GenAI and AI GCC State of AI_Object Automation Inc
- 1. State of AI 1 nasscom ai
- 2. nasscom ai 2 1. Ankit’s profile 2. Nasscom profile 3. What we do 4. State of AI and GenAI 5. GCC wave and AI imperatives 6. Responsible AI Agenda
- 3. NASSCOM’s Charter Areas of enablement Guided by India’s vision to become a leading digital economy globally, nasscom focuses on accelerating the pace of transformation of the industry to emerge as the preferred enabler for global digital transformation
- 4. A “NETSCAPE MOMENT” IN ARTIFICIAL INTELLIGENCE 4 nasscom ai
- 5. Vast amounts of data Mega Computing Power Massive $$ to afford it 3 Key Drivers for AI revolution
- 6. Overall Rank Talent Infrastructure Operating Environment Research Development Government Strategy Commercial United States 1 1 1 28 1 1 8 1 China 2 20 2 3 2 2 3 2 Singapore 3 4 3 22 3 5 16 4 United Kingdom 4 5 24 40 5 8 10 5 Canada 5 6 23 8 7 11 5 7 South Korea 6 12 7 11 12 3 6 18 Israel 7 7 28 23 11 7 47 3 Germany 8 3 12 13 8 9 2 11 Switzerland 9 9 13 30 4 4 56 9 Finland 10 13 8 4 9 14 15 12 Netherlands 11 8 16 15 10 13 28 20 Japan 12 11 5 10 20 6 18 23 France 13 10 11 25 15 18 13 10 India 14 2 59 12 30 21 38 13 Australia 15 14 44 62 6 16 14 22 Denmark 16 19 15 1 18 19 21 17 Sweden 17 15 21 2 13 17 44 16 Luxembourg 18 31 6 14 19 22 31 14 AI Adoption globally Source: Tortoise Media 6 nasscom ai
- 7. Source: nasscom and McKinsey Study Generative AI – Tech Services Potential 7 nasscom ai
- 8. Negative impact Positive impact Revenue driver Margin driver Impact lens Key drivers & outlook1 Growth in services/ offerings New revenue opportunities of revenue from new/ reimagined offerings/ volume amplification of existing offerings 15-25% Higher-margin revenues margins due to new offerings led by differentiated talent, proprietary assets 38-40% Scope compression Substitution of existing revenue of existing revenues flow to partners (substitution of services) 3-4% Insourcing by enterprises of existing revenue is insourced by enterprises 2-5% Erosion of existing revenue loss with automation of workflows/services 2-3% Change in economics cost reduction at the same gross margin 15-20% direct cost reduction 15-25% passed as customer discount 50-60% of direct cost reduction to be retained by ITSP 20-30% of gains passed on to partners as cost of tech 20-25% SG&A upside Productivity improvements reduction in SG&A costs 10-15% T&M: Higher productivity FP: Productivity & discount FP: Productivity gain retained 1. % change on base Potential P&L Impact of Generative AI on Technology Service Providers 8
- 9. 9 Generative AI productivity impact 50-70 60-110 100-170 120-230 110-180 120-200 150-240 40-70 150-260 160-270 180-300 200-340 80-140 240-390 240-460 Media & Entertainment Agriculture Pharmaceuticals & Medical Products 60-110 Tele communications Energy Construction Retail Real Estate 150-250 Basic Materials Education Advanced Electronics & Semi-conductors 70-110 Travel, Transport & Logistics Consumer Packaged Goods Administrative & Professional Services Healthcare Insurance Advanced Manufacturing 60-100 90-150 Public & Social Sector Chemical 170-290 Banking High Tech Expected economic value $2.6 - $4.4 Tn Business functions accounting for around 75% economic value • Software Engineering • Customer Operations • Product R&D • Sales and Marketing nasscom ai
- 10. Global capability centers (GCC ) wave in India and AI imperative 0om ai
- 11. State of RAI in India
- 12. State of RAI in India
- 13. State of RAI in India
- 14. What is nasscom doing to address barriers to responsible AI? Shortage of skilled personnel and assets Regulatory uncertainty Lack of access to quality datasets Barriers to Responsible AI Adoption Working with nation- wide initiatives for Indic Language Models Responsible AI workshops Responsible AI Venture Studio Handbook on Data Protection for AI practitioners RAI use-case checklists Capacity Building Assets RAI toolkit Supporting Government of India in Open Government Data Platform (OGD) Working with Government of Telangana on Agri Open Data Portal Playbook for Data Governance and Management Responsible AI Readiness assessment with UNESCO Policy Briefs on topics like Open- Source AI, Liability Apportionment, IP etc. RAI roundtables aggregating industry’s perspectives. nasscom initiatives to overcome barriers for responsible AI adoption
- 15. Thank You 5om ai