How much productivity can GenAI unlock in India? The Aldea of India 2025 Report by EY

The report by EY explores the transformative potential of Generative AI (GenAI) and its projected impact on the Indian economy, workforce and enterprise landscape. GenAI innovation includes multi-modal models and Agentic AI. It is progressing at an extraordinary pace, promising to revolutionize industries, redefine work while unlocking creativity and productivity. The analysis focuses on quantifying the productivity gains across sectors, assessing the current state of enterprise adoption and outlining the necessary policy agenda. It also sheds light on organizational pivots required for India to realize its potential as a global leader in AI-powered growth.

Key Insights:

1. GenAI is projected to drive a 2.61% boost in productivity by 2030 in the organized sector.
2. This organized sector productivity boost will impact 38 million Indian employees.
3. An additional 2.82% productivity improvement is possible with GenAI adoption in the unorganized sector.
4. EY’s study involved analyzing over 10,000 tasks across critical Indian industries.
5. Analysis reveals that 24% of tasks can be fully automated or eliminated (e.g., L1 customer service, invoice reconciliation).
6. Time spent on another 42% of tasks can be significantly reduced through GenAI augmentation (e.g., competitor analysis, loan structuring).
7. The integration of GenAI has the potential to free up 8-10 hours per week for every corporate worker over the next 3-5 years.
8. 36% of Indian enterprises have allocated budgets and started investing in GenAI.
9. Another 24% of enterprises are currently testing or experimenting with GenAI’s potential.
10. Only 15% of Indian enterprises report having GenAI workloads in production.
11. Just 8% of enterprises are able to fully measure and allocate AI costs.
12. The Technology sector is leading GenAI adoption, followed by Life Sciences and Financial Services.
13. Adoption is currently highest in customer service, operations, and sales & marketing functions.
14. Only 12% of enterprises have a fully integrated GenAI strategy with clear execution plans.
15. 39% of enterprises report having no clear formal GenAI strategy.
16. Only 4% of enterprises have a fully integrated and optimized GenAI platform architecture.
17. Only 3% of enterprises are fully ready and mature regarding data platform readiness for GenAI adoption.
18. 39% of enterprises are aware of the required AI skills but lack them and have no acquisition strategy.
19. The largest productivity gains are projected for the services sector.
20. Expected productivity uplift for Call center management is 80%.
21. Expected productivity uplift for Software development is 61%.
22. The IndiaAI Mission has a financial commitment of over INR 10,000 crore to develop the AI ecosystem.
23. Key policy initiatives include deploying 10,000 GPUs to scale AI research.
24. The cost of using AI models is expected to fall to around INR 120 per hour or lower as India-specific LLMs become viable.

Conclusion 

The successful transition to an AI-augmented future requires a holistic approach from enterprises and policymakers alike. For companies, realizing the massive productivity potential hinges on moving beyond pilots to reimagine business processes, redefine tasks using the Automate, Augment, and Amplify framework. They also need to repurpose work to elevate human-centered skills. The government’s role, anchored by the IndiaAI Mission is critical in creating an ecosystem through massive investments in compute infrastructure, developing Indic language datasets (e.g., Bhashini) and establishing governance via frameworks like the DPDP Act 2023. By process optimization and reskilling 38 million workers at scale, India can successfully unlock GenAI-driven economic value and strengthen its global competitiveness.

You can read the full report here.