New Delhi: A new study has found that India’s top 500 companies need to train and skill their middle and senior-level management employees for one million hours if they want to teach them how to use artificial intelligence (AI) to boost their profits. How to take advantage of ,
A report by the Brij Disa Center for Data Science and Artificial Intelligence (CDSA) at the Indian Institute of Management Ahmedabad (IIM-A) and the Boston Consulting Group has found that three out of four Indian businesses still do not know the benefits of AI technology. How to pick up To make profits and are lagging behind in this regard. The good news is that the years of the pandemic have led to a boost in digital technology, as a result of which companies have shown improvements in the AI Maturity Index.
The report titled ‘AI in India – A strategic need’ released on Wednesday evening said that successful adoption of AI is likely to add Rs 1.5-2.5 trillion in incremental pre-tax profits for these companies over a period of five years .
The report’s findings are based on a study of 130 companies – across the banking, financial services and insurance (BFSI), consumer goods (CG), and industrial goods (IG) sectors – along with extensive interviews and surveys where the respondents’ main experience was large size. Executives (CXOs) of medium and small organizations.
The study objectively measured a company’s ability to leverage AI to meet its strategic objectives and enhance its financial and operational performance.
The report also highlighted the current demand-supply gap in the AI industry.
“Top 500 Indian companies will require at least 25,000 to 30,000 advanced practitioners of AIML (Artificial Intelligence Machine Learning) in the next 3-5 years… A NASSCOM [National Association of Software and Service Companies] The report also forecasts that the demand-supply gap for digital technology talent will increase 3.5 times to 1.4-1.8 million by 2026. Current study estimates that core AI talent data scientists, data engineers, enterprise architects will be 15% to 20% of the headline number,” the report said.
According to the report, the global AI market is expected to reach an estimated US$450 billion in 2022, growing at an annual rate of over 20 percent. In India, AI spending reached US$665 million in 2018 and is expected to reach US$11.78 billion by 2025.
Releasing the report on Wednesday, IIM-A Director Bharat Bhaskar said, “India is poised to enter a digital revolution, where successful AI adoption by our industry could be a key determinant of India’s competitiveness globally . Successful adoption of AI could increase real GDP by 1.4 percentage points annually [gross domestic product] India’s development.
Bhaskar said: “From the perspective of corporations, successful adoption of AI is expected to add INR 1.5-2.5 trillion to incremental pre-tax profits for the top 500 Indian companies alone over a five-year period. This presents an incredible opportunity for Indian industry and our companies can take advantage of widespread internet penetration and cost-effective labor to move forward and align themselves with global AI maturity standards.
conclusion
The study found that AI maturity among Indian companies is improving steadily and the pandemic has pushed companies towards digital technologies.
Ten percent of the companies surveyed were labeled ‘leaders’, meaning they were able to successfully leverage AI to increase their output and were AI mature. While 23 percent of companies were found to be ‘jumps’ – yet to successfully implement AI systems – 67 percent were tagged ‘lagers’, meaning AI adoption was found to be trivial.
The study suggested that when it comes to the major contributors to increasing profits through AI adoption, algorithms contribute around 10 per cent to it, while data and technology infrastructure add 20 per cent to it. The remaining 70 percent depends on people, processes and business transformation.
In the years of the pandemic, the study found, the AI maturity gap between leaders and leapfroggers narrowed, leaving leaders poised to give competition to leaders in the coming years.
An industry-wise analysis of the companies – consumer goods industry, industrial goods industry and banking, financial services and insurance industry (BFSI) – was also conducted to see which performed better on the parameter of AI adoption.
While BFSI was found to be in a better stage of AI maturity and can compete with global standards, the industrial goods and consumer goods industries fared poorly on the metrics.
The study found that 75 percent of the industrial goods and 75 percent of the consumer goods industries were backward and lacked AI maturity.
(Edited by Poulomi Banerjee)
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