Nearly 89% of Indian technology service enterprises have launched generative AI (GenAI) proof-of-concept (POC) projects, with 33% already moving to production, according to a report released on Monday.

The report by EY India highlights how AI is transforming the country’s software services industry by driving innovation, enhancing efficiency, and reshaping business models.

Investment in AI continues to rise, with 78% of organisations allocating dedicated budgets and strategies for GenAI adoption. The sector is expected to see a 43-45% productivity boost across more than 500 roles by 2030. Additionally, 44% of companies recognize AI’s impact on improving customer satisfaction, while 28% associate it with revenue growth.

“Enterprises are no longer just experimenting with AI; they are rapidly scaling its deployment across operations. This swift transition from POC to full-scale adoption reflects the industry’s confidence in AI’s potential,” said Abhinav Johri, Technology Consulting Partner at EY India.

He emphasized that responsible AI scaling—through robust infrastructure, governance, and talent development—will be critical in unlocking its full economic potential and strengthening India’s position in the global digital economy.

Software development roles are expected to see a 60% productivity boost, while BPO services and IT consulting could improve by 52% and 47%, respectively. These three areas alone are projected to contribute 50-60% of the overall productivity gains in the tech services sector.

Organisations are also prioritizing specific areas for GenAI deployment—56% are focusing on development, 39% on operations, 28% on quality testing, and 22% each on design & prototyping and integration & deployment, the report noted.

IANS