AI spending may triple to $5 bn by 2027

New Delhi: Fueled by talent growth and continued investment, the Artificial intelligence (AI) market in India is forecast to grow at 31.5 per cent CAGR (compound annual growth rate) to reach $5.1 billion by 2027, a new report showed on Tuesday. The AI software sector will be the primary driver of overall growth, reaching $2.6 billion by 2027, according to the report unveiled at 'Intel-AI For India' event.

The AI infrastructure spending is projected to reach $733 million in the same period. "With an unmatched talent pool, frugal innovation and data at scale, India stands poised to lead the global AI revolution. India's commitment to AI, underscored by its proactive approach, is driving transformative growth," said Santhosh Viswanathan, Vice President and Managing Director, India Region, Intel. AI spending in India is set to undergo the swiftest expansion among the eight examined markets - Australia, India, Indonesia, Japan, Korea, Malaysia, Singapore, and Taiwan.