Generative AI (GenAI) is set to revolutionise India’s workforce by transforming 38 million jobs and driving substantial economic growth by 2030, according to a report by EY India.
The report highlights that GenAI adoption could enhance India’s economic productivity by 2.61 per cent in the organised sector, with an additional 2.82 per cent boost achievable if adopted widely by the unorganised sector.
The report identifies immense potential for GenAI across industries, with 24 per cent of tasks fully automatable and another 42 per cent improvable through AI augmentation.
This could save 8-10 hours per week for knowledge workers, enabling them to focus on higher-value activities. The services sector is expected to benefit the most due to its high labour share in gross output. Financial services, healthcare, and retail are predicted to see significant transformations in processes such as customer acquisition, operations, and service.
Meanwhile, IT/ITeS and BPO sectors will undergo substantial changes. However, industries like auto and pharma may see limited productivity gains, with a marginal increase of around 2 per cent.
Among specific business processes, call centre management is projected to achieve up to an 80 per cent productivity boost, while software development could see a 61 per cent increase.
Content development and distribution may grow by 45 per cent, customer service by 44 per cent, and sales and marketing by 41 per cent.
The report underscores a significant hurdle in the form of talent shortages. Only 3 per cent of Indian enterprises currently possess sufficient in-house talent to fully utilize AI capabilities, while 97 per cent of executives identify the lack of skilled talent as a critical barrier.
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Rajiv Memani, Chairman and CEO of EY India, said “GenAI is unlocking unprecedented opportunities across sectors, fundamentally reshaping jobs and driving innovation. To harness this potential, building talent pipelines and prioritizing upskilling must be at the forefront of every organisation’s agenda.”
Despite its promise, GenAI adoption in India remains in its early stages. The survey found that only 15 per cent of enterprises have implemented GenAI in full-scale production, while 34 per cent have completed proof-of-concept (POC) projects and 11 per cent are working on successful POCs. A significant 36 per cent of surveyed enterprises have yet to commence any experimentation.
While talent remains a challenge, falling AI deployment costs are helping ease adoption barriers. Mahesh Makhija, Technology Consulting Leader at EY India, said, “With falling costs and better ROI frameworks, India has an opportunity to position itself as a global leader in AI. By addressing challenges in governance and intellectual property, the country can amplify its economic growth and become a hub for AI-driven innovation.”
The report notes an 80 per cent reduction in foundational AI model costs over the past two years. Small and medium enterprises (SMEs), in particular, stand to benefit, with deployment costs now as low as Rs120 per hour, making AI increasingly accessible. (ANI)
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