New Delhi: A recent study conducted by global audit and consultancy firm Deloitte revealed that most Indian companies (two-thirds of the total respondents) are able to pay back on investment in artificial intelligence (AI) within two years.
Deloitte surveyed over 300 senior executives between April 2021 and July 2021 in India to know their organisations’ plans and approaches for adopting AI technologies.
The report suggested that two in every three pioneers said they were able to pay back their investments on AI within or earlier than the expected time period.
But before going deep into the article, we should know what AI is all about?
AI is the ability of a computer or a robot controlled by a computer to do tasks that are usually done by humans because they require human intelligence and discernment.
According to the current system of classification, there are mainly four primary types of AI — reactive, limited memory, theory of mind, and self-aware.
This study by Deloitte laid an additional emphasis on measures taken by AI leaders and global capability centres (GCCs) or to embrace AI for their business growth.
The report said, “Moreover, 72 per cent of pioneers and 61 per cent of respondents were able to pay back their AI investments within two years. Such quick break-even periods help ease concerns related to initial AI Investments, and give organisations the confidence to reinvest into successful AI initiatives.”
According to a NASSCOM report, AI could add $450-500 billion to India’s gross domestic product (GDP) by 2025, representing about 10 per cent of India’s $ 5-trillion economy aspiration.
A Deloitte-Nasscom joint study showed that India is currently home to more than 1,300 GCCs employing about 1.3 million people. These GCCs generated revenues of close to $33.8 billion in FY20 alone.
“Organisations in India are moving up the ladder from efficiency-focused AI use cases to the more strategic use of AI to transform their organisations and businesses. Deloitte’s ‘State of AI’ in India finds that the returns from AI investments are becoming more prominent, creating the need for a robust ecosystem of AI organisations, including industry, start-ups and academia among others,” Deloitte India Partner Prashanth Kaddi said.
The Deloitte-Nasscom findings also showed that GCCs invested $1.5 billion in Indian start-ups in 2019 and directly contributed $15 million to start-ups’ annual revenues by engaging more than 300 of them as vendors.