India's Generative AI Startups Double Investments in H1 2024: Nasscom

CIOTechOutlook Team | Monday, 22 July 2024, 05:16 IST

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Nasscom reported that the funding for India's AI startups doubled in the first half of 2024 compared to the second half of 2023. Even with the rise in investments, there was an almost 50% drop in funding rounds in the first half of this year compared to the second half of last year, as reported by Nasscom in its most recent Generative AI tracker.
In the same timeframe, investments in Gen AI startups in the US tripled, and investments by major tech companies in Gen AI startups also increased by 1.25 times.
According to Nasscom, major international hyperscalers are increasing their infrastructure investments worldwide, with more than $80 billion pledged for expanding data center and cloud capacity in the next 10-15 years.
Income generated from Generation AI is slowly emerging as major IT companies have developed solid use cases. For example, Accenture reported $2 billion in revenue from Gen AI that was booked in the first half of 2024. During this period, TCS, India's leading software exporter, revealed that it had generated $900 million in revenue from Gen AI, of which 10% is expected to be invoiced by FY 2025.
Sangeeta Gupta, chief strategy officer, Nasscom said, “As GenAI continues to revolutionise the tech landscape, the tech industry in India is leveraging this technology both in-house and for client solutions. The focus is on guiding clients through their entire Gen AI journey, from identifying impactful use cases to executing proofs of concept, while upskilling their workforce with essential expertise. The industry has seen a sevenfold increase in Gen AI activities, including business prospecting, talent development, partnerships and new product launches, solidifying Gen AI as a top strategic priority for tech services companies.”
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