State of Artificial Intelligence in India 2020

State of
Artificial Intelligence
in India - 2020
Report developed by AIMResearch,
in association with Jigsaw Academy,
on the Artificial Intelligence Market
in India as AI emerges as one of
the primary Data Science functions
across Enterprises in India
September 2020

Disclaimer: This document is the result of research carried out by AIMResearch.
Permission may be required from AIMResearch for reproduction of the information in
this report. Reasonable efforts have been made to source and present data that is
believed to be reliable, but makes no representations or warranty, express or implied, as
to their accuracy or completeness or correctness. All rights reserved with the
aforementioned parties.
© 2020 Analytics India Magazine Pvt Ltd and/or its affiliates. All rights reserved. Images
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This publication consists of the opinions of Analytics India Magazine and should not
be construed as statements of fact. The opinions expressed herein are subject to change
without notice.

Executive Summary
About Jigsaw Academy
Benefits and Key Takeaways
Overview of the Artificial Intelligence Market
in India
Artificial Intelligence Market Size by
Company Type
Artificial Intelligence Market Size by Sector
/ Industry
4
6
7
5
11
21
CONTENT
Domestic Boutique Start-ups Artificial
Intelligence Market Break-up
Salaries of Artificial Intelligence Personnel
35
38
Experience-wise Classification of Artificial
Intelligence Personnel
42
Artificial Intelligence Jobs Study 46
Covid Pandemic Effect: AI Market Before and
After
54
Artificial Intelligence Market Forecast 57
Conclusion 59

4
AIM Research
Artificial Intelligence or AI is a field of Data Science that trains
computers to learn from experience, adjust to inputs, and perform tasks of certain
cognitive levels. Over the last few years, AI has emerged as a significant data science
function and, by utilizing advanced algorithms and computing power, AI is transforming
the functional, operational, and strategic landscape of various business domains. AI
algorithms are designed to make decisions, often using real-time data. Using sensors,
digital data, and even remote inputs, AI algorithms combine information from a variety
of different sources, analyze the data instantly, and act on the insights derived from the
data.
Most AI technologies – from advanced recommendation engines to self-driving
cars – rely on diverse deep learning models. By utilizing these complex models, AI
professionals are able to train computers to accomplish specific tasks by recognizing
patterns in the data.
Analytics India Magazine (AIM), in association with Jigsaw Academy, has developed
this study on the Artificial Intelligence market to understand the developments of the AI
market in India, covering the market in terms of Industry and Company Type. Moreover,
the study delves into the market size of the different categories of AI and Analytics
startups / boutique firms.
EXECUTIVE
SUMMARY

5
By Analytics India Magazine
Jigsaw Academy, with over 400 years of combined teaching experience,
including online and remote learning delivery, is adept at training and upskilling
professionals and freshers in key capabilities in emerging technologies like business
analytics, data science, artificial intelligence, deep learning, cybersecurity, full stack
development, and cloud computing, to name but a few.
ABOUT JIGSAW
ACADEMY

6
AIM Research
Through this research, AI and Deep Learning practitioners
(across all levels) will be able to study the scale and scope of the Artificial Intelligence
market in India, including by company types and industries, to understand the direction
in which the AI market is moving and the various prospects of the entire AI domain.
Moreover, venture firms and large technology enterprises would be able to ascertain the
potential of the domestic AI market across AI and analytics startups, for the purpose of
investments, market entry, or buy-outs.
BENEFITS AND
KEY TAKEAWAYS

7
As a part of the broad Data Science
domain, the Artificial Intelligence
technology function has so far been
classified as an emerging technology
segment. Moreover, the AI market in India
has, till now, been dominated by the MNC
Technology and the GIC or Captive firms.
Domestic firms, Indian startups, and
even International Technology startups
across various sectors have, so far, not
made a significant investment, in terms
of operations and scale, in the Indian
AI market. Additionally, IT services and
Boutique AI & Analytics firms had not,
till a couple of years ago, developed
full-fledged AI offerings in India for their
clients.
The AI market has, however, started to
transform. As revealed in the Computer
Vision Market study and the AI and
Analytics start-up investment study, the
Data Science space in India, specifically
the AI function, is evolving into an
innovative enterprise segment.
MNC Technology, Domestic, Advanced
Engineering, Healthcare, and Semi-
conductor firms, to name a few, are now
developing advanced Artificial Intelligence
capabilities in India and providing top-
notch AI services to firms across various
industries and geographies.
AIMResearch has developed this study to
research the development and scope of the
AI market in India.
AIMResearch has gone a step further
to determine the market size of the
Boutique AI and Analytics firms providing
specialized AI services. These include the
following types of firms:
Overview of the Artificial
Intelligence Market in India
The AI market has been analyzed on the basis of various segments, including the sec-
tor the enterprises fall under and the type of companies.

8
AIM Research
• End-to-end Analytics Products &
Services
• Artificial Intelligence / Computer
Vision
• IoT / Logistics
• Natural Language Processing
• Robotics
As covered in the AIMResearch
Emerging Technologies report, the AI
function in India has felt the effects of
the recessionary environment, which
has been caused by the unfortunate
Covid pandemic. While the effects of
the downturn have resulted in some
contraction in the overall addressable AI
market and in AI jobs, the India AI market
is still extremely resilient - the contraction
in AI salaries and advertised open jobs
are all expected to recover over the next
quarter or so and register marginal year-
on-year growth in 2020-2021 over the
corresponding 2019-2020 figures.
Scope and Methodology of Report
The scope of the report covers the total
addressable market in India within
the Artificial Intelligence domain. The
companies and enterprises considered
cover the firms that have operations based
in India, regardless of the geography and/
or the clients the firms are servicing.
The firms include Indian corporations
(domestic conglomerates and domestic IT
firms), MNC firms (including Technology
and Engineering firms), Hi-tech
Electronic / Chip & Semiconductor firms,
Communications & Media enterprises,
Banking & Financial (Public Sector,
Private Sector, and Captives) firms, Energy,
Industrial, Mobile Payments (Fintech),
eCommerce, and Healthcare firms.
The market size has been categorized by
Company Type and Industries or Sectors.
The research also studies the salaries of AI
personnel and the salaries advertised for
AI open jobs.
The reference period of the data in the
report is July – August 2020. The source
of the data in this report includes all
secondary sources in the public domain
and some primary sources as well through
discussions with hiring managers and
domain leaders.

9
Key Highlights
Market value figures are represented in USD while salary figures are represented in
INR across the research report.
• The Indian Artificial Intelligence
market is valued at $6.4 Bn as of
July – August 2020. As mentioned,
this covers the revenues from all AI
operations originating from India
regardless of stakeholder or client
type, type of firm providing AI
services, and geography of client.
• The AI market share and size in
relation to the Types of Companies
is the highest across the broad MNC
IT / Technology / Electronic category,
which includes High-end Software
and Hardware technology, IT Services,
Semi-conductor, and Electronics firms.
The combined market share is 36.2%
• The market size by Industries or
Sectors is the highest across the
IT Services sector, followed by
the Technology sector (including
Software and Hardware firms), with
a market share of 41.1% and 23.3%
respectively.
• Apart from the IT and Technology
sectors, the BFSI sector has a market
share of AI services at 9.6%.
• There are close to 91000 Artificial
Intelligence personnel working across
enterprises in India, with a median
salary of INR 14.7 Lakhs.
• The highest median salaries are drawn
by AI professionals in Mumbai, at
INR 16.7 Lakhs.
• Close to 16500 open positions
related to AI are currently available
to be filled in India, as of July 2020.
Bengaluru, just as it does for other
Data Science and IT services roles,
tops the location for the highest
proportion of open jobs.

