AI To Increase Rate Of Innovation In India By 230% In Two Years: Study
By 2021, artificial intelligence will more than double the rate of innovation at organisations (x2.2 times) and employee productivity (x2.3 times) in India, according to the country’s business leaders. A study by Microsoft and IDC Asia/Pacific called Future Ready Business: Assessing Asia Pacific’s Growth Potential Through AI, surveyed 200 business leaders and 202 workers in India.
The survey – conducted with 1,560 business decision makers in mid and large-sized organisations across 15 economies in the region – highlights that while 77% of business leaders polled agreed that AI is instrumental for their organisation’s competitiveness, only one-third of organisations in India have embarked on their AI journeys. Those companies that have adopted AI expect it to increase their competitiveness by 2.3 times in 2021.
The findings were released by Rohini Srivathsa, National Technology Officer, Microsoft India and Ranganath Sadasiva, Director, Enterprise, IDC, in the presence of Girish Nayak, Chief – Service, Operations & Technology, ICICI Lombard General Insurance Company Ltd.
“Today, every company is a software company, and increasingly, every interaction is digital. To be successful in this new world, organisations need to be a fast adopter of best-in-class technology; and secondly, they need to build their own unique digital capabilities,” said Dr Rohini Srivathsa, National Technology Officer, Microsoft India. “Economies and businesses that have yet to embark on their AI journey run a real risk of missing out on the competitive benefits that are enjoyed by leaders. Businesses must now embrace a new culture, where innovation and continuous learning are core components of the organisational culture. It sets the stage for agility, adaptability and growth,” she added.
Last year, organisations that have adopted AI saw tangible improvements in those areas in the range of 8% to 22%. They forecast further improvements of at least 2.1 times in the three-year horizon, with the biggest jump expected in higher margins, and higher competitiveness.
Showcasing a new solution that deploys AI to process vehicle insurance claims and renew policies more efficiently, Girish Nayak, Chief – Service, Operations & Technology, ICICI Lombard General Insurance Company Ltd – one of India’s leaders in implementing AI in the BFSI space – added, “We recognised the potential of AI in providing high-quality car damage evaluation services. With data being generated at an exponential level, this technology will help us derive insights to inspect and process claims with utmost efficiency. Using Microsoft’s AI expertise is helping us bring about this transformation, allowing us to meet customer demands quicker without compromising on service excellence.”
The study evaluated six dimensions critical to ensuring the success of a nation’s AI journey. According to the findings, India needs to build upon:
- Investment
- Data
- Strategy
- Adapt to cultural changes
- Skill workforce
- Reskilling employees
“To succeed in the AI race, India needs to substantially improve its readiness. Leaders should make AI a core part of their strategy and develop a learning agility culture. Investment in this transformative technology has to be continuous for long-term success. There is an urgent need for talents and tools to develop, deploy and monitor AI models, along with the availability of a robust data estate with the adequate governance,” according to Ranganath Sadasiva, Director, Enterprise, IDC.
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