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Significant Increase in Optimism Around AI in Indian Organisations

Over 90 percent of enterprises surveyed are implementing or planning to invest in AI solutions to address current business concerns

AI has gone up significantly from 72% to 92%, and then 45% of Indian organisations have increased the use of AI post-Covid-19. Further, 94% of the respondents claim they have either implemented or are planning to implement AI in their organisations.

ai adoptionPwC India’s survey suggests that around 70% of enterprises have implemented AI in some form in one or more functional areas compared to around 62% last year

Travel and hospitality (89%) have taken the lead in AI adoption, followed by TMT (86%), financial services (82%), and healthcare and pharma (73%).

industry aiThe Covid-19 pandemic has accelerated the adoption of advanced analytics and AI around the world. According to a report launched by PwC India titled, ‘AI: An opportunity amidst a crisis’, India noted the highest increase in the use of AI as compared to major economies (the US, UK and Japan), with over 70% of Indian enterprises having implemented AI in some form in one or more functional areas compared to around 62% last year. The report also highlights that there is an increased importance of AI in Indian organisations and in driving revenues, optimising costs or managing risks.

Commenting on the study, Sudipta Ghosh, Partner and Leader- Data and Analytics, PwC India said, “The far-reaching consequences of the global pandemic have driven organisations to balance the competing priorities of safeguarding the health and ensuring business continuity. AI is now regarded as a key enabler for organisations to repair (emerge from the present crisis), rethink (plan for transformation) and reconfigure (make fundamental changes to the operating model for lasting competitive advantage).

To get the best out of AI, businesses need to start viewing it as a necessity rather than luxury and weave it into the fabric of the enterprise. In developing countries like ours, improving demand may be a potentially more relevant benefit than savings through automation. Hence, given the availability of a large pool of skilled resources, AI efforts need to be directed towards complementing human capabilities and helping businesses prepare for the future,” he added.

The survey also reveals a shift like inhibitors from technical to business as organisations that were primarily focusing on pilots and proofs of concept (PoCs) are now attempting to scale up these solutions at the enterprise level.

The change in the nature of inhibitors signals an improvement in the maturity and willingness of organisations in terms of adopting AI as a tool for achieving business outcomes.

post of covid 19However, organisations adopting AI applications often face multiple challenges and fail to realise the optimum value from their AI investments. For instance, 37% of organisations find it challenging to identify the right use cases for AI implementation and 28% of enterprises lack high-quality data for use in AI solutions. Through the report, PwC India recommends a structured approach towards implementing AI to help overcome these challenges.

The increased adoption of AI can be attributed to the following factors:

  • Post COVID-19, AI-enabled use cases like contactless selling and delivery have gained traction due to changes in buying behaviour.
  • As organisations are reopening their manufacturing and office locations, AI-enabled tools are helping them enforce best practices from a health and safety perspective.
  • The remote workforce is relying more on AI-enabled digital assistants to do their work without loss of productivity.
  • As past knowledge and experience may fail to provide the right insights in these times of disruption, organisations are increasingly making decisions based on current data using AI-enabled predictive and prescriptive tools.
  • To reduce the cost of doing business, combat disruption and become future-ready, organisations are adopting AI-based digital twins and synthetic data. This is also enabling them to build resilient ecosystems (e.g. supply chain and operations).

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Aishwarya Saxena

A book geek, with creative mind, an electronics degree, and zealous for writing.Creativity is the one thing in her opinion which drove her to enter into editing field. Allured towards south Indian cuisine and culture, love to discover new cultures and their customs. Relishes in discovering new music genres.

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