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Informist, Wednesday, Mar. 12, 2025

NEW DELHI – Generative artificial intelligence, or GenAI, has the potential to drive productivity gains in India, impacting millions of workers in the process, according to a report by EY.

EY estimates that GenAI could impact 38 million jobs in India while improving productivity by 2.61% by 2030 in the organised sector and by 2.82% in the unorganised sector. "Our analysis reveals that 24% of tasks can be fully automated, while time spent on another 42% can be significantly reduced, freeing up 8-10 hours per week for corporate workers," the report said. 

The largest productivity gains from GenAI are expected in the services sector, such as banking, due to its higher labour share in gross output. Manufacturing and construction sectors, on the other hand, will see a smaller impact, the report said.

While banks in India have been relatively conservative in number of production-level use cases, big banks have taken up large-scale implementation projects specifically focused on GenAI, towards the last few months of 2024. These large scale projects are in areas ranging from cyber security to corporate lending.

Functions with highest potential for productivity impact include banking operations, which could improve by up to 46%. Sales and customer service prodiuctivity could improve by 40% and credit and collections by 36%, which could together account for 40% to 42% of productivity improvement, EY said. 

Other sectors in which GenAI is projected to enhance productivity include the automotive sector, where it could rise 30% to 32% by 2030 across key roles.

"The successful adoption of GenAI requires clear strategies, piloting use cases, and scaling solutions, alongside reimagining processes, redefining KPIs (Key Performance Indicators), and targeted reskilling," the report said. "Large-scale upskilling initiatives, supported by public-private partnerships and AI-focused training programs, are crucial to bridging the skill gap. With investments in skills, data and infrastructure, GenAI can drive economic productivity and ensure a future-ready workforce for India."  End

Reported by Shubham Rana

Edited by Avishek Dutta

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