Artificial Intelligence or AI is a field of Data Science that trains machines to learn from inputs, adjust to inputted fields and criteria, and perform tasks of computational logic that match certain human cognitive levels. Over the last few years, AI has emerged as a primary data science function – by utilising advanced algorithms and ever-increasing computing power. AI is transforming business domains and organisations as AI algorithms are now designed to make real-time decisions and interpret various types of data and media.
Analytics India Magazine (AIM), in association with TAPMI, has developed this study on the Artificial Intelligence market to understand the developments of the AI market in India, covering the market in terms of Industry and Company Type. Moreover, the study delves into the market size of the different categories of AI and Analytics start- ups/boutique firms.
The Artificial Intelligence technology function is no longer an emerging technology segment – AI as a function has pervaded almost all industries and functions – from eCommerce to BFSI and from
Manufacturing to Agriculture – Data Science and Deep Learning are increasingly utilised to solve complex business challenges. AI is increasingly utilised across several B2B, B2C, and, even, C2C (Consumer-to-Consumer) channels.
- AI is increasingly adopted across Contact Center Customer Services (RPA-driven Chat Bots), Media Delivery (ML and AI-driven Social Media, Streaming content, and eCommerce recommendations), and Intelligent Networks / Telecom Services, to name a few.
- AI adoption is no longer restricted to financial enterprises or large technology implementations or organizations. AI adoption in increasingly becoming democratized with personnel from non- technological backgrounds adopting AI processes in their functional roles.
- Machine Learning and AI technologies are central to the functioning of Smartphones, Smart TVs, Household Appliances, and Automobiles.
As revealed in the AI and Analytics start-up investment study for 2020 – 2021, the Data Science space in India, specifically the AI function, is evolving into an innovative enterprise segment. MNC Technology, Domestic, Advanced Engineering, Healthcare, and Semiconductor firms, to name a few, are now developing advanced Artificial Intelligence capabilities in India and providing top-notch AI services to firms across various industries and geographies – they are being rewarded with substantial investments by foreign and domestic funds.
Key Highlights
- The Indian Artificial Intelligence market is valued at $7.8 Bn as of July – August 2021. This represents a 22% increase in size of market over 2020.
- After the adoption of AI services in 2020 to ensure contactless payments and virtual banking services, the BFSI sector’s contribution to the AI industry has remained more or less constant.
- The market size covers revenues from all AI operations originating from India regardless of stakeholder or client type, type of firm providing AI services, and geography of client.
- The AI market share and size in relation to the Types of Companies is the highest across the broad MNC IT / Technology / Electronic category, which includes High-end Software and Hardware technology, IT Services, Semi-conductor, and Electronics firms. The combined market share is 32%, down from a market size of 36.2% in 2020.
- The market size by Industries or Sectors is the highest across the IT Services sector, followed by the Technology sector (including Software and Hardware firms), with a market share of 35% and 23.3% respectively.
- Apart from the IT and Technology sectors, the BFSI sector has a market share of AI services at 9.6%.
- There are close to 109000 Artificial Intelligence personnel working in India across enterprises and sectors – this represents a 20% jump in personnel from last year (91000 Artificial Intelligence personnel) – the median salary of the AI personnel is INR 14.3 Lakhs.
- The highest median salaries are drawn by AI professionals in Mumbai, at INR 17.3 Lakhs.
- Close to 14500 open positions related to AI are currently available to be filled in India, as of July – August 2021. Bengaluru, just as it does for other Data Science and IT services roles, tops the location for the highest proportion of open jobs.
The 2nd wave of the devastating pandemic has affected the AI sector overall – while contactless services are driving the need for AI services in sectors such as eCommerce and Healthcare.
Tanay Mukkawar