Startups Outpacing Legacy Firms In Generative AI Adoption In India

(MENAFN- KNN India) New Delhi, May 18 (KNN)
A new study by EY has found that startups and global capability centres (GCCs) in India are leading the charge in adopting generative AI (GenAI) technologies, rapidly moving from proof-of-concept projects to production deployment.

In contrast, domestic legacy enterprises are taking a more cautious approach in evaluating the enterprise readiness of these technologies.

The report, titled "Is Generative AI beginning to deliver on its promise in India?," revealed that only 15-20 per cent of GenAI proof-of-concepts by domestic legacy enterprises have made it to production, compared to 30-40 per cent for GCCs which are aggressively embracing GenAI for innovation.

An analysis of India's top 50 unicorn startups found that 66 per cent were already utilising AI or GenAI in their operations, highlighting the proactive adoption by startups versus traditional firms.

Key challenges highlighted include hallucinations in large language model outputs, data privacy and sovereignty concerns, and the cost implications of deploying GenAI at scale.

Common GenAI use cases included intelligent assistants (33 per cent), marketing automation like text generation and media creation (25 per cent), and document intelligence tasks like summarisation and knowledge management (20 per cent).

"Enterprises need to deploy fit-for-purpose use cases for immediate value while planning long-term transformation programs," said Mahesh Makhija, EY India's Technology Consulting Leader.

"They must build enterprise AI platforms while managing costs and maintaining agility through hybrid approaches", he added.

(KNN Bureau)

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