An early analysis of the state of affairs of Generative Artificial Intelligence (Gen AI) adoption in India in 2024 shows that digital-savvy start-ups and Global Capability Centres (GCCs) have moved faster in rolling out proof of concept (PoCs) to production, reveals a May 16 report by Ernst & Young India.
On the other hand, domestic enterprises are carefully considering the enterprise-grade functionality and reliability of Gen AI.
This indicates that start-ups and GCCs have been more proactive in terms of adopting AI technology as compared to the legacy players, the report said which is titled "Is Generative AI beginning to deliver on its promise in India? - AIdea of India Update".
The report has been published at a time when various organisations are testing AI and Gen AI products, and experts are divided on whether PoCs will translate into production-grade products, which will ultimately generate revenue.
The report also highlights three key challenges for organizations in making investment decisions: hallucination of LLMs (Large Language Model) responses, data privacy and sovereignty, and the cost implications of deploying Gen AI in production.
The report shows that 66 percent of India’s top 50 most valued Indian unicorns have rolled out Proof of Concepts (PoCs) into production. This is against 15-20 percent of PoCs rolled out by domestic enterprises into production.
Speaking about GCCs, they have set the ball rolling for about 30-40 percent of PoCs into production. These captive centre's hold the key to “unlocking a treasure trove of AI-powered opportunities,” the report highlighted.
Also read: Gen AI-related revenue for SaaS and IT firms to touch $1.3 trillion by 2033: Report
Most implemented GenAI use-cases
The report states that about one-third of the use-cases are on utilising Gen AI to execute point tasks using intelligent assistants. Another 25 percent relate to marketing automation, enabled by text generation and multimodal capabilities such as text-to-image and text-to-video.
Document intelligence is emerging as a key opportunity with around about 20 percent of the use-cases focusing on document summarisation, enterprise knowledge management, and search.
Additionally, Gen AI assistants are increasingly powering enterprise intranets, and companies are exploring Gen AI for customer-facing chatbots, enhanced user experience, coding assistants, and internal process automation.
Also read: Gen AI spending by enterprises to touch $200 bn by 2030, shows SaaSBoomi and McKinsey study
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