A small increase in artificial intelligence intensity by Indian companies can results 2.5% increase in GDP in the immediate term, report claims by (NASSCOM) in collaboration with Google and ICRIER. The researchers finding from a study named “Implications of AI on the India Economy”.
How AI helps in boost the GDP ?
Basically, AI intensity is measured by total sales of the companies. In the absence of a direct measure of AI at the firm level, the model use for increase GDP is software, database and computer machinery. The result of model find a positive and significant relation between AI using companies and growth in total factor productivity. As per study, the current growth in AI investments is unlikely to increase the sufficient level of AI intensity. In order to target a positive growth shock, AI intensities should be increased rapidly for example, the investment of Rs. 7,000 crore approved by the Ministry of Finance towards the artificial program that increase AI investments at higher rates then the usual rates of business.
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This increase investments in AI intensity by 1.3 times. In other words it gives a benefits of 3.2% more increase in Indian GDP. According to the organisations report, provides an evidence for policy measures required to support AI wider adoption in India:-
- Identifying a nodal agency for the development and diffusion of AI.
- Building collaborative frameworks for engagement between governments, Industry and academic.
- Building an all encompassing data strategy for India.
- Addressing India skill gap in AI.
- Promoting the development of AI safety standards.