GenAI Set to Boost Productivity in India's IT and Retail Sectors by Up to 45%

GenAI could boost productivity in India's retail industry by 35-37% in 5 yrs: EY India report

The use of generative artificial intelligence (GenAI) could boost productivity in India's retail industry by 35-37% in the next five years, according to EY India's latest report. The report, titled "The AIdea of India: 2025", highlights that 48% of Indian businesses have already initiated proof of concept (PoCs) to test GenAI solutions, while another 32% are either planning to invest or have already allocated budgets for AI adoption. ET has reviewed the report shared by EY India. "GenAI is transforming India's retail, consumer and e-commerce landscape by unlocking unprecedented opportunities for organisations," said Angshuman Bhattacharya, partner, EY-Parthenon. "The trajectory of GenAI suggests that insights-driven pricing, promotions and enhanced customer experiences will be pivotal, with an anticipated productivity impact ranging from 40% to 45%. Store operations are not far behind, with expected improvements in efficiency of 38% to 40%." Companies in the retail industry are increasingly deploying AI-driven recommendation engines to personalise shopping experiences, optimising demand forecasting and warehouse operations to reduce errors, and leveraging AI for quality control and predictive maintenance in manufacturing. This shift mirrors global trends, with major international brands also embracing AI. For instance, H&M is using GenAI for sustainable product development and marketing, Coca-Cola is optimising delivery routes and stock management, and Amazon Go is enabling cashier-less checkout systems. The report suggests that in the long term, AI-driven market research, augmented reality (AR) and virtual reality (VR) shopping, and fully automated manufacturing could redefine the sector, creating new business models and enhancing operational efficiency. While the immediate benefits of GenAI include cost reduction -- cited by 56% of survey respondents -- and revenue growth and customer satisfaction improvements -- acknowledged by 44% -- the report cautions that its success will depend on balancing automation with human-centric experiences. Bhattacharya said, "The ongoing evolution of GenAI promises to dismantle technological barriers and pave the way for greater synergy. However, maintaining a balance between automation and human-centric experiences will remain essential for GenAI's long-term success."

GenAI to Enhance India's IT Productivity by 45 Percent, Says EY Survey: Report

AI adoption is improving customer service, reducing costs, and driving revenue growth. The increasing adoption of generative artificial intelligence (GenAI) could enhance the productivity of India's USD 254-billion IT industry by 43 percent-45 percent over the next five years, according to a survey by consulting firm EY India. The boost, which EY India's survey states, will span 500 roles as IT firms integrate GenAI internally and deploy AI-driven solutions for clients, Reuters reported. Also Read: Developing Over 100 New Gen AI Agents For Clients: Infosys CEO IT companies such as Tata Consultancy Services and Infosys have already reported AI adoption by clients in new projects. The survey revealed that 89 percent of IT firms are trialing GenAI, with 33 percent having moved from proof of concept to full-scale production, according to the report. "Enterprises are moving beyond experimentation to putting AI into production at scale. The rapid transition from POC to enterprise-wide adoption reflects the industry's confidence in AI's potential," Abhinav Johri, a technology consulting partner at EY India was quoted as saying. Also Read: Generative AI to Transform 38 Million Jobs by 2030: EY India Report Within the IT industry, EY India's survey showed that roles in software development will get the biggest productivity boost, of roughly 60 percent, followed by a 52 percent improvement for BPO services and 47 percent for IT consulting. These three areas will contribute 50-60 percent of the overall efficiency improvement in the sector. The increasing use of AI is not only helping the IT industry enhance customer service but is also lowering costs and improving revenue growth, according to executives surveyed by EY India, the report said.

GenAI to Boost India's IT Industry's Productivity by Up to 45 Percent: EY

TCS, Infosys have highlighted AI use by clients for new projects The increasing use of generative artificial intelligence (GenAI) could boost the productivity of India's $254-billion software industry by 43 percent-45 percent over the next five years, according to a survey by consulting firm EY India. This productivity boost, which EY India's survey states will span 500 roles, will come through the dual effect of the IT industry itself integrating elements of GenAI internally and as more client projects move from proof of concept to production. Top IT companies such as Tata Consultancy Services and Infosys have highlighted the use of AI by clients to do new projects and EY India said 89 percent of them have started trialling GenAI projects, with 33 percent of those already in production. "Enterprises are moving beyond experimentation to putting AI into production at scale. The rapid transition from POC to enterprise-wide adoption reflects the industry's confidence in AI's potential," Abhinav Johri, a technology consulting partner at EY India, said in a statement. Within the sprawling IT industry, EY India's survey showed that roles in software development will get the biggest productivity boost, of roughly 60 percent, followed by a 52 percent improvement for BPO services and 47 percent for IT consulting. This trio -- software development, BPO services and IT consulting -- will account for 50 percent-60 percent of the overall productivity improvement in tech services, the survey showed. The increasing use of AI is not only helping the IT industry enhance customer service but is also lowering costs and improving revenue growth, according to executives surveyed by EY India. © Thomson Reuters 2025