Which industries will benefit most from AI investments

Artificial Intelligence (AI) is revolutionisingindustriesworldwide, with Salesforce co-founder and CEO MarcBenioff quoted as saying that artificial general intelligence (AGI) may be “the most important technology of any lifetime.” As the new digital economy arises and technologydevelopsatarapid pace, AI hasaninfluence on industries ranging from agriculture to healthcare. As AI investmentcontinues to rise, governments and companies are anxiouslywaiting to leverage its potential to increase productivity and lowerspending.

India is arapidlygrowing economy in the world and a special case for AI adoption. Here, most large industries are still operating in aconventional manner, and AI can leverageinefficiencies, reach, and scalability. From helping farmers make moreintelligentdecisions to revolutionising rural healthcare services, AI is a disruptor. Which sectors, however, will reap the maximumbenefit from AI investments? Let’s explore and learn!

Financial services

In the financial sector of India, businesses are using AI to reimagine operations. A PwC report identified that 83% of Indian financial services businesses have citedenhancing customer experience as their numberone AI use case. The other fascinatingfinding from this report was that only 13% of the respondents believed that AI had no place in their organisation schemes of the future, insteadrelyingsolely on vendor partners to drive

Inadditionto process optimisation, AI has also proven that it can beused for better risk management. AI technologies have brought the loan processing perioddown considerably, enabling businesses to provideprompt, customer-driven services, particularly to market segments whichotherwise have been leftuntouched by banks. Not only isthis lowering the default rate, but also increasing financial inclusion by giving credit to individuals who donothave traditional credit history.

Agriculture

Agriculture remains the strength of India’s economy, and 58% of Indian labourisengaged in it. AI provides precision farming practices, which monitorthe soil conditions, weather, and crop health to givefeedback that can be actedon. These technologies allow farmers to optimise the useof resources, increaseyield, and prevent wastage. Disease and pest monitoring systems basedonartificialintelligencecandetect signs ofinfestationin the early stages, enablinginterventions in a timely manner. The early intervention approachreduces crop loss aswellas chemical pesticideapplicationand encourages sustainable agricultural practices.

 Healthcare

According to Nasscom, healthcare data and AI can add $25–30 billion (equivalent to ₹21,000–26,000 crore) to India’s GDP by 2025. The Indian healthcare industryisplaguedbypoor access to quality care and a lack of doctors. These are problemssolved by AI by providing diagnostic support in the form of imaging software analysing medical scans with high accuracy, enabling early detectionof diseases.

Apart from this, AI allowscustomised treatment plans basedon patient data analysis, resultinginimprovedoutcomes. AI-powered telemedicine platformsareopeningup healthcare access, particularly to rural areas, with remote consultations and ongoing patient monitoring.

Education

AI is revolutionising Indian education by providingcustomised learning experiences. Adaptive learning platforms measure the performance of individualstudents and tailor educational content, enhancing interest and understanding.

In addition, AI makes bureaucratic processeslikeschedulingand grading manageable, ensuring teachers canspend more time teaching. AI-powered language translation tools also close the language gap, enabling learning materials to reach a multilingual studentpopulation. The ed-tech industry is also poised to mirror $9 billion (approx. Rs. 7985 crore) in growth by 2029, and AI will be the force behindit.

Retail and e-commerce

E-commerce businesses and online retail stores are seeing a paradigm change with the integration of AI. AI-driven algorithms are now capableof personalising shopping experiences basedon customer behaviour and preferences, resultingintailored product recommendations.

Inventory management has also been improved with AI forecasting demand patterns, maintainingoptimal stock levels, and loweringoperatingexpenses. AI-driven chatbots also improve customer service by offeringreal-timeassistance and resolvingissues in real-time.

Manufacturing

In manufacturing, AI-based predictive maintenance keepsacheckon the health of the equipment, anticipatingfailure in the future and decreasing downtime. Processes of quality control are streamlinedwith machine learning technology that is accurate in detectingdefects, providinguniform product quality. This is adequatelydepicted in India’s Industrial automation market growth at a CAGR of 14.26% to bevalued at $29.4 billion by 2029.

Supply chain optimisation is another benefit of using AI. Assessing marketplace trends alongside logistic dataaids producers intheoptimisation of performance, reducingexpenditure, and takingrapidactionwhen responding to marketplace demand.

Energy

The energy industry is augmentedwith AI through the creation of smart grids that optimise supply and demand, minimising outages. For the Ujwal DISCOM Assurance Yojana (UDAY), AI-basedsolutions are used to track the financial and operational well-being of electricity distribution companies (DISCOMs). AI is also utilised in themanagement of renewable sources of power by forecasting availability basedon weather patterns, facilitating easier integrationinto the power grid.

Conclusion

Investments in ArtificialIntelligence are redefining Indian enterprisesbyfacilitating efficiency and innovation. Startingwiththe improvement in businesses like NBFCs and online marketplaces bystreamlining and making theinterfacewith the customers more efficient, AI is definingsmarter and adaptive business worlds. With advancespickingupthe momentum, thesectorsof healthcare, agriculture, education, and manufacturing will onlygoonexperiencing positive effectsthrough AI-based applicationsmaking decision-making efficient, theexpenses lower, and productivitygreater. However, it is necessarythat companies adopt responsible AI, reconcilingregulations and ethics with optimising its potential. With increased investment and strategic deployment, AI will become the driver of India’s economic growth and global competitiveness in the future years.