India’s Artificial Intelligence (AI) market is expected to reach $7.8 billion by 2025, growing at a CAGR of 20.2%, as per an International Data Corporation (IDC) report.
AI software segment would dominate the market and grow from $2.8 billion in 2020 at a CAGR of 18.1% by the end of 2025. Under the software (AI) category, applications brought in the largest share of revenue, a 52% growth over 2020.
Organisations were leveraging multiple AI applications such as CRM, ERM and others to manage operations, scale supply chains in response to real-time or predicted demands and also improve ROI and achieve cost savings, found the study.
"Indian organisations plan to invest in AI to address current business scenarios across functions, such as customer service, human resources (HR), IT automation, security, recommendations, and many more. Increasing business resilience and enhancing customer retention are among the top business objectives for using AI by Indian enterprises,” said Rishu Sharma, Associate Research Director, Cloud and AI, IDC India.
The study also found that major reasons for the failure of AI projects included disruptive results of current business processes and lack of follow-ups from business units.
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