GenAI to boost India’s IT productivity by 45%: EY India
NEW DELHI, INDIA — Generative artificial intelligence (GenAI) is poised to significantly enhance productivity in India’s IT industry, potentially increasing efficiency by 43%-45% over the next five years, according to a recent EY India survey.
This surge will be driven by the internal adoption of GenAI tools and the shift of client projects from proof-of-concept stages to full-scale production.
Software development, BPO, and IT consulting to lead gains
EY India’s findings highlight that roles in software development will see the highest productivity boost of 60%, followed by business process outsourcing (BPO) services at 52%, and IT consulting at 47%.
Together, these three areas are expected to account for 50%-60% of the overall productivity improvements in the tech sector.
Top IT firms drive GenAI adoption
Leading Indian IT firms such as Tata Consultancy Services (TCS) and Infosys are already leveraging GenAI for client projects. According to EY India, 89% of clients have trialed GenAI initiatives, with 33% moving them into production.
“Enterprises are moving beyond experimentation to putting AI into production at scale. The rapid transition from POC to enterprise-wide adoption reflects the industry’s confidence in AI’s potential,” said Abhinav Johri, Technology Consulting Partner at EY India.
Broader benefits of GenAI integration
The adoption of GenAI is not limited to productivity gains. The technology also enables enhanced customer service, cost reduction, and improved revenue growth.
By automating repetitive tasks and providing advanced analytics capabilities, GenAI is helping Indian enterprises make better decisions and remain globally competitive.
Challenges and opportunities in scaling GenAI
While the potential for growth is immense, scaling GenAI comes with challenges. EY India emphasizes the importance of robust infrastructure, governance frameworks, and talent development to ensure responsible implementation.
Ethical considerations, such as data privacy and algorithmic bias, will also need to be addressed as companies expand their AI initiatives.
A pivotal moment for India’s IT landscape
The integration of generative AI marks a transformative phase for India’s IT industry. With AI-powered automation driving innovation across sectors, Indian enterprises are well-positioned to capitalize on this technological shift.
As more projects move from experimentation to production, the industry is set to achieve unprecedented levels of efficiency and growth.
