A recent report by EY India titled “How much productivity can GenAI unlock in India? The AIdea of India: 2025” highlights the transformative potential of Generative Artificial Intelligence (GenAI) in the Indian job market.
According to the report, GenAI is expected to revolutionize 38 million jobs by 2030, driving a 2.61% productivity boost in the organized sector and an additional 2.82% in the unorganized sector.
GenAI for Automation and Task Enhancement
The report reveals that 24% of tasks across industries have the potential for full automation.
Additionally, another 42% can be enhanced through AI, freeing up between 8-10 hours per week for knowledge workers.
This significant increase in productivity is expected to have the largest impact on the services sector due to its higher labor share to gross output.
EY’s analysis of over 10,000 tasks across various industries shows varying productivity gains.
The services sector is anticipated to see the largest productivity boost, with call center management expected to witness an 80% productivity enhancement, followed by software development at 61%, content development and distribution at 45%, customer services at 44%, and sales and marketing at 41%.
Other sectors like IT/ITeS, healthcare, and banking/insurance are also expected to benefit, albeit to a lesser extent.
Talent and Resource Challenges
Despite the promising potential of GenAI, the report highlights significant challenges in talent and resource readiness.
Only 3% of Indian enterprises possess sufficient in-house talent and resources to fully leverage AI. Meanwhile, 97% of executives cite a lack of talent as a primary hurdle.
This underscores the need for building talent pipelines and prioritizing upskilling to ensure organizations can harness the full potential of AI.
The survey conducted by EY India reveals that 15% of surveyed enterprises have implemented GenAI in production.
Additionally, 34% have completed proof of concepts (PoCs) and 11% are working on making POCs successful.
However, 8% of those who have experimented with GenAI report facing challenges in realizing a tangible impact.
Additionally, only 3% of surveyed enterprises report being fully ready for AI deployments, with 23% reporting no state of data readiness.
Recommendations for Maximizing GenAI Potential
To maximize the potential for economic growth, the report suggests focusing on an AI policy agenda and compute infrastructure.
It also emphasizes AI research, responsible governance, intellectual property rights, and data protection.
Rajiv Memani, Chairman and CEO of EY India, emphasized the importance of fostering public-private collaborations.
He also highlighted the need for investing in talent development to make India a global hub for AI-skilled talent.
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