IDC Outlines Digital Business and AI Transformation Predictions for India
INDIA, 25 February 2025 – In a recent IDC report, Worldwide Digital Business and AI Transformation 2025 Predictions — India Implications, IDC predicts, AI spending will grow at 2.2x the rate of overall digital technology spending in the next three years, generating an India economic impact of over $115 billion by the end of 2027.
IDC also forecasts that by 2027 business executives will demand a minimum 70% success rate on their GenAI initiatives, to achieve operational efficiencies and drive new revenue growth.
“Planned investment in all types of AI is rising at levels much faster than overall digital technology investment. Strategies at leading digital business organizations are focusing heavily on AI so much so that AI transformation and digital business are locked at the hip. Although digital transformation remains foundational to India’s digital journey, AI is clearly leading the charge as a high-growth priority,” Neha Gupta, senior research manager, Digital Business and AI Strategies, IDC India.
To guide Indian businesses through this transition, IDC outlines critical predictions to become a truly digital business with full-scale integration of AI across enterprises:
Evolving Digital Role of CIO: As digital transformation becomes core to the business strategy, 40% of IT leaders will rise as business leaders by 2027, aligning people, operations, and business models with digital technologies.
Digital Business Architecture Trends: By 2027, organizations with an integrated digital business architecture will increase the value generated from their data by three times and cut time to outcomes by 20%.
Closing Digital Skills Gaps: By 2027, 55% of India-based organizations will experience digital skills shortages that will cause project delays, slowing AI technology implementations into the following year.
Data Focus in AI Strategy: By 2025, 80% of enterprises will fail to treat data as a product and put in place the discipline to unlock the value of data for all stakeholders, delaying their AI-fueled business models further.
GenAI Shifts to Process Modernization: By 2028, 75% of enterprises that establish an AI platform strategy built on a foundation of connecting processes to broader business functions will achieve enhanced value from their investments.
“IDC’s predictions emphasize AI’s pivotal role in shaping India’s digital business future. New digital businesses are not happening without AI. The rapid rise of AI spending is reshaping the tech investment landscape. The exponential growth in AI underscores its critical role in driving the next wave of innovation, signaling a shift toward more intelligent and automated solutions across industries,” Gupta adds.
Each year, IDC releases its top technology predictions at worldwide, regional and country levels through its IDC FutureScape Reports and gives a crystal ball view of what is ahead for the rapidly changing IT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. All the predictions stated here cover Asia/Pacific implications.
Catch an on-demand replay of IDC’s 2025 Predictions presentations on AI Everywhere Playbook, Building an AI-Fueled Business, Unblocking AI Everywhere Blockers, and Mapping Growth Opportunities in an AI Everywhere Era by register ing here .
Asia/Pacific Excluding Japan FutureScape Reports come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage IDC insights to better understand clients’ priorities and enhance your storytelling and go-to market plans, access the IDC FutureScape: Worldwide Digital Business and AI Transformation 2025 Predictions — India Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders market presentation here .
For more information about IDC FutureScape and other resources, please visit our regional FutureScape site. For sales inquiries on the IDC FutureScape framework and reports, please contact your IDC account manager or Tessa Rago at trago@idc.com. For media queries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.
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About IDC FutureScapes
IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC’s FutureScapes are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within a typical five-year business planning cycle.
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About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit idc.com/ap. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
Click here to learn about IDC’s full suite of data and research products and how you can leverage them to grow your business.