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

US government shuts down, early deal unlikely

A bitter funding clash between President Trump and Democrats has triggered a government shutdown, paralysing services, fuelling partisan blame, and reviving fears of prolonged political dysfunction. The United States has entered a

PLA at 76: The Party’s Army, Not the People’s

At 76 years old, the PLA continues to exemplify how authoritarian regimes pervert military institutions, creating forces that serve narrow political interests rather than constitutional democracy, writes Major General RPS Bhadauria (Retd)

Why China’s National Day is no celebration for Asia

Whilst China’s leadership celebrates another year of Communist rule, Asia’s democracies are tallying the mounting costs of Beijing’s repressive policies at home and aggressive adventurism abroad, writes Colonel Danvir Singh (Retd) As

Trump’s 20 points to peace in Gaza

Trump unveils 20-point Gaza peace plan with Netanyahu’s backing, offering hostages’ release, technocratic rule, and global oversight, as Hamas faces pressure to accept or risk further war. US President Donald Trump has

Trump Urged to Back Baloch Rights in Pakistan

The letter urged President Trump to recognise the Baloch people’s right to self-governance and to raise his voice against the alleged atrocities committed by the Pakistani military…reports Asian Lite News In a
Go toTop

Don't Miss

1 in 4 Firms Ban GenAI: Report

Most firms are limiting the use of Generative AI (GenAI)

Indian Tech Leaders Embrace GenAI with Caution

To adapt and empower the workforce with the necessary skills