EY Report: Indian Startups and GCCs Embrace Generative AI Technology with Proactive Approach

In 2024, the state of generative artificial intelligence adoption in India is rapidly evolving, with enterprises at varying levels of maturity in adopting this cutting-edge technology, according to a report by EY India.

The report revealed that while domestic enterprises are carefully evaluating the functionality and reliability of gen AI, digital-savvy startups and global capability centers are moving swiftly in transitioning proofs of concept to production. In fact, 66% of India’s top 50 unicorns are already leveraging AI or gen AI technology, showcasing the proactive approach of startups in embracing AI compared to traditional players.

GCCs are also embracing gen AI for innovation, with 30-40% of POCs being rolled out to production. Their deep talent pool in AI and machine learning positions them as key players in unlocking AI-powered opportunities.

However, the report highlighted several challenges hindering widespread adoption of gen AI, including concerns around large language model responses, data privacy, sovereignty, and cost implications. Mahesh Makhija, partner and technology consulting leader at EY India, emphasized the need for enterprises to shift from ad hoc experiments to deploying ‘fit for purpose’ use cases for immediate impact and long-term transformation.

Among the most implemented gen AI use cases in India are intelligent assistants for executing point tasks, marketing automation, and document intelligence. Additionally, significant investments in AI are being made in early-stage companies across various sectors, indicating a diversification in the AI investment landscape.

To accelerate the adoption of gen AI, the report highlighted the importance of GPU infrastructure availability for training models and incorporating AI into applications. The government, large business groups, and startups are investing in building domestic GPU infrastructure to support enterprise adoption of gen AI.