38 Million Jobs in India to Be Transformed by 2030 with GenAI: EY Report By Elets News Network - 17 January 2025

GenAI

“Generative AI has the potential to change the world in ways that we can’t even imagine. It has the power to create new ideas, products, and services that will make our lives easier, more productive, and more creative.”

– Bill Gates, Co-founder, Microsoft


GenAI is changing workflows and processes across industries, affecting how businesses operate and economies function. By automating repetitive tasks, improving decision-making, and supporting innovation, GenAI is helping businesses worldwide adjust their strategies. In India, this change is expected to impact operations by 2030, as stated in the EY India report, How much productivity can GenAI unlock in India? The AIdea of India: 2025.

According to the report, AI adoption could impact 38 million jobs and increase productivity in the organised sector by 2.61% by 2030. The unorganised sector could add another 2.82% to these gains with GenAI integration.

The report finds that GenAI can automate 24% of tasks and enhance 42%, potentially freeing 8-10 hours per week for knowledge workers. The services sector may see the largest productivity gains due to its reliance on labour. Manufacturing and construction are projected to experience smaller productivity impacts.

Skills Shortages Impacting GenAI Growth

The study shows that only 3% of Indian enterprises have enough in-house talent to leverage AI fully. The remaining 97% cite a lack of skilled professionals as a key barrier to adoption. This indicates a significant gap in the readiness of businesses to maximise GenAI’s potential.

Rajiv Memani, Chairman and CEO of EY India, said, “Building talent pipelines and prioritising upskilling must be at the forefront of every organisation. By fostering public-private collaborations and investing in talent development, India can also become a global hub for AI-skilled talent.”

The report also covers how industries like financial services, healthcare, and retail can use GenAI to optimise processes like customer acquisition and operations. New industries such as advanced manufacturing and renewables are positioned to adopt AI-first business models.

GenAI Adoption Trends

The survey of 125 C-suite executives across sectors finds that adoption is still at an early stage. Only 15% of enterprises have moved GenAI from proof of concept (POC) to production. Another 34% have completed POCs, while 36% are yet to start.

“To maximise the potential for economic growth, India needs to focus on AI policy agenda, compute infrastructure, AI research, addressing challenges in responsible governance, intellectual property rights, and data protection,” said Mahesh Makhija, Technology Consulting Leader of EY India.

Data readiness is a major challenge. Just 3% of enterprises report being fully ready for AI deployments, while 23% say they are not prepared at all.

Also Read :- Over 620 Forbes 2000 Companies Set to Establish GCCs in India by 2030: ANSR Q3 GCC Report

Sector-Specific Productivity Gains

An analysis of 10,000 tasks indicates varying productivity impacts across sectors. Call centre management could see an 80% improvement, software development 61%, and content development 45%. Customer services and sales could see gains of 44% and 41%, respectively.

IT/ITeS may see a 19% productivity increase, while healthcare could gain 13%. Banking and insurance are expected to achieve 8-9%. Industries like automotive and pharmaceuticals are projected to see minimal gains, around 2%, due to lower labour contributions.

“In industries like financial services, healthcare and retail, AI will reshape basic processes including customer acquisition, operations and service, while IT/ITeS and BPO will undergo more dramatic changes,” said Makhija.

Costs and ROI

Measuring Return on Investment (ROI) remains a challenge for GenAI initiatives. The report showed that of the 15% of enterprises using GenAI in production, only half can accurately allocate and measure AI-related costs.

Despite these challenges, the falling cost of AI adoption is encouraging. Foundational model API prices have dropped by 80% over two years. Deployment costs are as low as INR 120 per hour, making AI more accessible to small and medium enterprises.

The survey included leaders from industries like financial services, retail, healthcare, and technology. It shows the varying readiness levels and challenges Indian enterprises face in adopting GenAI.

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