Global management consultancy Accenture Plc today revealed that artificial intelligence (AI) could add as much as US$957 billion to the Indian economy by changing the nature of work to create better outcomes for businesses and society.
The report, ‘Rewire for Growth,’ estimates that AI has the potential to increase India’s annual growth rate of gross value added (GVA) by 1.3 percentage points, lifting the country’s income by 15 percent in 2035.
“The time to act is now. With the right investments, AI can create a flywheel effect ‘liberating’ people to create long term economic and societal value,” said Rekha M Menon, Senior Managing Director and Chairman, Accenture India.
The report revealed that although major Indian technical universities have been pioneering fundamental research in AI, but they are not doing enough to strengthen the AI ecosystem around them, unlike their global counterparts such as Cambridge and Oxford in the UK. For AI to realise its full potential, India needs to develop a long-term vision and action plan that unites the ecosystem, and addresses technical and ethical questions as they arise. “Increase spending on core AI research, facilitate ecosystem collaboration for innovation, and create opportunities for smaller players,” the report added.
Investing in building multidisciplinary and STEAM (science, technology, engineering, arts and mathematics) demanded by AI will be the key, the report reads.
“The economic boost will be driven by innovative AI technologies that enable people to make more efficient use of their time and do what humans do best – create, imagine and innovate new things,” Menon added. “What’s needed is a clear, long-term vision, and a multi-stakeholder action plan that balances growth with the ethical questions posed by AI.”
The report further indicates that in line with global trends, large businesses will play a key role in unlocking the economic value of AI, with more than 88 percent of businesses in India surveyed by the Consultancy earlier this year, expecting to make moderate-to-extensive investments in one or more AI-related technologies over the next three years. In addition, digital platform companies can play a key role in driving AI innovations in India, in line with global trends.