On National Productivity Day, let’s talk about how Generative Artificial Intelligence (GenAI) is set to boost productivity in India’s workforce and economy by 2030. A recent report by Ernst & Young (EY) India suggests that AI could impact 38 million jobs and increase productivity in both organised and unorganised sectors.
GenAI can take over repetitive tasks, giving people more time to focus on creative and meaningful work. The report says that AI could fully automate 24% of work across industries and reduce the time spent on 42% of tasks. This means employees could save 8-10 hours per week, making their workdays more productive.
The biggest impact will be seen in service-based jobs, where AI can help with customer service, data management, and scheduling. Manufacturing and construction will also benefit, especially in reducing resource wastage and labour costs. But for AI to work well, businesses need to rethink how work is done and train employees in new skills.
Need for AI Skills
One major challenge in using AI is the shortage of skilled workers. A survey of 125 top executives found that only 3% of Indian companies have in-house AI talent, while 97% see a skills gap as a major issue.
Industries such as finance, healthcare, and retail will benefit from AI-powered customer service and automation. IT and BPO sectors will see even bigger changes, while industries like biotechnology and advanced manufacturing could gain a competitive edge by using AI.
To bridge this gap, India needs more AI training programmes, public-private partnerships, and investment in skill development. The focus should be on practical AI applications and making sure employees can use AI effectively.
AI Costs Are Going Down
AI technology is getting cheaper. OpenAI’s GPT API costs have dropped by nearly 80% in two years, and open-source models like Meta’s Llama are making AI more widely available. EY predicts that AI usage costs in India could drop to as low as ₹120 per hour ($1.39), making it affordable for more businesses.
The Indian government is also working to make AI tools available in local languages. The Bhashini project is building open-source datasets to improve digital services in Indian languages, helping businesses and workers across the country use AI more effectively.
Building India’s AI Future
AI is becoming a key part of India’s digital growth. A strong AI startup ecosystem and government initiatives will speed up adoption. EY suggests launching an India Dataset Platform to provide AI-ready data for key industries like healthcare, education, and agriculture while ensuring privacy.
The government is already making big moves. The IndiaAI initiative, launched in March 2024, plans to boost computing power by adding over 10,000 high-performance processors through a public-private partnership. These processors are critical for running AI applications efficiently.
In March 2024, the Indian government approved ₹10,300 crore ($1.24 billion) for the IndiaAI Mission, with almost half of the budget focused on improving AI infrastructure. Over the next five years, these efforts will help India become a leader in AI-driven productivity and innovation.
GenAI is set to transform how people work, making jobs more efficient and businesses more competitive. But for AI to reach its full potential, companies need to invest in training, rethink workflows, and integrate AI strategically.
