EY India Estimates 20% of Gen AI Experiments in Production, Foresees Fiscal 2025 Revenue Surge

Consulting firm EY India’s estimates reveal that approximately 20% of generative artificial intelligence (gen AI) proofs of concept (PoCs) in India transitioned into production during fiscal year 2024. Insights from EY’s analysis over the last two quarters also indicate that 15-20% of domestic enterprises and 30-40% of global capability centers (GCC) of multinationals have implemented gen AI PoCs.

Mahesh Makhija, EY India’s technology consulting leader, shared that while clients are actively experimenting with gen AI, scaled production deployments of use cases remain limited. However, Makhija anticipates that fiscal year 2025 will witness a surge in revenue driven by AI and gen AI initiatives, with Indian IT companies securing significant gen AI deals.

The upcoming fiscal year is expected to witness the deployment of AI agent bots in various sectors, including customer service, sales, underwriting, and collection. Makhija highlighted that AI agent bots have the potential to dramatically reduce business costs by 60-80%, particularly when leveraged across multiple use cases.

EY’s analysis identified successful gen AI PoCs in areas like document intelligence (e.g., underwriting document analysis), productivity assistance (e.g., transcribing patient-doctor interactions), and marketing automation.

Despite the promising prospects, challenges persist due to regulatory uncertainties and customer reluctance to commit to long-term projects amid concerns about data accuracy, bias, and privacy.

Makhija emphasized that businesses are cautious about investing in advanced large language models due to the high upfront costs. However, sectors such as financial services, healthcare, and IT services are leading the adoption of AI technologies, driving value uplift in delivery-related areas like application development, cloud migration, and infrastructure operations.

Looking ahead, Makhija anticipates increased coordination and organization in gen AI projects, paving the way for substantial advancements in AI adoption and deployment across industries.