Generative AI (GenAI) is poised to revolutionize India’s workforce and economic landscape, potentially transforming 38 million jobs and boosting productivity by 2.61% in the organized sector by 2030, according to a new EY India report, “The AIdea of India 2025.” The report highlights the transformative potential of GenAI across industries and identifies key challenges to unlocking its full impact.
EY’s analysis reveals that GenAI could automate 24% of tasks across industries and enhance another 42%, freeing up 8–10 hours per week for knowledge workers. Sectors like IT/ITeS, financial services, and healthcare are predicted to experience significant productivity gains. For instance, call center operations could see an 80% boost in efficiency, while software development could achieve a 61% improvement.
However, adoption remains in its infancy, with only 15% of surveyed Indian enterprises having deployed GenAI in production. An additional 34% have completed proof-of-concept projects, while 36% have yet to experiment with the technology. Data readiness and talent shortages remain critical barriers, with just 3% of enterprises reporting full readiness for AI integration and 97% citing a lack of skilled talent as a primary challenge.
Rajiv Memani, Chairman and CEO of EY India, emphasized the importance of developing talent pipelines and fostering public-private partnerships to position India as a global AI leader. “Building talent pipelines and prioritizing upskilling must be at the forefront of every organization. By investing in talent development, India can become a global hub for AI-skilled professionals,” he said.
The report also highlights the falling costs of AI technology as a key enabler for wider adoption. OpenAI’s GPT API prices have dropped by 80% over the past two years, and new innovations, such as purpose-specific small language models, have made AI solutions more accessible for small and medium enterprises. With deployment costs as low as INR 120 per hour, AI is becoming increasingly affordable for businesses of all sizes.
Mahesh Makhija, Technology Consulting Leader at EY India, noted that the transformative potential of GenAI extends beyond automation. “AI will reshape processes in industries such as healthcare, financial services, and retail while enabling next-generation industries like biotech and renewables to adopt AI-first business models. To fully harness these opportunities, India must address challenges in AI policy, infrastructure, and governance,” Makhija said.
Despite its promise, the report warns of significant hurdles, including gaps in responsible AI governance, data privacy, and intellectual property rights. EY recommends that enterprises adopt clear strategies, pilot use cases, and focus on reskilling the workforce to maximize GenAI’s potential.
India’s policy landscape will also need to evolve to support the GenAI revolution. The government’s Digital Personal Data Protection Act (2023) and initiatives like the IndiaAI Mission aim to create a conducive environment for AI innovation while safeguarding ethical standards.
The report concludes that while challenges remain, GenAI offers unprecedented opportunities to enhance productivity, drive innovation, and ensure economic growth. With targeted investments in skills, infrastructure, and governance, India is well-positioned to lead the next wave of AI-driven transformation.
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