AI to Increase Rate of Innovation by two times in India by 2021: Study

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According to the study, India needs to build upon its investment, strategy and data in order to quicken the pace of its AI journey

By 2021, artificial intelligence (AI) is likely to increase the rate of innovation and employee productivity by more than two-times in India, according to a latest study by Microsoft-IDC.

While 77 per cent of business leaders surveyed in India agreed that AI is instrumental for the competitiveness of their organisation, only one-third of them have embarked on their AI journeys. The organisations which have adopted AI expect it to enhance their competitiveness by 2.3 times in 2021, says the study.

Commenting on the findings, Dr Rohini Srivathsa, National Technology Officer, Microsoft India, said, “Today, every company is a software company, and increasingly, every interaction is digital. To be successful in this new world, organisations need to be fast adopters of best-in-class technology, including AI. In addition, they need to start building their own unique digital talent and ensure that all of this is based on trust and security.”

“AI is the defining technology of our time that significantly accelerates business transformation, enables innovation, boosts employee productivity, and ensures further growth. Economies and businesses that have yet to embark on their AI journey run a real risk of missing out on the competitive benefits that are enjoyed by leaders,” said Dr Srivathsa.

Major business drivers

According to the study, the top five business drivers for the organisations that have implemented AI initiatives were higher competitiveness, accelerated innovation, better customer engagement, higher margins and more productive employees.

Ranganath Sadasiva, Director, Enterprise, IDC India, commented, “Last year, organisations that have adopted AI saw tangible improvements in those areas in the range of 8 per cent to 22 per cent. They forecast further improvements of at least 2.1 times in the three-year horizon, with the biggest jump expected in higher margins, and higher competitiveness.”

“To succeed in AI race, India needs to substantially improve its readiness. Organisations’ leadership should make AI a core part of their strategy and develop a learning agility culture. They have to continuously invest in this transformative technology for the long-term success, sometimes without immediate returns,” Sadasiva said.

According to the study, the country needs to build upon its investment, strategy and data in order to quicken the pace of its AI journey. There is a need for cultural changes as well as skilling and re-skilling the workforce to make AI work for the country.

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