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As India continues to grow from strength to strength in technological advancements; private and public entities look at increasing their Artificial Intelligence (AI) prowess. This growth is reflected in the latest report shared by the International Data Corporation (IDC). 

The report reveals that India's artificial intelligence spending will probably grow at a Compound annual growth rate (CAGR) of 30.8% and touch $880.5 million in 2025, which is approximately Rs 6,500 crores. 

"Enterprises are relying on AI to maintain business continuity, transform how businesses operate and gain competitive advantage. India's AI spending will grow from $300.7 million in 2019 to $880.5 million in 2023 at a CAGR (Compound annual growth rate) of 30.8%," as per IDC's Worldwide Artificial Intelligence Spending Guide Forecast.

The onset of the COVID-19 pandemic is furthering the adoption of AI by various businesses. "Businesses are considering investments in intelligent solutions to tackle issues associated with business continuity, labour shortage, and workspace monitoring. Organisations are now realising that their business plans must be closely aligned with their AI strategies," said Rishu Sharma, Principal Analyst (Cloud and AI) at IDC in India. 

However, as per the IDC's 2019 Cognitive AI Adoption Survey, as many as 20% of businesses are at the planning phase, devising AI-centric strategies to venture into new opportunities and businesses. This delay in execution is perhaps due to a lack of expertise in data trustworthiness and understanding the optimal algorithm for a business. 

"The variety of industry-specific tech solutions supported by emerging technologies like Internet of Things (IoT), Robotics, Blockchain, etc. are getting powered by complex AI algorithms and are cloud-enabled to reach their max potential," said Ashutosh Bisht, Senior Research Manager for IDC's Customer Insights and Analysis group. 

He further added, “In India, BFSI and manufacturing verticals are the two biggest spenders of AI across different use cases making almost 37% of the AI spending in 2019." 

He concluded that as India's adoption of cloud technologies accelerate, as many as 60% of AI applications will be cloud-based by 2024. 

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