Artificial Intelligence is seeping into every part of our lives. Software-as-a-Service (SaaS) and Information Technology (IT) are no exceptions to it. A report by investment firm WestBridge Capital and Upekkha, a SaaS startup, says that $1.3 trillion will be tagged as Gen AI related revenue by 2023. This is come from both SaaS and IT services.
The report titled “AI Saas India Opportunity” says that in 2023, Gen AI related revenue was less than $10 billion. “The Gen AI India opportunity is 10 per cent of the global market share, which will stand at $130 billion at the same time period,” reads the report.
Talking about the growth of Gen AI, Aakrit Vaish, Co Founder & CEO, Haptik, said in the report, “With Gen AI, Silicon Valley is again becoming the center of gravity. To be competitive against this, we must rapidly shift our mindset to be at the forefront of this technology shift, and both founders and investors need to rethink what they are doing.”
Similarly, Gaurav Sharma, CEO & Founder, SaaS LabS, said in a statement, “Like any technology shift, Generative AI generates both optimism and fear. It offers a context of combining data so easily within enterprises that it will lead to a reimagination of how they engage with customers. No enterprise will appear too big or impersonal, driving extreme and accurate personalization.”
Challenges faced by AI
To adopt AI, a lot of R&D and engineering centers will get set up in India to “rewrite the previous technology stack used by SaaS companies,” writes the report. However, the journey towards the usage of AI is filled with biases, privacy concerns, unexpected outcomes, says the report.
“Addressing some of these risks in accuracy, reliability, regulation and security will be key for fast adoption of Gen AI,” adds the report.
