67% of Companies Generating Positive ROI from AI Investments in India's TMT Sector: Report 40% of companies report a 5-10 per cent reduction in operational costs due to AI implementations
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Artificial Intelligence (AI) adoption in India's Technology, Media, and Telecom (TMT) sector has fueled unprecedented growth and innovation, delivering strong returns on investment (ROI) and reductions in operational costs. According to the KPMG report, 'Redefining TMT with AI', 67 per cent of Indian companies are already generating positive ROI from AI investments. Additionally, 40 per cent of companies report a 5-10 per cent reduction in operational costs due to AI implementations.
"Jio is revolutionizing the telecom industry with AI and generative AI, leveraging Digital Twin technology to enhance network efficiency and customer experience. Through our Jio Brain platform, we are developing the next wave of AI with specialized, secure language models, fostering innovation and operational excellence. These solutions are easily extendable to other operators using open APIs," said Shyam Mardikar, Group Chief Technology Officer (CTO) - Mobility, Reliance Jio Infocomm Limited.
Similarly, Airtel has recently launched the world's first anti-spam network solution powered by advanced AI and data analytics. This solution processes 2.5 billion calls and 1.5 billion messages daily, providing real-time detection and alerts to customers at no additional cost. "The dual-layered protection system integrates both network and IT system layers, ensuring comprehensive coverage and enhanced security. This approach exemplifies the inclusive and responsible use of AI," noted the report.
The TMT sector is also addressing the skills gap by initiating in-house training programs for employees. For instance, Vodafone Idea has started sourcing talent from prestigious institutions and providing specialized training in AI, data science, big data analytics, edge computing, and cloud computing.
"Our AI team carries business growth targets, ensuring that our AI/ML and data science projects are not just academic but aligned with tangible business outcomes," said Dr. Sanjeev Chaube, Executive Vice President & Head (India) - AI, Big Data & Advanced Analytics, Vodafone Idea.
AI-Driven ROI: A Mixed Picture
AI's contribution to revenue growth is evident across the TMT sector, with 38 per cent of companies reporting more than a 10 per cent increase in revenue due to AI-driven initiatives. Additionally, 23 per cent of companies have observed a 6-10 per cent rise in revenue following AI implementation. However, not all companies have experienced immediate success—8 per cent of surveyed organizations have yet to see notable returns, while another 8 per cent find ROI assessment inapplicable, possibly due to the early stages of their AI projects.
Despite these successes, Generative AI itself is a challenge for 55 per cent of TMT organizations, followed by economic uncertainty (49 per cent) and geopolitical complexities (49 per cent). These challenges require strategic planning to gain higher return on investment. Nevertheless, 65 per cent of Indian CEOs strongly agree that adopting generative AI will provide a competitive advantage.
