Generative AI (GenAI) adoption is projected to revolutionize at least 38 million jobs in India by 2030, according to a report by EY India. This transformation is expected to drive a 2.61% productivity boost to the economy through gains in the organized sector and an additional 2.82% in the unorganized sector.
The report highlights that 24% of tasks across industries have the potential for full automation, while another 42% can be enhanced through AI, freeing up between 8-10 hours per week for knowledge workers. Rajiv Memani, Chairman and CEO of EY India, emphasized that this AI revolution will reshape jobs, driving productivity and innovation. He underscored the importance of building talent pipelines and prioritizing upskilling to stay ahead.
Fostering public-private collaborations and investing in talent development can position India as a global hub for AI-skilled talent, Memani added. The report identifies the services sector as the biggest beneficiary of productivity gains due to its higher labor share, while manufacturing and construction will see a smaller impact.
Despite the promising potential of AI, the survey reveals that adoption is still in its early stages. Only 15% of surveyed enterprises have implemented GenAI in production, with 34% having completed proof of concepts (POCs), and 11% working on productionalizing successful POCs. Enterprises are at varying stages of data readiness, with only 3% fully ready and 23% not ready at all.
The analysis of over 10,000 tasks across industries showed varying productivity gains, with call center management expected to see an 80% productivity enhancement, software development 61%, content development and distribution 45%, customer services 44%, and sales and marketing 41%.
In terms of sector-specific gains, IT/ITeS is expected to see a 19% productivity boost, followed by healthcare at 13% and banking/insurance at 8-9%.
Key Insights:
– **Jobs Impact**: 38 million jobs in India affected by GenAI by 2030.
– **Productivity Boost**: 2.61% in organized sector, 2.82% in unorganized sector.
– **Tasks Automation**: 24% full automation potential, 42% enhancement through AI.
– **AI Adoption**: Early stages with only 15% of enterprises in production.
– **Sector Gains**: Highest in services, with significant impact in IT/ITeS, healthcare, and banking.
India is on the cusp of an AI-driven transformation that promises to reshape its workforce and economy. Building talent and data readiness are crucial steps to fully harness this potential.
