Generative AI to Boost Indian Software Productivity by 43-45%
India's software industry, valued at $254 billion, is poised for significant productivity gains due to the growing adoption of Generative Artificial Intelligence (GenAI). A survey by consulting firm EY India projects a 43-45% boost over the next five years.
This productivity enhancement, encompassing 500 job roles, stems from the dual impact of GenAI integration within the IT industry and the migration of client projects from proof of concept to production.
Leading IT giants like Tata Consultancy Services and Infosys underscore the client demand for AI in new projects. EY India's survey reveals that 89% of these companies are experimenting with GenAI, with 33% already deploying it in production.
"Enterprises are transitioning from experimentation to large-scale AI implementation," asserts Abhinav Johri, Technology Consulting Partner at EY India. "The swift shift from proof of concept to enterprise adoption signifies the industry's trust in AI's transformative potential."
Within the vast IT sector, software development roles will witness the highest productivity gain (60%), followed by BPO services (52%) and IT consulting (47%). Together, these three domains will contribute 50-60% of the overall productivity improvement.
Beyond customer service enhancements, the escalating use of AI in the IT industry also reduces costs and fosters revenue growth, as reported by surveyed executives.