EY India reports a significant rise in generative AI implementations, with 20% of proof-of-concept projects moving into production in fiscal year 2024. This trend signals a growing confidence in GenAI’s potential to transform Indian businesses.
From Experimentation to Implementation
While experimentation with GenAI remains widespread, EY India’s analysis reveals a notable shift towards real-world applications. Approximately 15-20% of Indian enterprises and 30-40% of global capability centers (GCCs) have deployed GenAI PoCs, marking a turning point in the adoption of this transformative technology.
FY25: Poised for Revenue Growth and Large-Scale Deployments
Mahesh Makhija, technology consulting leader at EY India, predicts that fiscal year 2025 will witness a surge in revenue driven by AI, GenAI, and data management initiatives. This growth is expected to translate into sizable GenAI projects for the Indian IT sector, as companies move beyond experimentation to coordinated and impactful implementations.
AI Agent Bots: Revolutionizing Customer Service and Beyond
EY India anticipates the deployment of sophisticated AI agent bots in fiscal year 2025 across various domains, including customer service, sales, underwriting, and collection. These bots are poised to deliver significant returns on investment, potentially reducing business costs by 60-80% and streamlining operations.
Document Intelligence and Productivity Assistance: Early Success Stories
EY India’s findings highlight specific areas where GenAI is already demonstrating tangible value. Document intelligence, particularly in financial services and sales, is witnessing successful deployments, with AI bots efficiently extracting information and generating insightful responses. GenAI is also proving effective in productivity assistance, such as transcribing patient-doctor interactions in healthcare settings.
Challenges Remain: Regulatory Uncertainty and Data Concerns
Despite the positive momentum, challenges persist. Regulatory uncertainty surrounding GenAI, coupled with customer concerns regarding data accuracy, misinformation, bias, security, and privacy, are hindering widespread adoption.
Hesitation to Commit: Balancing Costs and Benefits
The high cost of accessing advanced large language models, essential for building custom GenAI solutions, is also contributing to hesitancy among businesses. As many companies are still in the experimental phase, they are reluctant to commit to long-term projects and substantial upfront investments.
EY India’s report paints a promising picture of GenAI’s growing presence in India. While challenges remain, the increasing number of production deployments signifies a decisive step towards harnessing GenAI’s transformative potential to reshape Indian businesses.
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