AI-driven productivity could add up to $84 bn to India’s annual GDP: Cognizant study

Artificial intelligence-driven workforce productivity could add between $28 billion and $84 billion to India’s annual nominal gross domestic product (GDP) under realistic near-term adoption scenarios, according to a new study by Cognizant.

The research examines the potential economic contribution of AI-enabled productivity gains and highlights the role of enterprise adoption, workforce skilling and access to AI tools in translating these gains into measurable economic output.

The study also estimates a theoretical upper limit of $830 billion in additional annual GDP, assuming widespread AI adoption across the entire workforce and full conversion of productivity improvements into economic output.

Based on a survey of 700 enterprise employees and 75 C-suite executives and business leaders across 10 major industries, the findings indicate that employees are already reporting productivity improvements from AI. However, the extent to which organisations can convert these gains into business outcomes remains uncertain.

AI adoption drives workforce productivity gains

According to the survey, 97% of employees in India reported some level of productivity improvement through AI, with an average reported productivity increase of 15%.

The findings also point to higher levels of AI training among Indian employees. Around 74% of respondents in India said they had completed AI training, compared with 56% globally.

However, access to AI tools remains limited across organisations. Business leaders surveyed said that, on average, only 36% of their employees had access to AI tools, indicating a gap between workforce preparedness and enterprise-wide adoption.

Rajesh Varrier, president – Global Operations and chairman and managing director of Cognizant India, said wider access to AI tools, continued investment in workforce skilling and an enabling environment for responsible AI adoption would be necessary to realise the technology’s economic potential.

Productivity gains vary across industries

The study found differences in reported AI productivity improvements across sectors.

Healthcare recorded the highest share of employees reporting productivity gains above 20%, at 38%. Communications followed at 31%, while technology and banking each recorded 28%. Retail and consumer packaged goods (CPG) stood at 18%.

Manufacturing recorded the lowest proportion of employees reporting any level of productivity improvement, at 82%. However, 27% of respondents from the sector expected productivity gains above 20%, suggesting scope for further improvements as AI adoption expands.

Infrastructure supports adoption, but ROI remains a challenge

The research found that 79% of senior leaders surveyed believe their organisation’s technology infrastructure is accelerating AI deployment. Additionally, 68% view India’s national infrastructure as a factor supporting AI adoption.

Despite these developments, organisations continue to face challenges in translating productivity improvements into measurable financial returns.

While 35% of business leaders reported workforce productivity gains, 84% said AI had not yet reduced costs, while 91% reported no impact on revenue. The study also found that 37% of organisations had paused or discontinued AI initiatives because of unclear return on investment (ROI).

Wider access and skilling key to realising AI’s economic potential

The findings highlight the need for enterprises to expand employee access to AI tools, continue workforce training and extend AI adoption beyond routine tasks to more complex business activities.

The study also points to the importance of establishing clearer metrics to assess the impact of AI investments on operational efficiency, costs and revenue.

For India, the potential economic gains outlined in the research will depend on how effectively organisations move from individual productivity improvements to wider enterprise adoption and measurable business outcomes.