Unorganized Sector Set to Drive 2.82% Productivity Surge with GenAI Adoption: Report Industries such as call center management, software development, and content creation are set to see significant productivity gains by 2030, with projected improvements of 80 per cent, 61 per cent, and 45 per cent, respectively
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India's adoption of Artificial Intelligence (AI) has accelerated at an unprecedented pace, with both organized and unorganized sectors leveraging the technology to drive productivity and economic growth. According to the EY India report, 'How much productivity can GenAI unlock in India? The Aldea of India: 2025,' this AI revolution is expected to transform 38 million jobs, contributing a 2.61 per cent productivity boost to the economy through gains in the organized sector.
The unorganized sector could further contribute an additional 2.82 per cent boost with the widespread adoption of Generative AI (GenAI) over the next five years.
"GenAI is revolutionizing India's economic landscape, unlocking new opportunities across industries and reshaping jobs through enhanced productivity and innovation," said Rajiv Memani, Chairman and CEO of EY India.
The report highlights that 24 per cent of tasks across industries could be fully automated, while another 42 per cent could be significantly augmented by AI, potentially freeing up 8-10 hours per week for knowledge workers.
Despite its immense promise, the adoption of GenAI remains in its infancy. Only 15 per cent of surveyed enterprises have implemented GenAI in production, while 34 per cent have completed proof of concepts (POCs) and 11 per cent are in the process of productionalizing successful POCs.
A notable 36 per cent of participants have yet to begin experimenting with GenAI.
Industries with high productivity rate
Industries such as call center management, software development, and content creation are set to see significant productivity gains by 2030, with projected improvements of 80 per cent, 61 per cent, and 45 per cent, respectively. Customer service and sales and marketing functions are expected to follow closely, with productivity boosts of 44 per cent and 41 per cent.
Mahesh Makhija, Technology Consulting Leader at EY India, emphasized the transformative impact of AI on sectors like financial services, healthcare, and retail, particularly in areas such as customer acquisition, operations, and service delivery. He added that emerging industries like biotech, advanced manufacturing, and renewables have the potential to leapfrog to AI-driven business models, further driving India's innovation capabilities.
However, challenges remain. A shortage of skilled talent is a significant hurdle to AI adoption, with only 3 per cent of surveyed enterprises reporting sufficient in-house expertise to fully harness AI's potential. Public-private collaboration and investment in talent development are critical to overcoming this barrier. "Building robust talent pipelines and prioritizing upskilling must be at the forefront of organizational strategies," Memani added.
To fully capitalize on AI's potential, India must address critical areas, including compute infrastructure, research, responsible AI governance, intellectual property rights, and data protection policies. "The right investments and a clear AI policy agenda will be crucial to driving economic growth and ensuring India's leadership in the global AI landscape," Makhija concluded.
