PwC Study Unveils Rapid Rise of AI Integration in Indian Businesses
- ByStartupStory | August 15, 2023
Following the COVID-19 pandemic, Indian businesses have significantly embraced AI, with the industrial products and manufacturing sectors exhibiting the highest adoption rates, according to a report by PwC titled ‘Towards a Smarter Tomorrow: Impact of AI in the Post-COVID Era’.
Over the past two years, the industrial products and manufacturing domains have experienced the most substantial adoption of AI/ML (artificial intelligence/machine learning). Approximately 64% of surveyed organizations in this sector consider themselves in the early stages of AI-driven transformation, indicating the potential for increased investments and growth driven by AI/ML solutions. PwC’s study, conducted in 2022-23, involved surveys with 220-plus CXOs and decision-makers in the Indian market, building upon a 2020 survey.
“While there has been a significant increase in AI adoption with scalable impact in terms of returns, trends indicate that the travel and hospitality industries have reached a degree of saturation,” the report said.
Further, the report said that while the technology, media, telecom, healthcare, and pharmaceutical sectors have seen steady progress, they are facing certain challenges around measuring the return on investments, especially in the pre and post-COVID-19 times.
“Compared to the other sectors, the retail and consumer market has seen a decline in AI adoption due to a gap in the identification of potential use cases amidst changing market forces and consumer behavior,” it added.
While AI adoption has expanded with notable returns, saturation has been observed in the travel and hospitality industries. Other sectors like technology, media, telecom, healthcare, and pharmaceuticals have made steady progress but face challenges measuring returns on investment, especially considering pre and post-COVID-19 scenarios. The retail and consumer markets have witnessed a decline in AI adoption due to shifting market dynamics and consumer behavior changes. In the industrial products and manufacturing sectors, AI/ML adoption has grown by 20% over the last two years, while travel and hospitality have shown a 7% increase. Around 99% of surveyed organizations have implemented AI/ML at scale in some areas.
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