10
AIM Research
Market Size (In $ mn) By CompanyType
2314.3
0
500
1000
1500
2000
2500
1619.3
564.1
451.9
371.6 305.1
215.1 371.6
132.6 111.9 85.2
M
N
C
IT
/Tech
/Elect
D
om
estic
IT
D
om
estic
firm
s
M
N
C
Engineering
BoutiqueA
I&
A
nalytics
PSU
/Public
R
esearch
C
onsulting
M
N
C
O
ther
A
ggregatorStartups
eC
om
m
erece
C
aptive

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Artificial Intelligence Market Size
By Company Type
The Artificial Intelligence market size in
India covers the companies providing Ar-
tificial Intelligence services from the India
geography, regardless of the geographical
market and type of industry the services
are provided to. The Indian Artificial In-
telligence market has been valued at $6.4
Bn.
In terms of Company Type, the broad
based MNC IT, Technology, and Electron-
ics category has the highest share of the
AI market at 36.2% in percentage share,
and $2314.3Mn in terms of Market Value.
The large share of this category is logical
given the broad-based firms that fall under
this category, all which have significant
AI operations in India. Accenture has the
largest AI operations base in India across
the broad MNC IT and Tech category.
The enterprises that fall under this catego-
ry include:
• MNC IT Services firms, such as Ac-
centure, IBM, and Capgemini, among
others, which provide AI services, as
part of the larger Analytics & Digital
service offerings, to their international
and domestic clients.
• Software Technology firms, such as
Microsoft, Google, SAP, Oracle and
AWS, among others – Microsoft has
the largest AI operations in India
across this sub-category. These firms
are pioneering AI across all technolo-
gy services, including Intelligent cloud,
AI-as-a-service, and Edge Computing
(developed along with Network &
Telecom firms).
• MNC Hardware Technology, Net-
working Equipment, and MNC
Telecom firms, including Cisco,
MNC IT |Technology | Semi-conductor | Electronics

12
AIM Research
Juniper, Nokia, Verizon, and AT&T,
among others. The AI technologies,
adopted by these firms, are pioneer-
ing next generation 5G Networks
(developed along with the Electronic
and Semi-conductor firms), Edge
Computing, and overall Connectivity /
IoT platforms. 5G / Telecom network
equipment leader, Ericsson, has the
largest AI operations in this sub-cate-
gory.
• Electronics and High-end Semi-con-
ductor firms, such as Samsung, Intel,
Nvidia, Qualcomm, and AMD among
others, which develop AI technologies
for Smart Phones, Processing Units,
Chips, Memory Devices, Servers, Data
Centres, and other sensor-driven tech-
nologies. This includes AI technologies
for Camera sensors, Facial Recogni-
tion devices, Driverless vehicles, Auto-
mation, and Cloud and IoT platforms.
Samsung and Intel have the largest
contribution in this sub-category.
The scope and range of firms across the
MNC Tech category exemplifies the depth
of the AI market in India across vari-
ous specializations, including Intelligent
Cloud, Edge Computing, IoT, and 5G
Networks, to name a few.
Domestic IT
Most of the firms under this category are operating specialized AI Research centres in
India that service the global AI and Data Science initiatives and capabilities of these
firms.
The broad MNC Tech company type is
followed by the Domestic IT company
type, which has a 25.4% AI market share
at a value of $1619.3 Mn. This category
covers the Domestic IT and ITES firms,
including TCS, Infosys, Wipro, HCL Tech,
Tech Mahindra, among others. Just like
the MNC IT Services firms, these firms
provide AI services within the broader
Analytics and Digital offerings to interna-
tional and domestic clients.

13
Captive
Domestic Firms
JP Morgan Chase has the highest market share contribution across the Captive
category.
The Domestic firms have a collective AI market share of 7.1% at a market value of
451.9 Mn.
The Captive company type is followed by
the category of Domestic firms. This cate-
gory of firms, which are headquartered in
India, includes the Telecom, Oil and Gas,
Pharma, Private Banks, Automotive, and
Cross-sector conglomerates.
The Domestic IT category is followed by
the broad category of Captive firms. The
Captive category has an 8.8% AI market
share at a value of 564.1 Mn. This cate-
gory includes both Captive Banking and
Healthcare companies.
The MNC Banking and Pharma &
Healthcare companies that have Glob-
al In-house Operations (GIC) in India
constitute this category. AIMResearch has
further broken-down this category in the
sub-section below.
Within this category, TCS has the highest
AI market share contribution across all
Domestic IT and ITES companies, just as
it had in the CV market.

14
AIM Research
The Reliance group has the largest market
share contribution across this category,
with AI operations across its Oil & Gas,
Retail, Jio Infocomm, and other segments.
Other firms in this category include indus-
try leaders like Airtel, ICICI Bank, HDFC
Bank, Tata Motors, Tata Communica-
tions, Mahindra & Mahindra, Larsen &
Toubro, and the Aditya Birla Group.
The market value of the AI services of
Domestic firms is indicative of the focus of
organizations to leverage Data Science for
Operational Efficiency, Sales and Mar-
keting, Customer acquisition, and overall
growth, all while reducing time to market
for products and services.
AIMResearch has separately assessed the
market contribution of Indian PSU firms
and Government Research institutes.
The MNC Engineering company type fol-
lows the category of Domestic firms. The
MNC Engineering category has a market
contribution of $371.6 Mn, with a market
share of 5.8%.
This category includes Multinational Engi-
neering, Industrial, and Automotive firms.
These companies include, Bosch, Siemens,
Honeywell, ABB, GE, Hitachi, Delphi,
Volvo, Ford, and GM, among others, that
incorporate AI technologies across their
high-end industrial, automation, IoT, and
automotive products and services. These
include Machine-to-Machine platforms,
Optical sensors, Industrial devices, IoT
sensors, Driverless technologies, and other
Machine-based technologies.
Bosch and GE have the highest market shares in this category.The range of compa-
nies in this category highlights the strength of the AI market in India across capabili-
ties, talent, skills, and technology infrastructure.
MNC Engineering

15
The eCommerce company type is followed
by the broad category of Boutique Analyt-
ics & AI firms, which have a market share
of 3.4%, at a market value of $215.1 Mn.
This category of largely domestic firms
includes Analytics firms that provide AI
services as part of the larger Analytics
offering, and specialized AI firms that
utilize AI, Machine Learning, and Robot-
ics services as part of their Data Science
offerings. The former companies include
Ugam, Fractal Analytics, Automation
Anywhere, Tiger Analytics, and MuSigma,
among others.
While the latter companies include such
specialized AI & Robotics firms as Cell-
strat, Wobot Intelligence, Mad Street Den,
AgNext, Niramai Health, and Sigtuple,
among others.
The category of eCommerce company
follows the MNC Engineering category,
with a 4.8% market share and $ 305.1
Mn market value.
The companies represented in this cate-
gory include Flipkart and Amazon, which
service the eCommerce and Retail markets
through the AI services; Tesco, Target,
and Walmart, which solely service the AI
segments of their International eCom-
merce divisions; and Travel & Hospitality
portals that facilitate tickets and hotel
bookings. AI capabilities are leveraged
across almost all functions eCommerce.
From Product Targeting, Market Segmen-
tation, Pricing, Digital Platforms, Quality,
Merchandise Classification, and Shipping
& Logistics. AI and Machine Learning
applications are utilized across the entire
value chain of eCommerce and Retail.
eCommerce
Boutique AI & Analytics
The AI market within the eCommerce category has the potential to grow to $2.75 Bn
within the next decade.

