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Home»Business»India’s AI investment is set to outweigh digital technology spending and drive a financial impact of $115 billion by 2027: IDC Report
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India’s AI investment is set to outweigh digital technology spending and drive a financial impact of $115 billion by 2027: IDC Report

By March 2, 2025No Comments2 Mins Read
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The report predicts that by 2028, 75% of companies developing AI platform strategies that integrate a broader range of business functions will achieve greater value from their investments.

According to a recent report by International Data Corporation (IDC), AI investment in India is set to accelerate at a rate of 2.2 times the overall digital technology spending over the next three years, contributing to an estimated economic impact of over $115 billion by the end of 2027. The study emphasizes that by 2027, corporate executives will require at least 70% success rates for generation AI (Genai) projects to ensure operational efficiency and revenue growth.

“Planning investments in AI of all kinds are rising at a much faster level than the overall investment in digital technology. The strategies of major digital business organizations are focusing heavily on AI, as AI transforms and digital businesses are locked into HIP,” she emphasized that AI is rapidly becoming the main driver of India’s digital transformation.

The rise of AI and digital leadership

As businesses integrate AI into their core strategies, IDC Report predicts that by 2027, 40% of IT leaders will transition to business leadership roles and move technology to operational and business models. Companies with a well-integrated digital architecture triple the value they gain from their data and reduce the time it takes to achieve results by 20%.

However, the report also warns of potential hurdles. By 2027, approximately 55% of Indian organizations are expected to face a digital skill shortage, which could delay the timeline for AI implementation. Furthermore, by 2025, 80% of businesses may have an insufficient data management strategy, making it even more lagging behind in AI-driven business models.

AI-driven business models and future outlook

The report predicts that by 2028, 75% of companies developing AI platform strategies that integrate a broader range of business functions will achieve greater value from their investments. AI is no longer an enhanced digital transformation, it is a key pillar in redefineing business operations.

As AI continues to gain traction, Indian companies will need to navigate the challenges associated with skills shortages and data use in order to fully utilize the possibilities of AI-driven innovation. With an emphasis on operational efficiency and revenue growth, AI adoption is poised to reshape India’s digital economy over the next few years.

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