Summary:

EY India predicts that Generative Artificial Intelligence (GenAI) adoption will boost productivity in India's Rs. 22,21,230 crore (US$ 254 billion) software sector by 43%-45% over the next five years. This growth stems from IT firms integrating GenAI internally and expanding client initiatives. Companies like Tata Consultancy Services and Infosys report that 89% of their clients are testing GenAI, with 33% already in production, reflecting strong industry confidence in AI's potential.

Software development is expected to see the highest productivity increase at 60%, followed by BPO services (52%) and IT consulting (47%). These three segments will contribute 50%-60% of the overall productivity growth in tech services. AI adoption is enhancing efficiency, reducing costs, improving customer service, and driving revenue growth. This transformation positions AI as a key driver in shaping the future of India's IT industry.

Source: IBEF

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