16
AIM Research
The broad category of Public Sector
Undertaking firms and Government
Research Institutes are next in the list
with a market share of 3.4% at a market
value of $214.4 Mn. The PSU firms
include the Maharatna corporations of
ONGC, Indian Oil, HPCL, and BPCL
to name a few. The institutes include
Government-funded Scientific Research
& Development organizations, including
DRDO, ISRO and HAL.
These organizations utilize AI technologies
and Machine Learning models across the
Defence, Space, and Aeronautics Research
& Development segments respectively.
The research institutes also include
engineering and technology research
institutions, such as IISc and IITs
PSU & Government Research
Many of these institutes have in-house AI incubation units, providing consulting and
mentoring services to start-up AI firms and AI services to other science and technolo-
gy institutions (both public and private).
Market Size Share (%) By CompanyType
36.2%
0
5%
10%
25%
30%
20%
15%
35%
40%
25.4%
8.8%
7.1%
5.8% 4.8% 3.4% 3.4%
2.1%
1.8% 1.3%
M
N
C
IT
/Tech
/Elect
D
om
estic
IT
D
om
estic
firm
s
M
N
C
Engineering
BoutiqueA
I&
A
nalytics
PSU
/Public
R
esearch
C
onsulting
M
N
C
O
ther
A
ggregatorStartups
eC
om
m
erece
C
aptive

17
The market share of Consulting firms is
next in the list at 2.1 % at a market value
of $ 132.6 Mn. The AI market of these
firms is restricted to specialized AI services
as part of the broader IT consulting
services that some of these firms provide
their clients.
The remaining international corporations,
classified as MNC Other, including MNC
FMCG and Automotive firms, are next
in the list. This category, in terms of AI
market size and value, has a 1.8% market
share and $111.9 Mn market value.
Aggregator Startups complete the list
of the type or category of firms. These
startups include Zomato, Ola, and Swiggy,
which utilize AI to expand their customer
base. These firms utilize data models and
analytics for customer acquisition, product
curation, tracking, and recommendation
engines.
The wide scale of companies that have
set-up Artificial Intelligence operations in
India indicates not just the promise that
AI provides for the Indian market, but
also the confidence that enterprises and
organizations have in the AI capabilities of
the Indian ecosystem and workforce.
Consulting
MNC Other
Aggregator Startups
The AI contribution of this category of firms has a market value of $85.2 Mn and a
market share of 1.3%.

18
AIM Research
Captive - Banking Captive - Healthcare
0
50
100
250
300
200
150
350
400
450
500
471.5
92.6
Captive Market Size (in $ Mn)

19
AI Market Share of Captive Firms
The Artificial Intelligence Captive market
covers MNC firms that have set-up GICs
or Global In-house Centres, which handle
all their non-core operations, including
the Artificial Intelligence operations.
These firms typically fall under one of two
sectors - Banking and Healthcare.
The entire Captive market for AI in India
is valued at $564.1 Mn.
The Captive Banking firms include
Investment Banks, Hedge Funds, and
International Banks. These firms have
their AI operations serviced from the India
GIC for their global operations and have
the majority share of the Captive market
at 83.6%, at a market value of $471.5
Mn.
The Captive Healthcare firms have a
market share of 16.4%, at a market value
of $92.6 Mn – the Captive healthcare
sub-category includes healthcare, health
insurance, and pharma companies.
JP Morgan Chase has the highest market
share across the entire Captive category,
including the Captive – Banking sub-
category.
The AI operations of HSBC, Goldman
Sachs, Citibank, and Wells Fargo follow
the AI operations of JP Morgan Chase in
terms of market share size in the Captive -
Banking sub-category.
UnitedHealth Group (including the
healthcare and health insurance
operations) and Novartis (Pharma
operations) have the highest market share
in the Captive – Healthcare sub-category.

20
AIM Research
Captive - Banking Captive - Healthcare
0
10
20
50
60
40
30
70
80
90
83.6%
16.4%
Captive Break-up (Captive Market - $564.1 Mn)

21
Artificial Intelligence Market Size
By Sector / Industry
AIMResearch has analyzed the AI market
by sector or industries.
The sector-wise distribution of AI services,
covers:
• Firms that are exclusively associated
with a sector or industry – such as
Flipkart with eCommerce
• Firms within another segment, such as
Boutique AI and Analytics, but pro-
vide exclusive services to a particular
function within an industry – such as
Mad Street Den providing Computer
Vision and Artificial Intelligence ser-
vices to the Retail sector.

22
AIM Research
AI in IT Services
In terms of Sector or Industry, the broad-
based IT services industry or sector has
the highest share of the AI market at
41.4%, and $2625 Mn in market value.
The contributors to the IT services’ sector
market value include Domestic and MNC
firms:
• Domestic firms: TCS, Wipro,
Infosys, Tech Mahindra, and HCL
Technologies, to name a few.
• MNC firms: Accenture, IBM, and
Capgemini
The market size and market share
highlight the impact of the IT services
industry (both Domestic and MNC) on
the AI offerings serviced from India.
TCS and Accenture are the largest
contributors of market share in this
industry category. This sector includes
contribution from the Boutique AI &
Analytics firms that provide AI services to
domestic and international clients. These
firms were referenced in the previous
section and include Fractal Analytics,
Ugam Solutions, AbsolutData, and
LatentView Analytics, among others.
The AI services within the IT services sector typically fall within the broad Digital and
Analytics segment – these services are provided as part of the larger IT consulting,
delivery, and platform integration offerings of the IT companies.

23
The contribution from the Technology
sector, which includes Software &
Hardware technologies, follows the IT
services sector. The contribution of the
Technology sector covers a 23.3% market
share and $1488 Mn market value.
This sector covers Software, Cloud
Computing, Semi-conductor, Database
technologies, Server platforms, and
Networking solutions, to name a few,
technology segments.
The companies contributing to this sector
largely cover MNC firms, and include the
following firms servicing various sub-
verticals:
• Software, and Cloud Computing:
Microsoft, Google, Oracle, AWS, SAP,
Adobe
• Social Media: Facebook
• Computer and Server Hardware: Dell,
HP Enterprise, VMware
• Network Hardware: Cisco, Juniper
• Telecom Equipment: Ericsson, Nokia,
Broadcom
• Semi-conductors & High-End
Electronics: Intel, Nvidia, Qualcomm,
Samsung Electronics, Samsung
Research, NXP, Texas Instruments,
AMD
• Medical Technology and Devices
utilized for AI-driven medical
diagnosis: Philips, GE Healthcare,
Siemens Healthcare, Carl Zeiss
The vast array of firms and sub-verticals
demonstrates the level of contribution of
this sector in the AI space
AI inTechnology – Software & HardwareTechnologies | Chip &
Semi-conductors | Electronic Devices
Most of the firms in have set-up exclusive Data Science Research Centres of
Excellence that drive significant innovation for these firms in the area of AI.

