September 22, 2023
1 min read

GenAI to generate $2.6-$4.4 trillion annually

The last 6-8 months have seen a rapid evolution in generative AI, with multiple releases across models, datasets and applications…reports Asian Lite News

Generative AI (GenAI) is expected to generate economic value worth $2.6-$4.4 trillion annually, of which around 75 per cent is expected to be concentrated in software engineering, customer operations, product and R&D, and sales and marketing, which are core service lines of many technology service providers in India, a new report showed on Thursday.

Emerging GenAI use cases will drive productivity, growth for tech services players with reimagined service offerings over next 5 years, according to the report by Nasscom in association with McKinsey & Company.

More than 100 generative AI use cases could potentially drive 15 to 20 per cent additional growth over five years and generative AI could further improve delivery productivity by 30 per cent in the next two-three years, the findings showed.

The last 6-8 months have seen a rapid evolution in generative AI, with multiple releases across models, datasets and applications.

“The generative AI space will continue to evolve with the trajectory of technology service providers being reshaped and new capabilities emerging. Providers are re-evaluating their approaches based on new insights and many are intensifying their investments in areas like technology, talent, risk management, and even mergers and acquisitions with generative AI startups,” explained Sangeeta Gupta, Senior Vice President, and Chief Strategy Officer at Nasscom.

With GenAI, the general and administrative costs (G&A), inclusive of sales, are predicted to see a 40 per cent surge in productivity over the next three years, supported by functions like finance and accounting, legal and HR.

Generative AI brings both tailwinds and headwinds for technology service providers, with the impact determined by the existing service line and vertical mix, as well as an interplay of drivers and the speed of adoption, the report mentioned.

“It holds the promise of a step change in productivity and unlocking multiple new revenue pools for providers. Early movers are positioned to emerge as frontrunners in this dynamic industry’, said Ankur Puri, Partner, McKinsey & Company.

ALSO READ-‘AI Could Add $1 Trillion to India’s Economy’

Previous Story

India, US, UAE, Israel launch I2U2 Private Enterprise Partnership

Next Story

OpenAI launches upgraded version of ‘Dall·E 3’

Latest from -Top News

Sikh Community Pays Rich Tributes to Pope 

UAE Sikh community mourns Pope Francis, honoring him as a global symbol of faith and compassion…reports Asian Lite News The Sikh community of the United Arab Emirates extends heartfelt condolences on the

India Praises UAE’s Global AI Benchmark 

Kaustubh Dhavse, Maharashtra CM’s OSD, hailed the UAE’s AI model as a global benchmark driving digital innovation and attracting global talent…reports Asia Lite News Kaustubh Dhavse, Joint Secretary and Officer on Special

Azad Moopen Pays Tribute to Pope Francis 

Dr. Moopen also noted Pope Francis’ historic 2019 visit to the UAE, a landmark moment in fostering interfaith dialogue and tolerance…reports Asian Lite News Dr. Azad Moopen, Founder Chairman of Aster DM
Go toTop

Don't Miss

GenAI to help 60% of Asia’s top firms boost worker retention

Business teams using code generation copilots will achieve a 70

Indian Tech Leaders Embrace GenAI with Caution

To adapt and empower the workforce with the necessary skills