequent impact, understanding the cost implications of AI, and considering AI compliance factors.

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Sheenu Pradhan
Sheenu Pradhanhttps://sightsinplus.com/
Sheenu Pradhan, Editor Content, SightsIn Plus. She has over 8 years of experience in human resources. Prior to this, she has been associated with Wictor Chemicals India, Wipro, and Shakti Plas Industry.