24
AIM Research
The MNC firms across this sector are
driving Research & Development in India
to train AI models, which was, till now,
carried out only in the regional hubs of
these firms across US, Western Europe,
Israel, Japan, South Korea, and Taiwan.
Finally, the advancements in AI across
the Technology sector are spanning other
sectors as well:
• AI in Edge Computing across Cloud
Computing and Telecom Service
Provider firms
• AI in 5G, Smart Homes, and
Connected Devices across Telecom
Equipment, Semi-conductor, and
Telecom Service Provider firms
• AI in IoT & Smart Cities across
the Semi-conductor, Engineering
& Industrials, Automotive, and
Government enterprises
The contribution from the BFSI sector
follows the Technology sector – the BFSI
contribution is $615.3 Mn in market
value and 9.6% in market share. The
firms in the BFSI sector were one of the
first to utilize Data Science services to
derive insights on consumers. The BFSI
sector is now employing AI across various
functions:
• Digital Services to gain a competitive
advantage, drive efficiencies, and
improve customer experience
• Robotics and Natural Language
Processing (NLP) to enhance on-
demand customer experience and
satisfaction
• Adoption of algorithms in Investments
to increase portfolio returns and
reduce risks, both for institutional and
retail investors
• AI-based financial management tools
to deliver personalized financial
management advice and alerts to
customers
AI in BFSI

25
The BFSI sector includes Domestic Private, PSU, and MNC Captive BFSI firms.
AI in Engineering | Industrials | Automation
• Smart transaction analysis programs
and tools to detect fraud and money-
laundering transactions
These examples are just a few of the
instances in which AI delivers innovation
across the ss areas of investments,
financial advice, and overall BFSI
operations
These include ICICI Bank, SBI, HDFC
Bank, Axis Bank, Bajaj Finance, Kotak
Mahindra, and Aditya Birla Finance;
JP Morgan Chase, HSBC, Citibank,
American Express, Barclays, Standard
Chartered, and Nomura, to name a few.
The Engineering and Industrial sector
follows the BFSI sector. The contribution
of this sector is $382.9 Mn in market
value and 6% in market share.
The Engineering and Industrial sector
covers International and Domestic firms
that integrate AI and Deep Science models
in their Engineering, Manufacturing, and
Automation services. AI is utilized in
design, simulation, quality analysis, and
maintenance:
• AI-driven design and blueprinting
enables the development of digital
prototypes before the production
phase
• AI in conjunction with IoT sensors
/ platforms facilitates real-time
predictive tool maintenance to reduce
unplanned machine downtime
• AI used in tooling and machine

26
AIM Research
manufacturing detects the slightest of
anomalies and can carry out real-
time tracking and recall of defective
equipment
• AI in Infrastructure, combined with
IoT and 5G connectivity, is facilitating
the development of solutions for
smart cities and smart utilities
• AI, combined with navigation systems,
robots, and drone systems, is used
across defence, aviation, surveillance,
topography mapping, and forestry
and farm / crop management
The organizations across this sector include Bosch, Siemens, Honeywell, GE
Engineering,ABB, and Johnson Controls, to name a few.
These organizations also develop optical
products for use in camera technology,
security, and facial recognition. This sector
includes Domestic companies utilizing and
developing AI solutions, such as Larsen
& Toubro Engineering, and Government-
funded Defence and Science Enterprises,
including DRDO, ISRO, and Hindustan
Aeronautics Limited (HAL).
This sector also includes exclusive
Boutique AI & Analytics firms that
provide solutions for the Engineering and
Industrials sectors, such as Netradyne,
The Hi-Tech Robotic Systemz, and Wobot
Intelligence.

27
R
etail

28
AIM Research
The contribution of AI across this broad
sector is significant, considering the
instances AI technologies are utilized and
the scope of growth over the next decade:
• AI is utilized across the entire supply-
chain for the eCommerce and Retail
sector, starting with merchandise
procurement and classification, and
quality, billing and payments, logistics
tracking, delivery, and even managing
and tracking customer feedback and
complaints.
• From a portal and platform
perspective, AI is utilized in product
recommendations for consumers,
across the digital and online platforms
– enhancing the shopping experience
of customers, by pushing required
product recommendations and
suggestions to shoppers.
• AI is utilized by Marketplace and
Retail Aggregator firms serving as
a conduit between Consumers and
small-box retail stores, including
kirana shops. Herein, AI is utilized
across the supply-chain by the
Aggregator firms.
The companies utilizing AI across this
broad sector include:
• Domestic eCommerce Players:
Flipkart, Myntra
• Domestic Retail Players: Trent Retail
(Tata Group), Reliance Retail (incl
Reliance Digital, AJIO, and Jio Mart),
Aditya Birla Retail
• International Retail and eCommerce
Players / Operations: Amazon (India
and International), Walmart Labs,
Walmart Retail, Target, Tesco, Lowe’s
• Marketplace and Retail Aggregators:
BigBasket, Grofers, Olx
• Boutique AI and Analytics: Firms,
such as Mad Street Den, that provide
AI services to the Retail sector
The broad eCommerce and Retail sector
(which includes the Retail Aggregation
sub-sector) follows the Engineering and
Industrials sector with a contribution of
$317.8 Mn in market value and 5.0% in
market share.
AI in Retail - eCommerce | Big-Brand Retail | Retail Aggregation

29
The potential for AI in the entire Retail
sector, which includes eCommerce and
Retail Aggregators, is tremendous.
The growth will be driven by the shift
to eCommerce for almost all the retail
players, greater adoption of digital and
online shopping by consumers, and a need
to strategically and functionally deliver
value to consumers and gain market share
by the various firms and enterprises.
AI in Energy | Mining & Metals
The Retail sector is followed by the
Energy | Mining & Metals sector that
contributes 2.3% of market share
and $145.9 Mn in terms of value. AI
operations across this wide-ranging
sector cover numerous industries and
sub-verticals, across PSU, Domestic
Conglomerates, and International firms,
including:
• Energy / Oil & Gas – Reliance, Shell,
BPCL, IOCL
• Steel and Metals – Tata Steel and JSW
Steel
While the size of the AI operations of
the Domestic conglomerates, especially
Reliance Oil & Gas and Tata Steel, make
up the majority of the market share,
the scale of operations across the MNC
firms is significant. Shell has the highest
contribution of the MNC firms in this
Energy | Mining & Metals sector.
With the entry of new players in this space, such as JioMart, and the expansion
of Hospitality and Food Aggregators, such as Swiggy and Zomato, into Retail
Aggregation,AI services across the entire Retail sector (including eCommerce) in
India are expected to value $5.25 Bn within the next decade.
AI in Energy | Mining & Metals

