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GenAI to Boost India’s IT Industry Productivity by Up to 45%, EY India Survey Reveals

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Generative artificial intelligence (GenAI) is poised to significantly boost the productivity of India’s $254 billion IT industry, with a projected increase of 43% to 45% over the next five years, according to a survey conducted by consulting firm EY India. This surge in productivity will stem from the dual impact of GenAI’s internal integration within IT companies and the growing shift of client projects from proof of concept (POC) to full-scale production.

Leading Indian IT firms, such as Tata Consultancy Services (TCS) and Infosys, have noted that their clients are increasingly using AI for new projects. EY India’s survey found that 89% of these companies have already begun experimenting with GenAI, with 33% of these projects already in production. Abhinav Johri, a technology consulting partner at EY India, emphasized that businesses are transitioning from experimenting with AI to adopting it at an enterprise-wide scale, showcasing the industry’s confidence in the technology’s potential.

The survey also highlighted specific roles within the IT industry that stand to benefit the most. Software development is expected to experience the largest productivity boost of approximately 60%, followed by BPO services with a 52% increase, and IT consulting at 47%. Together, these three sectors—software development, BPO services, and IT consulting—are expected to contribute to 50%-60% of the total productivity improvement across India’s tech services industry.

The integration of AI is not only helping IT firms enhance their customer service but is also contributing to cost reduction and improved revenue growth, as reported by the survey’s respondents.

Lyft Partners with Anthropic for AI-Powered Customer Care

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Lyft (LYFT.O) announced on Thursday that it has partnered with Amazon (AMZN.O) and Alphabet-backed startup Anthropic to introduce artificial intelligence tools to enhance its customer care operations. The company has already been using Anthropic’s Claude AI model, which is integrated with Amazon’s Bedrock generative AI platform. This collaboration has reportedly reduced average customer service resolution times by 87%, allowing the platform to address thousands of customer inquiries daily.

Despite concerns about AI-driven job losses, Lyft emphasized that the goal is not to replace human workers but to enhance the quality and efficiency of its customer support services. Lyft’s approach involves initially addressing customer issues with the AI assistant, directing users to human agents only if further assistance is required.

“We see AI as an opportunity to improve the quality and effectiveness of our operations, not to reduce headcount,” said Jason Vogrinec, Lyft’s executive vice president of platforms. However, industry experts have pointed out that AI models can sometimes produce incorrect or fabricated information, limiting their ability to completely replace human agents. Lyft also noted that complex issues such as safety concerns, account deactivations, and fraud will still be handled by human representatives.

Through this collaboration, Lyft and Anthropic plan to explore additional AI-driven tools for both riders and drivers. Anthropic will also provide training for Lyft’s engineers on the technology, further enhancing the platform’s AI capabilities.

Lyft is scheduled to report its quarterly earnings after market close on Tuesday.

 

South Korea Blocks DeepSeek Amid Security Concerns, Following Global Warnings

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South Korea’s industry ministry has temporarily blocked employee access to the Chinese artificial intelligence startup DeepSeek due to security concerns, marking the latest move by governments to restrict the use of certain AI services. A ministry official confirmed on Wednesday that the ban was implemented in response to growing apprehension surrounding generative AI technologies.

On Tuesday, the South Korean government issued a notice urging caution among ministries and agencies regarding the use of AI services such as DeepSeek and ChatGPT in work-related tasks. The notice followed earlier actions by state-run entities, with Korea Hydro & Nuclear Power confirming it had blocked access to DeepSeek earlier this month.

The country’s defense ministry also took action, blocking access to DeepSeek on military computers, while the foreign ministry restricted its use on devices connected to external networks, according to Yonhap News Agency. However, the foreign ministry did not provide further details regarding the specific security measures taken.

DeepSeek, which was not immediately available for comment, joins a growing list of companies facing scrutiny over potential security risks. Both Australia and Taiwan have recently banned the AI service from government devices, citing similar security concerns. In January, Italy’s data protection authority ordered DeepSeek to block its chatbot after the company failed to address privacy issues raised by regulators.

In addition to government actions, private companies in South Korea are also taking precautions. Kakao Corp, a major South Korean chat app operator, instructed employees to refrain from using DeepSeek due to security fears, particularly following its partnership with OpenAI. Other South Korean tech giants, including SK Hynix and Naver, have also restricted or limited access to generative AI services, citing concerns about data security and privacy.

The scrutiny of DeepSeek follows the company’s claim that its AI models are on par with or superior to products developed in the U.S., while being significantly cheaper to produce. South Korea’s information privacy watchdog has announced plans to inquire with DeepSeek about its user data management practices, adding another layer of regulatory attention on the Chinese startup.