Which Industries Will Benefit Most From AI Investments

Artificial Intelligence (AI) is revolutionising industries worldwide, with Salesforce co-founder and CEO Marc Benioff quoted as saying that artificial general intelligence (AGI) may be “the most important technology of any lifetime.” As the new digital economy arises and technology develops at a rapid pace, AI has an influence on industries ranging from agriculture to healthcare. As AI investment continues to rise, governments and companies are anxiously waiting to leverage its potential to increase productivity and lower spending.

India is a rapidly growing economy in the world and a special case for AI adoption. Here, most large industries are still operating in a conventional manner, and AI can leverage inefficiencies, reach, and scalability. From helping farmers make more intelligent decisions to revolutionising rural healthcare services, AI is a disruptor. Which sectors, however, will reap the maximum benefit 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 cited enhancing customer experience as their number one AI use case. The other fascinating finding from this report was that only 13% of the respondents believed that AI had no place in their organisation schemes of the future, instead relying solely on vendor partners to drive

In addition to process optimisation, AI has also proven that it can be used for better risk management. AI technologies have brought the loan processing period down considerably, enabling businesses to provide prompt, customer-driven services, particularly to market segments which otherwise have been left untouched by banks. Not only is this lowering the default rate, but also increasing financial inclusion by giving credit to individuals who do not have traditional credit history.

Agriculture

Agriculture remains the strength of India’s economy, and 58% of Indian labour is engaged in it. AI provides precision farming practices, which monitor the soil conditions, weather, and crop health to give feedback that can be acted on. These technologies allow farmers to optimise the use of resources, increase yield, and prevent wastage. Disease and pest monitoring systems based on artificial intelligence can detect signs of infestation in the early stages, enabling interventions in a timely manner. The early intervention approach reduces crop loss as well as chemical pesticide application and 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 industry is plagued by poor access to quality care and a lack of doctors. These are problems solved by AI by providing diagnostic support in the form of imaging software analysing medical scans with high accuracy, enabling early detection of diseases.

Apart from this, AI allows customised treatment plans based on patient data analysis, resulting in improved outcomes. AI-powered telemedicine platforms are opening up healthcare access, particularly to rural areas, with remote consultations and ongoing patient monitoring.

Education

AI is revolutionising Indian education by providing customised learning experiences. Adaptive learning platforms measure the performance of individual students and tailor educational content, enhancing interest and understanding.

In addition, AI makes bureaucratic processes like scheduling and grading manageable, ensuring teachers can spend more time teaching. AI-powered language translation tools also close the language gap, enabling learning materials to reach a multilingual student population. 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 behind it.

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 capable of personalising shopping experiences based on customer behaviour and preferences, resulting in tailored product recommendations.

Inventory management has also been improved with AI forecasting demand patterns, maintaining optimal stock levels, and lowering operating expenses. AI-driven chatbots also improve customer service by offering real-time assistance and resolving issues in real-time.

Manufacturing

In manufacturing, AI-based predictive maintenance keeps a check on the health of the equipment, anticipating failure in the future and decreasing downtime. Processes of quality control are streamlined with machine learning technology that is accurate in detecting defects, providing uniform product quality. This is adequately depicted in India’s Industrial automation market growth at a CAGR of 14.26% to be valued at $29.4 billion by 2029.

Supply chain optimization is another benefit of using AI. Assessing marketplace trends alongside logistic data aids producers in the optimisation of performance, reducing expenditure, and taking rapid action when responding to marketplace demand.

Energy

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

Conclusion

Investments in Artificial Intelligence are redefining Indian enterprises by facilitating efficiency and innovation. Starting with the improvement in businesses like NBFCs and online marketplaces by streamlining and making the interface with the customers more efficient, AI is defining smarter and adaptive business worlds. With advances picking up the momentum, the sectors of healthcare, agriculture, education, and manufacturing will only go on experiencing positive effects through AI-based applications making decision-making efficient, the expenses lower, and productivity greater. However, it is necessary that companies adopt responsible AI, reconciling regulations 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.