30
AIM Research
The Energy | Mining & Metals vertical
is followed by the Telecom sector, which
contributes $138 Mn to the AI market,
with a market share of 2.2%.
The Telecom vertical includes MNC
firms such as Verizon and AT&T that
are developing AI capabilities for use in
IoT, Connected Devices, and other 5G
connectivity solutions.
The sector includes Domestic Telecom
providers, Reliance Jio Infocomm, Airtel,
and Tata Communications, that are also
developing AI solutions for the 5G and
existing 4G connectivity services. AI is
adopted by the Telecom firms across the
Telecom value-chain and various industry
use cases:
• Telecom Networks: Telecom firms are
collaborating on AI in Core Networks
with Network Equipment firms –
Ericsson and Nokia
• Edge Computing: AI in Telecom is
adopted in Mobile Edge Computing
and Network Virtualization. The
telecom firms are collaborating on AI
with technology firms, MS (Azure)
and AWS (Wavelength), to name a few
• Connectivity Solutions: AI in Telecom
is adopted in Connected Cars, Smart
Devices, Smart Homes, Private
Networks, IoT Platforms, and Smart
Cities
• Consumer Plans and Customer
Services: AI is adopted by Telecom
firms to identify the best plans for
consumers, and provide intelligent
customer service through SMS, App,
and Push Notifications
AI inTelecom

31
The Telecom vertical is followed by the
Automotive sector, which contributes
$133.9 Mn in terms of value and 2.1% in
terms of market share. This sector includes
automobile manufacturers that are
developing in-house AI and CV solutions
for driverless technologies, including AI-
driven Sensor, Radar, Lidar, and Optical
solutions.
AI is also adopted by the Automobile
firms for predictive maintenance, not
just at factory floor and machinery
equipment, but also for the vehicles and
cars. The firms that are utilizing AI for the
Automotive segment are:
• MNC Automotive firms: Hyundai,
Ford, Volvo, and Honda
• Domestic firms – Tata Motors
(Jaguar / Land Rover), Mahindra
& Mahindra, Maruti Suzuki, TVS
Motors
• Automotive Navigation and Mapping
Technologies firms: Here Technologies
The Automotive sector is followed by the
Education and Public Research sector,
which contributes $126.7 Mn to the
Indian AI market, with a market share of
2%.
In terms of overall value, this sector is
significant as it covers the prestigious IIT,
IISc, and other engineering institutions.
The market value covers the AI
contribution across research, patents, AI
consulting to government and private
enterprises, and incubator firms supported
by these institutions.
The prestigious IIT institutes are the
largest contributors of value in this sector.
AI in Automotive
AI in Education and Public Research

32
AIM Research
The Research and Education sector is
followed by the Pharma & Healthcare
sector, with a contribution to the Indian
AI market of $120.3 Mn and a 1.9%
market share.
While this sector is dominated by the
Captive units of the MNC Pharma &
Healthcare firms, including Novartis and
UnitedHealth Group, the Indian pharma
firms of Dr. Reddy’s Laboratories, Sun
Pharma, and Cipla, among others, provide
a significant contribution to the AI market
within the Pharma & Healthcare sector.
There are other sectors that contribute
to the AI market in India. These sectors
have a small but significant and steadily
expanding market size and share. The
following are the remaining sectors that
contribute to the AI market:
• Travel & Hospitality – The
contribution to the AI market of this
sector is $92.6 Mn in market size and
1.4% in market share. The combined
sector includes platforms that enable
ticket booking and hotel reservations,
and aggregator apps that enable
online food ordering and delivery. AI
is used to connect the consumer with
the service providers over an online
or digital marketplace platform.
The firms across this sector that are
utilizing AI include Domestic firms
– Zomato, Ola, Oyo, Makemytrip,
and MNC firms – Expedia. AI is
increasingly utilized to cut costs
across this sector during this period
of severe contraction in business and
operations.
AI in Pharma & Healthcare
AI in Other Sectors

33
• Digital Media – The contribution
to the AI market of this sector
is $73.9 Mn in market size and
1.2% in market share. The Digital
media sector is adopting AI for
targeted content and advertising
across all platforms, including
digital, online, and mobile. This
sector includes Domestic and
International partnerships across
Content Production and Distribution,
Advertising, and Digital Marketing.
The AI market in this sector also
includes Boutique Analytics and
AI firms that develop AI solutions
across Digital and Media platforms.
WPP is the largest contributor to
the AI market in this sector. Within
this sector, the content distribution
services include TV, Box Office, and
Streaming (OTT) distribution:
• Content: Star India (including
Disney+ Hotstar), Sony Entertainment
(including SonyLiv), Viacom
Network18 (including Voot), Zee
(including Zee5), among others
• Advertising & Digital Marketing:
WPP (all divisions and units), Nielsen
• Boutique AI and Analytics firms:
Uncanny Vision and Snap2Insights
• FMCG: The contribution of the
FMCG sector to the AI market in
India is $55.2 Mn in market size and
0.9% in market share. This sector
covers both Domestic and FMCG
companies. Unilever is the largest
contributor to this sector. Other
contributors to the AI market include
MNC firms such as Kraft, Pepsi,
Proctor & Gamble (P&G), and Coca
Cola, to name a few, and Domestic
FMCG players, such as ITC.
• Fintech: The contribution of the
Fintech sector has been listed
separately from the BFSI sector as the

34
AIM Research
Fintech vertical is rapidly emerging as
key adopter of AI and ML platforms
and technologies. With an exponential
increase in adoption in digital and
online payments, especially after the
lockdown caused by the pandemic,
the contribution to the Indian AI
market of the Fintech sector $54.9
Mn at just under 0.9%. While this
may seem small as of now, it is
expected to grow almost ten-fold in
the in the next 5 years. The firms in
the sector include the domestic fintech
startups, PayTm, PhonePe, the MNC
fintech players of Mastercard and
Visa, and Boutique Analytics players
as well.
• Cross-Sector (including Agri-Tech):
Other firms that contribute to the
AI market across several sectors,
including the Agri-tech sector, have
a market share of 0.2% and a
market size of $15.2 Mn. The Agri-
Tech sector is dominated by start-
ups that are providing AI services
to the Agriculture vertical; these
include AgNext and Intello Labs
that are seeking to revolutionize the
Agriculture space by combining AI,
robotics and drone systems

35
Domestic Boutique Start-ups
AI Market Break-up
The Boutique Start-up company type /
category has a market value of $215.1
Mn.
AIMResearch has further segmented this
market on the basis of the Data Science
services these firms offer:
• Analytics Products & Services
• Artificial Intelligence / Computer
Vision
• Robotics
• IoT / Logistics AI
• Natural Language Processing
The contribution of the Start-ups covers:
• Market Value (in $ Mn) across Start-
up categories
• Market Share across Start-up Catego-
ries
Analytics Product &
Services
Artificial Intelligence Robotics IoT / Logistics Natural Language
Processing
0
20
40
60
80
100
120
140
160
145.6
55.4
6.0 4.8 3.2
Boutique AI & Analytics Market Size Break-up ($ Mn)

