Hamburger icon
Close Icon

AI Adoption Index 2.0: Tracking India’s Sectoral Progress in AI Adoption

The 2024 AI Adoption Index 2.0 highlights the significant advancements and opportunities in India's AI landscape amid rapid AI technology evolution. This study offers in-depth insights into the AI adoption trends across seven sectors and 500 surveyed companies assessed on a nine-dimensional AI adoption framework.

DOWNLOAD PDF
Product Image

Key Findings

India’s AI market is growing rapidly and has strong support tailwind
  • India’s AI market is expected to grow at a 25-35% CAGR by 2027. 
  • Strong national-scale support pillars have emerged in promoting AI adoption – IndiaAI mission, supportive policy framework, AI and GenAI-ready tech services, AI-focused startup ecosystem, and the 2nd largest installed AI talent base. 
  • Rapid digitalization by enterprise users – 70% spend over 20% of IT budgets on digital.
The 2024 AI Adoption Index 2.0 is bigger and differentiated compared to the 2022 Index 1.0
  • Coverage across seven sectors representing 75% of India’s GDP, 500 companies, and nine dimensions, compared to four sectors, 315 companies, and six dimensions in 2022.
  • Index 2.0 assesses enterprise AI execution ability over strategic planning alone.
  • Index 2.0 focuses on pushing the objective of “Building Scale with AI”.
India’s aggregate 2024 AI maturity is at the Enthusiast stage with a score of 2.47
  • 87% companies are in the middle stages of Enthusiast and Expert AI adopters.
  • 2X rise in the number of companies in the Expert stage indicating significant progress.
  • Factors that have improved – data standardization, modernization of tech stack, Cloud adoption, and more formalized AI risk and ethics frameworks.
  • Factors that need urgent attention – consistent leadership commitment driving up budgets and execution discipline, use case selection, and AI-led innovation
Manufacturing and telecom, media and entertainment (TM&E) companies have moved to the Expert stage
  • Manufacturing led by automotive and electronics, while TM&E sector maturity is driven by digital-native business models.
  • Sectors generally struggle with AI use case identification, while some leapfrog to PoC and production rapidly.
  • More mature sectors have central IT teams leading AI efforts.
  • Healthcare, a data-sensitive sector, majorly lacks these AI risk management frameworks.
Large and SMB companies need differentiated approaches to building scale with AI
  • Both need certain common strategi actions to leapfrog from AI-ready to AI-first.
  • Large enterprises should prioritize data standardization, strategic partnerships, swift PoC-to-production, balanced AI use for both efficiency and innovation, and risk-managed sustainable AI strategies.
  • SMBs should emphasize contextual use cases, partnerships with tech SMEs, strong leadership drive, knowledge of data regulations, and peer learning to overcome adoption barriers.

Get The Report

Download the report and get detailed insights on the sector.

Regular Price : Free Download
Member Price : Free Member Login

Nasscom Members- Login to download the report

Related Reports

AI Adoption Index 2.0: Tracking India’s Sectoral Progress in AI Adoption

AI Adoption Index 2.0: Tracking India’s Sectoral Progress in AI Adoption

The 2024 AI Adoption Index 2.0 highlights the significant advancements and opportunities in India's AI landscape amid rapid AI technology evolution. This study offers in-depth insights…

Emerging Tech
Free for All
Advancing India’s AI Skills: Interventions and Programmes Needed

Advancing India’s AI Skills: Interventions and Programmes Needed

The Indian AI market is projected to grow at 25-35% CAGR through 2027 and this has triggered the need for relevant AI skills in the market. This study presents a point of view on…

Emerging Tech
Free for All
Generative AI Tracker: Tech Industry Activity

Generative AI Tracker: Tech Industry Activity

Nasscom is releasing first of its kind Generative AI Tracker for Tech Industry. The Analysis is based on announcements made between January 2024 to June 2024 by a subset of leading…

Emerging Tech
Free for All
State of Data Science & AI Skills in India – Data and the Art of Smart Intelligence

State of Data Science & AI Skills in India – Data and the Art of Smart…

Riding on the positive spending growth trends in AI, there has been a spurt in the demand for professionals which has doubled in the past 3-5 years. The surge in demand for Data…

Free for All
The NASSCOM AI Adoption Index

The NASSCOM AI Adoption Index

Investments in Artificial Intelligence in India is still a small percentage (~1.5%) of the total worldwide spend. However, given its transformative nature and the rapid strides India…

Free for All
close