Increase in AI intensity by 1 unit can lead to 2.5% increase in GDP: ICRIER

Niti Aayog CEO Amitabh Kant, while releasing the report, said India is in the midst of a once-in-a-generation disruption driven by AI

A unit increase in artificial intelligence (AI) intensity, measured as the ratio of AI investments to total sales, can result in a 2.5 per cent increase in India's GDP in the immediate term, according to a report by economic think tank ICRIER.

The economic effects of AI also include indirect effects on productivity, the Indian Council for Research on International Economic Relations (ICRIER) said in the report titled 'Implications of AI on the Indian Economy'.

"The results find a positive and significant relation between AI using firms and TFP (total factor productivity) growth. The estimates suggest that a unit increase