36
AIM Research
The Analytics Products and Services firms
have the largest market contribution at
$145.6 Mn, at a share of 67.7% across
the Domestic Boutique Start-up space.
These firms include firms that provide
end-to-end analytics services, including
Data Analytics and other Data Science
services.
The services provided by these firms
depend on the requirement of the
customer or the client, and some projects
include development of exclusive AI
technologies and platforms.
The contribution of the next segments
of start-ups, is significantly lower - the
Robotics firms have a market contribution
of $6.0 Mn at a 2.8% share. These are
followed by IoT / Logistics start-up firms
that have a market contribution of $4.8
Mn and a share of 2.3% and the Natural
Language Processing firms that have a
market contribution of $3.2 Mn and a
share of 1.5% within the Boutique Start-
up space
The specialized Artificial Intelligence firms have a combined market value for AI
services at $55.4 Mn and a share of 25.8% within the Boutique start-up space.
Start-up Market Break-up

37
Analytics Product
& Services
Artificial Intelligence Robotics IoT / Logistics Natural Language
Processing
67.7%
25.8%
2.8% 2.3% 1.5%
Boutique AI & Analytics Market Share (%)
0%
10%
20%
30%
40%
50%
60%
70%
80%

38
AIM Research
AIMResearch has researched the salaries
drawn by AI personnel and has provided
the findings on the basis of
• Salary-wise distribution of personnel
• City-wise Median Salary Levels
Salaries of
Artificial Intelligence Personnel
0-3
Lakhs
3-6
Lakhs
6-10
Lakhs
10-15
Lakhs
15-25
Lakhs
25-50
Lakhs
50-75
Lakhs
75-100
Lakhs
1Cr+
15.1%
25.0%
17.9%
13.4%
14.2%
9.8%
2.2% 1.5% 0.8%
0
5%
10%
15%
20%
25%
30%
Salary - wise % Distribution of Personnel

39
The salary-wise distribution plot of
personnel is not the typical curve or slope
that is plotted for other Data Science
functions. While the highest distribution
of personnel is in the 3-6 Lakhs salary
bracket, the overall salary curve is flatter.
Artificial Intelligence is a specialized field
and the median salary is higher than
the median salary of the professionals
across the Computer Vision domain and
the highest salary across all Emerging
Technologies.
Nonetheless, the median salary across AI
is a bit lower than expected, as the salaries
have been researched at a time when the
economy is facing a recessionary outlook,
with many firms having temporarily
reduced the salaries of employees till the
recessionary environment persists.
The median salary of Artificial Intelligence professionals is INR 14.7 Lakhs.
The largest proportion of personnel is in the 3-6 Lakhs salary level at 25%.This is
followed by the 6-10 Lakhs level that has 17.9 % of the professionals within this bracket.
Distribution of Personnel by Salary

40
AIM Research
This is followed by the entry level 0-3
Lakhs category that has a proportion of
15.1% of the AI professionals drawing
salaries within this bracket.
The mid-senior salary category of 15-
25 Lakhs has a proportion of salaries at
14.2%. This illuminates the scale of devel-
opment of the AI domain in India, as the
proportion of people across this level is
greater than the salaries of the middle cat-
egory of 10-15 Lakhs, which is at 13.4%.
The senior level salary bracket of 25-50
Lakhs has a proportion of personnel at
9.8%. Finally, the leadership brackets
with salaries greater than 50 Lakhs have
a combined proportion of 4.5% of the
personnel, with a break-up of 2.2% in
the 50-75 Lakhs bracket, 1.5% in 75-100
Lakhs bracket, and 0.8% in the 1 Crore +
bracket.
The City-wise Median salary levels reveal
that Mumbai has the highest median sala-
ry for AI professionals at INR 16.7 Lakhs.
Mumbai is followed by Bengaluru and
Delhi (NCR) which have closely similar
salaries of INR 15 Lakhs and INR 14.9
Lakhs respectively. This is followed by
Pune and Hyderabad at salaries of INR
12.3 and 11.6 Lakhs respectively. Chennai
completes the list of large cities, with a
median salary of INR 11 Lakhs.
Almost 30% of the personnel across the AI domain have a salary greater than 15
Lakhs.This exemplifies the maturing nature and demand for experienced and qualified
personnel across the AI domain.
City-wise Median Salary Levels

41
The higher median salary of Mumbai is
due to the concentration of many Interna-
tional and Domestic banks, financial insti-
tutions, and mutual funds across Mumbai.
Moreover, many Domestic firms have their
headquarters, which include the Data Sci-
ence functions, based out of Mumbai.
Moreover, the relatively higher cost of
living in Mumbai results in a propor-
tionately higher disbursal of salaries for
professionals working in the city.
The relatively higher median salary of Data Scientists across Investment Banks
automatically drives up the median salary of Mumbai.
16.7
15.0 14.9
12.3 11.6
11.0
0
2
4
6
8
10
12
14
16
18
City-wise Median Salary (in Lakhs)
Bengaluru Delhi (NCR) Pune Hyderabad ChennaiMumbai

42
AIM Research
AIMResearch has researched the ex-
perience levels of Artificial Intelligence
personnel and has provided the findings
on the basis of:
• Experience-wise distribution of per-
sonnel
• City-wise Median Experience Levels
The median experience level of Artificial
Intelligence professionals is 7.1 years.
The relatively higher median experience
level highlights the maturing nature of the
AI domain in India.
Experience-wise Classification of
Artificial Intelligence Personnel
The experience-wise distribution plot re-
veals the highest distribution of personnel
in the mid-junior experience level of 2-5
years, with a proportion of 28.6%. The
second highest distribution of personnel,
however, reveals the maturing nature of
the AI domain.
The distribution of personnel is the 2nd
highest in the senior experience level of
10-15 years. This is followed the middle
experience level of 5-7 years that has a
proportion of 13.7% of the personnel, the
mid-senior level of 7-10 years at 11.9%,
and the leadership level (15+ years) at
11.4%.
The lowest concentration of professionals
is across the entry, 0-1 years, and junior
level, 1-2 years, of experience at 8.8% and
11.2% respectively.
Experience-wise Distribution of Personnel
The combined distribution across mid-senior, senior, and leadership levels of
experience is – 37.7%.

43
This concentration of professionals across
the senior experience level highlights the
strengthening state of the AI function in
India – programme managers and leaders
of many years of experience are leading
cross-geography teams of AI professionals.
The Indian AI market is no longer providing back-office services to the global Data
Science domain but is driving key Research & Development initiatives of AI platforms
and technologies across several sectors and enterprises.
8.8%
11.2%
28.6%
13.7%
11.9%
14.4%
11.4%
0
5%
10%
15%
20%
25%
30%
35%
0-1
Years
1-2
Years
2-5
Years
5-7
Years
7-10
Years
10-15
Years
15+
Years
Experience-wise % Distribution of Personnel

