Artificial Intelligence (AI) is here and set to reshape the way India works and simultaneously grows. A recent report by EY India suggests that AI could transform 38 million jobs in the country by 2030 and this to bring a significant productivity boost to organized as well as unorganized sectors. The potential is undeniable and the road to achieve the transformation is straightforward.

The report highlights that generative AI (GenAI) could lead to a productivity gain of 2.61% in the organized sector equipped with an additional 2.82% boost possible in the unorganized sector.

Call center management is expected to witness a productivity jump by 80% and software development by 61%. Content creation, customer service, sales and other such areas to also benefit significantly. However, industries like automotive and pharma might only experience a modest 2% boost.

The services sector contributes significantly to India’s GDP and said to gain the most. Industries like IT/ITeS, healthcare and financial services are expected to undergo transformative shifts. However, the journey won’t be easy.

The EY report reveals that just 3% of Indian enterprises have the in-house expertise needed to leverage AI fully and this is alarming as 97% of businesses cite talent shortages and it is a major roadblock.

EY India Chairman and CEO Rajiv Memani emphasized the importance of upskilling. India has the chance to harness AI for domestic growth and become a global hub for AI talent.

Adoption is still in its early stages and many companies are experimenting with proof-of-concept projects. However, only a small fraction has moved to large-scale implementation. A surprising 36% of enterprises have not yet started exploring AI. The lack of readiness coupled with difficulties in measuring ROI is holding back progress.