Name: Reshma S. Gajakosh
Country: India

Year: 2025
Volume: Volume No: 12, Issue No: 2, Year: 2025 (Special Issue- 1)
Page Number: 80-83
DOI: https://doi.org/10.5281/zenodo.17112376

INTRODUCTION:
The Indian economy is rapidly and significantly changing due to artificial intelligence, which
is also revolutionizing traditional management techniques. Artificial intelligence (AI) is
poised to have a significant impact on the Indian economy. According to a report by
NASSCOM, a unit increase in AI intensity by AI-using firms could return $67.25 billion or
2.5% of GDP to the Indian economy in the near term. This growth is attributed to AI's ability
to increase Total Factor Productivity (TFP) growth by 0.05% with a unit increase in AI
intensity.
In the Indian context, the impact of AI can already be seen in a wide range of organizations
and industries. Businesses are using AI to improve operations across all industries, including
the financial industry, retail, and manufacturing. Indian banks are using AI, for instance, to
strengthen fraud detection systems and improve customer service, delivering a more secure
and seamless experience. Similar to this, Indian retailers are using AI to improve supply
chains, personalize recommendations, and ensure maximum efficiency. AI is being used by
Indian manufacturers to raise quality control standards and promote cost effectiveness,
demonstrating the many benefits that AI can provide.