44
AIM Research
The city-wise median experience level re-
veals that Mumbai has the highest median
experience level at 8 Years. This is consis-
tent with the type of roles and companies
in Mumbai.
As mentioned in the previous section on
salaries, most of the Investment banks,
domestic financial institutions, and inter-
national banks have their AI operations
based out of Mumbai – Moreover, most
of the domestic firms, headquartered in
Mumbai, have their AI operations also
based out of the city – this drives the
median experience level of the city to the
highest position.
Mumbai is followed by Delhi (NCR), with
median experience of 7.4 years. Many
ITES firms and some IT services firms
have their data science operations head-
quartered in Delhi – this automatically
pushes the median experience level of the
city.
Bengaluru is in 3rd
position with a median
experience level of 7.1 years. Bengaluru
is the hub of data science and AI R&D,
having the highest concentration of data
science professionals across the country
- covering Technology, Software, Engineer-
ing, and Semi-conductor firms.
Moreover, the city is the hub of start-ups
not just in data science but also other
technology functions – the start-ups
typically have a relatively lower median
experience level.
With a large base of professionals across
all company types, including start-ups,
Bengaluru has a lower median experience
level compared to Mumbai and Delhi.
The median experience of Chennai is also
7.1 years - many Technology firms and
Semi-conductor firms have set-up AI R&D
centers in Chennai and have hired expe-
rienced professionals to lead and manage
these centers.
City-wise Median Experience Levels

45
Chennai is followed by Pune with a
median experience level of 6.8 years. Pune
has many IT firms with AI centres based
in the city.
Pune is followed by the cities of
Hyderabad and Kolkata that have median
experience level of professionals at 6.5
years and 6.4 years respectively.
8.0
7.4
8.0 7.1
6.8
6.5 6.4
0
1
2
3
4
5
6
7
8
9
City-wise Median Experience(inYears)
BengaluruDelhi (NCR) KolkataPune HyderabadChennaiMumbai

46
AIM Research
AIMResearch has researched the open
jobs across the Artificial Intelligence seg-
ment and has provided the findings on the
basis of the following:
• Salary-wise Distribution of Open Jobs
• Experience-wise Distribution of Open
Jobs
• City-wise Distribution of Open Jobs
Jobs Study
The salary-wise distribution of open jobs
reveals that the 6-10 Lakhs salary brack-
et, offered for jobs, has the maximum
proportion of open jobs at 27.9%. This
is followed by the salary level of 10-15
Lakhs offered for jobs at 21.2%.
This salary bracket is followed by the
mid-junior salary – 3-6 Lakhs at 20.6%.
This is followed by jobs advertised for the
15-25 Lakhs salary bracket at 17.2% and
the entry level of 0-3 Lakhs at 7.5%.
The jobs for upper level salaries (greater
than 25 Lakhs) have a combined propor-
tion of jobs of 5.6%.
Salary-wise Distribution of Open jobs
The salary wise distribution of open jobs reveals a flatter curve distribution as
compared with other Data Science open job salary distributions.
Moreover, the second-highest distribution
of jobs in the 10-15 Lakhs salary level
reveals the developed nature of job open-
ings or the roles advertised by companies.
Similarly, the proportion of jobs adver-
tised in 15-25 Lakhs at 17.2% also reveals
the established state of the AI function in
India.

47
Salary-wise Open Jobs Distribution
0
5%
10%
15%
20%
25%
30%
0-3
Lakhs
3-6
Lakhs
6-10
Lakhs
10-15
Lakhs
15-25
Lakhs
25-50
Lakhs
50-75
Lakhs
75-100
Lakhs
100+
Lakhs
7.5%
20.6%
27.9%
21.2%
17.2%
4.4%
0.8% 0.2% 0.2%

48
AIM Research
Experience-wise Distribution of Open jobs
The experience-wise distribution of open
jobs reveals that the greatest proportion
of jobs has been advertised for the experi-
ence level of 2-5 years at 22.3%.
This is followed by the proportion of
mid-senior level of jobs for the experi-
ence level of 7-10 years at 21.8%. The
middle level experience level of 5-7 years
has a distribution of 21% of the jobs.
The higher level of experience of jobs for
10–15 years has a significant proportion
of 16.2%
The entry and lower experience levels of
0-1 years and 1-2 years have a distribu-
tion of 5.7% and 7% respectively.
The lowest proportion of open jobs for the entry level, at 5.7%, signifies the move
towards hiring of experienced professionals for a developed AI function in India.
Moreover, the proportion of jobs
advertised for the experience level greater
than 15 years at 6.1% underscores the
move to leadership roles across the AI
across companies in India, instead of
roles focused on delivery or development.
This is accentuated by the combined
proportion of jobs at 22.3% for senior
and leadership positions, greater than 10
years.

49
Experience-wise Open jobs Distribution
0
5%
10%
15%
20%
25%
5.7%
7.0%
22.3%
21.0%
21.8%
16.2%
6.1%
Less than 1
Years
1-2
Years
2-5
Years
5-7
Years
7-10
Years
10-15
Years
More than 15+
Years

50
AIM Research
This is indicative of the growth of the AI domain in recent years, covering such
capabilities as Recommendation Engines,AI in the Cloud,AI in Digital, Computer
Vision, Robotics, and Natural Language Processing.
The equitable distribution of prospec-
tive hiring from the mid-junior to the
mid-senior experience levels indicates that
companies across industries are seeking to
develop AI capabilities across numerous
levels of expertise.
Moreover, the entry-level open job catego-
ries also afford opportunities to freshers
and junior level professionals, with 5.7%
of the jobs advertised for personnel with
less than 1 year of experience and 7% of
the jobs advertised for personnel with 1-2
years of experience.
In terms of Industry, while the highest pro-
portion of AI jobs advertised are in the IT
and ITES sector, the jobs advertised across
other industries and sectors indicates
the opportunity that job seekers have to
develop skills in these sectors and apply
for any suitable opportunity as and when
it arises.
Moreover, the opportunities across the
remaining breadth of sectors covering
BFSI, Pharma, eCommerce, and even the
Government sector indicates the potential
that AI offers in terms of industry-specif-
ic jobs across other sectors and not just
within the IT and Digital sectors.
Jigsaw Academy offers numerous pro-
grams for skill development in Artificial
Intelligence enabling professionals within
and even outside the Data Science domain
to upskill across AI technologies.
Opportunities for Skill Development in the AI Domain

51
% Distribution of jobs by sector / Industry

52
AIM Research
The city-wise distribution of open jobs in
AI has a typical plot.
Bengaluru, with a proportion of 28.6%,
has the highest proportion of open jobs
advertised. IT firms, Technology firms, and
Start-ups firms, to name a few, all have ex-
tensive operations across Bengaluru, and
hence the city has the highest proportion
of advertised jobs.
Similarly, Delhi (NCR), the hub of ITES
firms, has the 2nd highest proportion of
open jobs advertised at 21.9%.
Delhi is followed by the hub of Captive
Banking, Domestic BFSI, and Domestic
firms of Mumbai, that has a proportion of
11.5% of the open jobs.
Mumbai is followed by Hyderabad and
Pune that have respective proportions
of jobs at 11% and 10.6%. Chennai has
a proportion of open jobs at 7%. The
cities of Ahmedabad and Kolkata have an
open jobs distribution of 2.5% and 1.5%
respectively.
Other Tier 2 and Tier 3 cities have a
combined proportion of open jobs of
5.5%.
City-wise Distribution of Open Jobs

53
Bengaluru Delhi
(NCR)
Kolkata OthersAhmedabadPuneHyderabad ChennaiMumbai
0
5%
10%
15%
20%
25%
30%
28.6%
21.9%
11.5%
11.0% 10.6%
7.0%
2.5%
1.5%
5.5%
City-wise Distribution of Open Jobs

