India's Artificial Intelligence (AI) spending will grow from US $300.7 million in 2019 to US $880.5 million in 2023 at a CAGR of 30.8% according to IDC's Worldwide Artificial Intelligence Spending Guide Forecast.

 

"COVID-19 is pushing the boundaries of organizations' AI lens. Businesses are considering investments in intelligent solutions to tackle issues associated with business continuity, labor shortage, and workspace monitoring. Organizations are now realizing that their business plans must be closely aligned with their AI strategies," said Rishu Sharma, Principal Analyst, Cloud and AI at IDC in India.

 

The key highlights of the report are: Enterprises rely on AI to maintain business continuity, transform how businesses operate and gain competitive advantage; Almost 20% of enterprises are still devising AI strategies to explore new businesses and ventures; Half of India enterprises plan to increase their AI spending in 2020.

 

Data trustworthiness and difficulty in selecting the right algorithm, are some of the top challenges that hold organizations back from implementing AI technology.

 

“The variety of industry-specific tech solutions supported by emerging technologies like IoT, Robotics, Blockchain, etc. are getting powered by complex AI algorithms and are cloud-enabled to reach their max potential. In India BFSI and Manufacturing verticals are the two biggest spenders of AI across different use cases making almost 37% of the AI spending in 2019,” said Ashutosh Bisht, Senior Research Manager for IDC's Customer Insights and Analysis group.

 

“With the fast adoption of cloud technologies in India, more than 60% of AI Applications will be migrated to the cloud by 2024,” added Sharma.