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Generative AI Revolutionizing the IT Sector and Boosting Economic Growth

Generative AI driven revolution in Indian IT: $50-100M investment by FY25, generating billions in revenue & unlocking $621B GDP potential. Get the insights!

Unleashing India's Potential Generative AI Revolutionizing the IT Sector and Boosting Economic Growth
Image Credit: McKinsey

We all may know that Generative AI models, like GANs (Generative Adversarial Networks) and VAEs (Variational Autoencoders), are designed to learn from existing data and generate new content. It closely resembles the training examples while also introducing variations and creative elements.

Recent research reveals that leveraging generative AI has the potential to broaden employment opportunities for the top 1% of India’s IT workforce engaged in sales and support, resulting in an impressive $2 to $3 billion boost to the industry.

India’s computer services sector, currently valued at $245 billion, relies on a sales and support workforce of 300,000 individuals. However, within the next three to five years, approximately 50,000 to 60,000 employees – around 1% of India’s IT workforce – will witness the transformative impact of generative AI, as indicated by a survey conducted by IT market intelligence firm UnearthInsight.

How Will Generative AI Influence IT Market?

Generative AI Revolutionizing the IT Sector and Boosting Economic Growth

The exciting news is that job losses may not be inevitable! The report highlights that the impact of AI on these jobs can actually foster greater collaboration among employees and AI-powered technologies, opening up new possibilities for growth and innovation.

Get Ready For Game Changer 

Currently, the tech services industry thrives with a whopping 300,000 employees dedicated to sales and support. Brace yourself, as the next three to five years could witness a transformative shift, with approximately 50,000 employees facing the impact of AI technology, according to a UnearthInsight study cited by the newspaper. Exciting times lie ahead!

Financial Forecasting

With on-demand reporting, AI-driven scenarios, and regulatory reports, positions involved in financial analysis and forecasting will experience a game-changing influence within the internal finance department.

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Unlock the Power of Date

SAP’s and Oracle’s platforms hold a treasure trove of sales, HR, and accounting data, and the research suggests that generative AI solutions will seamlessly integrate with these platforms, providing clients with enhanced capabilities alongside their software.

According to Sid Pai, the visionary founder of Siana Capital, generative AI is a net positive for the global economy. Its benefits extend far and wide, impacting diverse industries, including IT services. From boosting creativity in coding, literature, and essays to supercharging productivity, generative AI is the future we’ve been waiting for!

Unleashing India’s Potential: Generative AI Revolutionizing The IT Sector And Boosting Economic Growth
Image Credit: OpenGov Asia

According to UnearthInsight, the IT services sector is projected to invest between $50 and $100 million by FY25 in generative AI solutions for sales, support, and enabling tasks. These solutions are set to revolutionize employee roles and enhance their experiences.

In collaboration with SAP, Oracle, Workday, Salesforce, and other smaller bolt-on solution providers, the Indian IT sector aims to bring these innovative solutions to customers, offering promising returns on investment metrics. This endeavor has the potential to generate an additional $2-3 billion in revenue over the next four to five years.

A recent paper by Ficci-Access Partnership, published this month, highlights the utilization of generative AI to augment job tasks as a means to unlock the Indian economy’s productive potential. It suggests that this approach could unleash a staggering $621 billion, equivalent to 18% of GDP in 2021.

The report emphasizes that the manufacturing, wholesale, and retail trade sectors hold the largest portion of this potential, as they employ a significant portion of the workforce and exhibit high levels of worker productivity.

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Written By

Sharmistha is an accomplished content writer, specializing in SEO Content Writing, blogs, and articles. Previously, she worked with India's largest edtech giant and now she is developing her skills in digital marketing across various aspects. With a Master's Degree in Environmental Sciences, she brings a unique perspective to her writing, blending her passion for engaging and informative content creation that captivates audiences. Sharmistha's compelling narrative and profound knowledge make her a versatile writer who easily communicates with readers' diverse minds.

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