The adoption of generative artificial intelligence (GenAI) is poised to significantly enhance the productivity of India’s $254-billion IT industry, with an estimated boost of 43 to 45 percent over the next five years, according to a survey conducted by EY India. The consulting firm highlights that this growth will be driven by both internal implementation of GenAI within IT companies and the increasing shift of client projects from proof-of-concept stages to full-scale deployment.
EY India’s findings suggest that this productivity surge will impact nearly 500 different roles across the industry. As top IT firms like Tata Consultancy Services (TCS) and Infosys continue to emphasize AI adoption, the sector is witnessing a shift toward GenAI-powered projects. The survey reports that 89 percent of IT enterprises have already begun testing GenAI initiatives, with 33 percent of those projects advancing beyond experimentation into 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,” said Abhinav Johri, a technology consulting partner at EY India.
The survey further identifies software development as the segment set to experience the highest productivity gains, with an estimated improvement of around 60 percent. BPO services follow closely with a 52 percent boost, while IT consulting is projected to see a 47 percent increase. These figures indicate that GenAI’s impact will be most pronounced in areas where automation and intelligent systems can optimize workflows and enhance decision-making.
Together, software development, BPO services, and IT consulting will contribute to nearly 50 to 60 percent of the overall productivity gains across India’s tech services sector. As AI adoption accelerates, the industry is expected to undergo a significant transformation, with companies leveraging GenAI not only to improve operational efficiency but also to drive innovation and competitiveness in an increasingly AI-driven global market.