AI spending in India may triple to $5 bn by 2027; $1,703 mn spent in 2023

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Spending on Artificial Intelligence (AI) in the country may triple to $5 billion by 2027, an Intel-IDC report released on Tuesday said.

According to the report, entities in India spent $1,703.8 million on AI in 2023.

"AI spending in India is expected to increase to $5 billion with CAGR (compound annual growth rate) of 31.5 per cent between 2023 to 2027. By 2027 AI will be everywhere," Sharath Srinivasamurthy, Associate Vice President, IDC said.

He said that in 2023, major spending of $209 million was driven by AI infrastructure provisioning and related software.

It was followed by augmented customer service agents at $168.8 million, digital assistance $113.1 million, augmented threat intelligence $100.1 million and programme advisors recommendation systems $97.1 million.

"The infrastructure provisioning will continue to be the biggest contributor in overall spent," Srinivasamurthy said.

Intel India Region Vice President and Managing Director, Santhosh Viswanathan said India is ready for AI as around 20 per cent of the world's data is produced in the country and it is the third biggest global market.

Viswanathan said India leads globally in terms of technical skill availability.