India's AI Spending to Hit $5 Billion by 2027

On 14th May 2024, Intel-IDC report forecasts India's AI spending to triple by 2027, reaching $5 billion. Infrastructure provisioning leads expenditure, driven by growing technical expertise and data availability.

Key Points

Tripling AI Expenditure: Intel-IDC report projects India's AI spending to soar to $5 billion by 2027, driven by a 31.5% CAGR from 2023.
2023 Expenditure Overview: In 2023, Indian entities invested $1,703.8 million in AI, with major spending on infrastructure provisioning and related software.
Diverse Investment Areas: Top spending categories include augmented customer service agents, digital assistance, augmented threat intelligence, and program advisors recommendation systems.
Infrastructure Dominance: AI infrastructure provisioning remains the largest contributor to overall expenditure, reflecting the country's readiness for AI adoption.
India's Data Prowess: India, producing 20% of the world's data, emerges as a key player in the global AI landscape, with the third-largest market size.
Technical Skill Leadership: India leads in technical skill availability globally, providing a strong foundation for AI development and deployment.