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Indian AI Expenditure Is Expected To Touch $6 Billion in 2027: IDC Report The report shared developing global and local trends and also highlighted India's potential to become a world leader in modern technologies such as Artificial Intelligence and GenAI

By Paromita Gupta

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International Data Corporation (IDC) projected tremendous growth for the Indian technological landscape—Artificial Intelligence growth and spending in India will reshape the Industries with heavy AI adoption.

According to the report, Indian AI expenditure is expected to touch USD 6 billion in 2027 growing at a CAGR rate of 33.7 per cent from 2022 to 2027. Additionally, global AI spending is expected to hit USD 512 billion by 2027, more than double what has been spent in 2024.

The report shared developing global and local trends and also highlighted India's potential to become a world leader in modern technologies such as Artificial Intelligence and GenAI.

"India is the sleeping giant in Generative AI. Its scale, expertise, and startup ecosystem are poised to revolutionize AI both locally and globally," said Dr. Christopher Marshall, Vice President of Data, Analytics, AI, Sustainability, and Industry Research, IDC Asia/Pacific.

"This AI Moment is not a one-hit wonder. Its implications for India are profound, influencing cultural and business model transformations, with data emerging as the most valuable asset," said Linus Lai, Vice President of Digital Business, IDC Asia/Pacific.

Furthermore, the IDC predicts that by the year of 2025, we will see a huge digital transformation in the industries of India.

Approximately 40 per cent of service engagements will leverage GenAI changing service delivery in strategy, change management, and training to prepare organizations for AI integration. It also recommended that while industries are digitally transforming internally, Indian service providers should always consider providing value to their customers needs, including proper customer support through their own AI transformations.

Paromita Gupta

Entrepreneur Staff

Features Writer with Entrepreneur India

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at 
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