India's AI market to touch $7.8 billion by 2025
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The artificial intelligence (AI) market in India is expected to grow at a five-year compound annual growth rate (CAGR) of 20.2 percent and touch USD 7.8 billion in total revenues by 2025, according to research firm IDC.
The businesses in India will accelerate the adoption of both AI-centric and AI non-centric applications for the next five years, IDC said in a statement.
AI software segment is expected to dominate the market and grow from USD 2.8 billion in 2020 at a CAGR of 18.1 percent by the end of 2025, IDC said.
Organisations are leveraging multiple AI applications such as CRM, ERM and others to manage operations, scale supply chains in response to real-time or predicted demands and many more to provide benefits for their customers, improve RoI (return on investments) and achieve cost savings, it added. "Indian organisations plan to invest in AI to address current business scenarios across functions, such as customer service, human resources (HR), IT automation, security, recommendations, and many more. Increasing business resilience and enhancing customer retention are among the top business objectives for using AI by Indian enterprises," IDC India Associate Research Director (Cloud and AI) Rishu Sharma said.
