GenAI on the Rise: EY India Survey Reveals a 45% Boost in IT Productivity

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Industry Impact and Adoption

The sprawling IT industry in India is undergoing a rapid transformation as Generative AI (GenAI) gains traction. According to EY India’s survey, 89% of clients have started trialling GenAI projects, with 33% already in production. This marks a significant shift from experimentation to enterprise-wide adoption, reflecting the industry’s confidence in AI’s potential to drive productivity improvement and revenue growth.

The IT industry is transitioning from proof of concept to full-scale implementation, integrating AI into core processes. EY India’s survey showed that GenAI projects are expected to provide a 43-45% productivity boost in software development and other IT services over the next five years. This growth underscores the role of technology consulting partners in helping enterprises leverage AI effectively.

Furthermore, putting AI into production at scale will drive cost efficiencies, improve decision-making, and create more client projects that capitalize on AI’s ability to enhance accuracy and lower costs.

Software Development and Innovation

The Biggest Productivity Boost in Tech Services

Software development stands to gain the most from GenAI adoption, with an estimated 60% productivity boost. Alongside BPO services and IT consulting, this sector will account for 50-60% of productivity gains in the overall productivity improvement in tech services. The trio of software development, BPO services, and IT consulting will be instrumental in achieving industry-wide efficiency.

How Generative AI Enhances Software Development

  • Automating Repetitive Coding Tasks – AI models generate and refine code, reducing manual effort.

  • Enhancing Software Testing – AI-driven tools detect bugs faster, improving software quality.

  • Improving Code Optimization – AI recommends performance enhancements based on historical client projects.

  • Reducing Time-to-Market – AI accelerates the development process, leading to faster deployment cycles.

Major firms like Tata Consultancy Services (TCS) and other IT industry giants are at the forefront of GenAI adoption, integrating AI-powered automation into their software development pipelines.

Enhancing Customer Service and Experience

AI’s Role in Revolutionizing Customer Services

The increasing use of Generative AI is transforming customer services, enabling companies to provide faster, more personalized support. EY India’s survey states that executives view AI as a critical factor in:

  • Lowering costs through automated responses and AI-powered chatbots.

  • Improving revenue growth by enabling efficient problem resolution.

  • Enhancing customer satisfaction with intelligent recommendations.

Business Benefits of AI in Customer Support

AI-Driven Feature

Impact on Customer Service

AI Chatbots

Automate customer queries, reducing response times.

Sentiment Analysis

Identifies customer concerns in real-time.

Personalized Assistance

Enhances user experience through tailored solutions.

Automated Call Centers

Streamline service operations with AI-powered voice support.

Executives surveyed by EY India emphasized that AI-driven customer service solutions are driving significant cost savings and increasing competitiveness for Indian IT companies.

Future of Work and Productivity

How AI is Transforming India’s Workforce

The future of work is set for a rapid transition revolutionary shift as GenAI promises increased productivity gains and economic expansion. EY India’s report predicts that:

  • By 2030, AI could transform 38 million jobs, boosting economic growth.

  • AI adoption will drive a 2.61% productivity increase in the Indian economy.

  • 24% of tasks across industries have the potential for full automation, unlocking efficiency and reducing labor-intensive work.

Preparing for the AI-Driven Workforce

To maximize the potential of Generative Artificial Intelligence, businesses need to:

  • Build talent pipelines – Invest in AI-focused education and upskilling programs.

  • Enhance data readiness – Ensure data infrastructure is AI-compatible.

  • Integrate AI into business processes – Move from trial projects to enterprise-wide adoption.

EY India’s survey showed that technology consulting firm partners play a crucial role in helping enterprises navigate AI implementation, ensuring seamless transitions and sustained productivity improvement.

Conclusion

The rapid GenAI adoption across India’s sprawling IT industry is fueling enterprise-wide adoption and reshaping software development, customer services, and workforce productivity. With EY India’s survey highlighting a potential 45% productivity boost, the industry is embracing AI as a key driver of economic growth.

To stay ahead, IT companies must:

  • Embrace AI-powered automation.

  • Prioritize data readiness and AI training.

  • Work with technology consulting partners to optimize AI-driven solutions.

As AI continues to evolve, businesses must ensure they capitalize on GenAI projects to unlock new opportunities, increase competitiveness, and drive sustained productivity gains.

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