New Delhi, NFAPost: According to a Nasscom study, India can democratise Artificial Intelligence (AI) and expand domestic adoption so that it will add $500 billion in Gross Value to the economy which is 10% of the $5 trillion GDP goal.
NASSCOM, in collaboration with the German Development Agency India GIZ, came up with a study on business opportunity in AI-as-a-Service (AIaaS) which combines the capabilities of Cloud and AI to enable deployments at scale.
The study happens at a time when AI can add significant economic value with respect to India. “To help AI deployments at scale and speed, more attention is needed towards the evolving AI adoption models that are shaping the marketplace, particularly,” states Nasscom study.
Commenting on the importance on AI, Arvian Research states that AI has been a game-changer for the ever-evolving world in almost all aspects.
“It is a reality that AI has emerged as the cornerstone for several businesses — both enterprises and startups. Amid the current pandemic business scenario and the world shifted to a remote working model, AI, IoT, and Big Data have played important role in enabling business continuity, helping companies sail through the crisis, recover, and thrive,” states Arvian Research.
It attempts to define AIaaS, its components and the various players that make up the ecosystem. The study also defines the AIaaS value chain and analyzes the overall adoption maturity in India.
Finally, the report ends with a sneak preview of what the future holds for India; collaboration, democratisation of AI mandate going beyond IT, addressing talent shortfall, and the emergence of Edge computing as a key enabler providing an opportunity for wider adoption.
Key Highlights
Cloud Computing and AI Are The Key Factors Driving Global AIaaS Adoption
Global AI market grew 45% in 2021, to reach $219 billion by 2025; Cloud Computing also kept pace, expanding at 55% between 2020 and 2021, fast-tracked by the Pandemic
AIaaS combines the capabilities of Cloud and AI to enable deployments at scale, to grow 5X to $41 billion by 2025
Mature Cloud technologies and emergence of 3rd party AI/ML tools are a perfect launchpad for AIaaS solutions
India Has Potential To Democratize AI And Expand Domestic Adoption
Add $500 billion in Gross Value to the economy which is 10% of the $5 trillion GDP goal
India has a mature technology ecosystem which is also the largest adopter of AI in India; also Retail, Banking and Manufacturing
Large SME base, particularly in Manufacturing which can drive the AI adoption wave in India
India has an annual supply of 300-320K AI & Big Data professionals in the Tech sector, while the demand is estimated to be 430-450K professionals; highlighting a shortfall of 130K.
Current AIaaS Models Gaining Traction In India
API-based Process Automation Solutions
Data Annotation Services ($7 billion potential for India)
ML Development (off-the-shelf, plug-and-play)
AI Managed Services (horizontal and vertical solutions)
AI-on-the-Edge (Inference-as-a-service, deployed on devices)
The Future Of AIaaS Is Bright In India
Market-driven collaboration initiatives between Technology majors/Large MNCs and niche, domain-specific AIaaS start-ups mainly in areas of joint GTM, product and solution development, and newer delivery models
Gradual adoption of Low-code-No-code and move towards phantomization to benefit businesses contemplating AI
Edge provides an opportunity for wider adoption; Integration of AI on Cloud and on the Edge is already underway
Addressing the challenges of ecosystem readiness, skillsets, technology, and innovation shall ensure India’s ascent as a global hub for AIaaS similar to the leading status in SaaS
