By 2021, Artificial intelligence (AI) will accelerate the rate of innovation in India by more than two times, according to a study by Microsoft and IDC.
The study— “Future Ready Business: Assessing Asia Pacific’s Growth Potential Through AI”, surveyed 200 business leaders and 202 workers in India. It found that AI will significantly contribute to innovation in the country, by boosting the rate of innovation at organizations by 2.2 times, and employee productivity by 2.3 times.
“Today, every company is a software company, and increasingly, every interaction is digital. To be successful in this new world, organizations 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 organizational culture. It sets the stage for agility, adaptability and growth,” she added.
While 77% of the respondents said that AI has helped their organizations to stay competitive, but only 33% of Indian organizations have started their AI journey. The organizations that have adopted AI expect their competitiveness to increase by 2.3 times in 2021.
Around 64% of business leaders and 63% of workers considered that AI adoption in organizations will either improve their existing jobs or lower repetitive tasks.
“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 the 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.
India needs to build upon its investment, data and strategic planning to speed up its AI journey, according to the report. The study also pointed up the need for cultural changes and skilling or re-skilling the existing workforces to accelerate AI in the country efficiently.
“Business leaders must now embrace a new culture, where innovation and continuous learning are core components of the organizational culture. It sets the stage for agility, adaptability and growth,” said Dr. Srivathsa.
The three main challenges of business leaders who are adopting AI included:
- a lack of advanced analytics or necessary infrastructure and tools to build actionable insights
- data strategy and data readiness are not considered strategic priorities
- lack of thought leadership and commitment to AI investment.
In March this year, Microsoft also opened an AI Business School to encourage business leaders to lead with confidence in the era of AI.
Find the full report here.