The Impact of Generative Artificial Intelligence on India's IT Industry

According to a survey conducted by consultancy firm EY India, the use of generative artificial intelligence (GenAI) in the next five years could significantly boost the productivity of software in India. It is projected that productivity could rise by 43-45% due to a dual effect.

The dual effect mentioned in the EY India survey includes:

1. Implementation of GenAI within companies

   - IT companies will proactively integrate elements of generative artificial intelligence to optimize their internal processes.

2. Growth of client projects

   - More projects utilizing GenAI will move from the proof-of-concept stage to the production stage.

Dynamics of the Technological Market

Leading IT companies such as Tata Consultancy Services $TCS.NS and Infosys $INFY.NS emphasize that clients are increasingly using AI to realize their projects. According to EY India:

- 89% of clients have started testing projects using GenAI.

- 33% of these projects have already been deployed to production.

The growth and adoption of GenAI are being driven by:

- Continuous innovation: IT companies are actively developing new technologies and services based on generative AI.

- Client demand: There is an increasing demand from clients for AI-based solutions, stimulating the market to integrate these technologies.

Advantages and Challenges

Utilizing generative artificial intelligence brings numerous benefits:

- Increased productivity: Optimization and automation of processes significantly improve workflow efficiency.

- Cost reduction: Implementing GenAI helps companies lower operational costs by automating routine tasks.

Despite the evident benefits, the implementation of GenAI faces several challenges:

- Complexity of integration: The process of incorporating new technologies requires substantial effort and investment.

- Skills requirements: There is a need for training employees in new skills and abilities related to AI usage, which can be a barrier to widespread adoption.

The transition to using generative artificial intelligence marks a crucial phase in the development of India's IT industry. The dual effect of its application, the increase in productivity, and the growth of AI projects create significant prospects for further technological progress. Leading IT companies continue to invest in GenAI-based developments, helping them remain competitive in the global market.