At least 89% of Indian technology service enterprises have initiated generative AI (GenAI) proof-of-concept (POC) projects, with 33% already in production, according to a report released on Monday.
Artificial Intelligence (AI) is fundamentally reshaping India’s software services industry, driving innovation, efficiency, and new business models, stated EY India in its report. AI investments are surging, with 78% of organizations having dedicated budgets and strategies for GenAI implementation.
The technology services sector is poised to witness a 43-45% productivity boost across more than 500 roles by 2030. Furthermore, 44% of those surveyed recognize AI’s role in enhancing customer satisfaction, while 28% link it to revenue growth.
“Enterprises are moving beyond experimentation to putting AI into production at scale. The rapid transition from POC to enterprise-wide adoption reflects the industry’s confidence in AI’s potential,” said Abhinav Johri, Technology Consulting Partner at EY India. He added that scaling AI responsibly through robust infrastructure, governance, and talent development will be key to unlocking its full economic impact and strengthening India’s competitive edge in the digital era.
Roles in software development are expected to see approximately 60% productivity improvement, while those in BPO services and IT consulting could witness around 52% and 47% improvement, respectively. These three areas are anticipated to account for 50% to 60% of overall productivity enhancement in technology services.
Organizations have prioritized specific areas for GenAI implementation: around 56% focus on development, 39% emphasize operations, 28% prioritize quality testing, and 22% concentrate on designing and prototyping as well as integration and deployment.