54
AIM Research
The recessionary environment, caused by
the unfortunate pandemic, has affected
the IT and Data Science sectors. The AI
domain or market in India has also been
adversely affected to a certain extent.
AIMResearch has studied the impact
of the slowdown across the Open Jobs
Advertised, Salaries of Professionals, and
Salaries Advertised for Open Jobs.
Covid Pandemic Effect:
AI Market Before and After
Open Jobs Salaries of Professionals Open Jobs Advertised Salaries
- 13.4%
- 16%
- 14%
- 12%
- 10%
- 8%
- 6%
- 4%
- 2%
- 0%
- 5.2% - 3.3%
AI Market - March to August Change / Contraction

55
The Open Jobs Advertised have contracted
13.4% from March 2020 to the current
period of August 2020. This contraction
may seem large but is not very significant
as this factor covers the open jobs adver-
tised or posted by companies on various
job sites.
Moreover, given the recessionary envi-
ronment across the globe, AIMResearch
expects a greater number of jobs to be
outsourced to India in the coming months
and quarters, offering AI professionals in
India a wider range of job opportunities
and career options.
While hiring has slowed down, it has not stopped altogether, and there are ample
opportunities across several sectors and sub-domains of the AI market in India.
Open Jobs Advertised
The Salaries of Professionals in the AI
market have contracted 5.2% from March
2020 to the current period of August
2020.
Here as well, the contraction is not very
significant when compared with the entire
IT and ITES sector, wherein the contrac-
tion in salaries has been a little over 10%.
Salaries of Professionals

56
AIM Research
The Salaries Advertised for the Open Job
positions have contracted 3.3% from
March 2020 to August 2020. The con-
traction in the salaries advertised for
open jobs is small, signifying the overall
strength of AI market across enterprises
and industries in India. companies
Overall, while the impact of the recession-
ary environment has been negative, the
AI market in India has been resilient. The
market is expected to grow at 6.6% in
2020-2021. This growth and the project-
ed growth and overall market figures till
2025 are covered in the next section.
Salaries Advertised for Open Jobs

57
The Artificial Intelligence market is cur-
rently valued at $6.4 Bn.
The market has been represented in 2 for-
mats – the first format excludes the con-
tribution of AI services to the AI domain,
and the second includes the contribution
of IT services to the AI domain.
Market Forecast
This demarcation has been done as the
AI industry is maturing at varying rates
across industries and segments. Nonethe-
less, the average pace of growth is very
high. Moreover, the pace of growth for
the period 2020-2021 will be slower than
the average pace of growth for the period
2021-2025.
This slower growth for upcoming year
is so because of the recessionary effects
caused by the unfortunate pandemic.
The pace of growth is higher across
the segments or sectors that exclude IT
services. The pace of growth of the AI do-
main for the IT services segment is slower,
and this reduces the overall growth rate of
the combined AI segments, which include
IT Services, Technology (Software &
Hardware), Captive, Engineering & Indus-
trials, eCommerce & Retails, and others.
As a result, the projections of the market
are as follows:
• In 2021, the entire AI market would
value at $6.8 Bn (at a combined 6.6%
growth rate). The market excluding IT
services will value $3.3 Bn (at a 9.5%
growth rate).
• From 2021 to 2025, the CAGR for
the entire AI market is expected at
13.8%, taking the valuation of the
entire AI market to $11.4 Bn by 2025.
Similarly, the market for the AI do-
main excluding IT services is expected
to have a considerably higher CAGR
of 19.5%, valuing the AI market (ex-
cluding IT) in 2025 at $6.8 Bn.
Hence, the current valuation of the AI market excluding the contribution of IT services
across AI is $3.0 Bn, and including the contribution of IT services across AI is $6.4 Bn.

58
AIM Research
2020 2021 2022 2024 20252023
3.0
6.4
3.3
6.8
4.0
7.7
4.7
8.8
5.7
10.0
6.8
11.4
Estimated Market Size (in $ Bn)
0
2
4
6
8
10
12
AI MArket Excluding IT Svcs Entire AI Market Including IT Svcs

59
The Artificial Intelligence market in India is expected to be the primary
growth driver of the Data Science domain and the broader IT industry over the next few
years.
While the unfortunate pandemic, and the resulting recessionary environment, has affect-
ed the overall growth of the Data Science market, the AI domain across industries and
enterprises in India continues to develop in terms of market size, capabilities, and skills.
The AI function in India has seen significant investments over the last few years, with
some of the largest firms across the sectors of Software & Hardware, IT services, Chip
and Semi-conductors, Engineering and Industrials, and Captive firms across BFSI and
Healthcare setting up Research & Development and AI Centers of Excellence. Moreover,
the Domestic firms, specifically in Banking, Energy, and Telecom are driving the growth
of AI for the domestic industry segments.
Moreover, given the advancement in next generation technologies across industries - with
5G in Telecom, IoT platforms in Engineering and Manufacturing, Connectivity across
the Automotive, Smart cities, and Smart utilities sectors - the scope of collaboration of
AI across sectors, even in India, is expected to increase. 5G is bringing Cloud Comput-
ing closer to the users and enterprises with the help of Edge Computing, which has been
collaboratively developed by leading Telecom and Technology firms, with partnerships
between Microsoft and AT&T, and AWS and Verizon. Similarly, in the segments of IoT,
Connected Automobiles, and Smart Cities, there is collaboration among the Telecom,
Semi-conductor, Engineering, and AI enterprises – this is transforming each of these sec-
tors and bringing real-time analysis and intelligent solutions to clients and customers.
As the research in this report has revealed, cross-industry and segment partnerships
are driving AI growth. Moreover, with extensive Planning at the Policy Level, which is
expected to drive AI contribution of AI in India’s GDP growth, the potential that India
offers to the global growth of AI is remarkable.
CONCLUSION

60
AIM Research
Till a few years ago, AI R&D centers across the Ecommerce and Retail, Semi-conduc-
tor / Chip / Sensor Devices, and Engineering Technology segments, to name a few, were
relatively small in terms of capability and overall contribution. Now, these 3 sectors /
segments are expected to drive the majority of the growth in the domestic AI market in
the coming years, with AI in Retail (including eCommerce) in India expected to grow in
value to $5.25 Bn within the next decade.
Investments in AI from international firms, such as Accenture, Microsoft, Amazon / AWS,
IBM, Ericsson, Intel, Qualcomm, Samsung, WPP, Bosch, Siemens, and GE Healthcare,
to name a few, and domestic firms, such as TCS, Infosys, HCL Tech, Wipro, Reliance
Group, Tata Group, Airtel, Larsen & Toubro, and ITC, to name a few, are driving the
growth in terms of capabilities, intellectual property, and revenue for the AI domain.
Moreover, the prestigious engineering institutes of IITs are developing AI for various
government services and serving as incubators for many AI start-ups.
By investing in AI technologies, platforms and services, NITI Aayog, Nasscom, Educa-
tional Institutions, the Indian IT firms, and various Technology & Engineering enterpris-
es are transforming India into a hub of AI research and development, and could possibly
take the market from $6.4 Bn in 2020 to more than the forecasted level of $11.4 Bn by
2025.

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