A Move Towards Intelligent Economy: Indian Evidence

Abstract

The current study accounts for a transitional move initiated by NITI Aayog and Securities and Exchange Board of India (SEBI) recently in the form of adoption of artificial intelligence (AI) in Indian economy. Empirical analysis of data of top 500 Indian companies reveals that adoption of this transformation is likely to enhance firm performance. The annual reports of Indian companies mention the use of AI in the business, which clearly indicates that Indian economy has initiated a move towards intelligent economy. It is observed that the banking companies are using AI and chatbots at a wider scale. Firms belonging to other sectors are gradually following the adoption of AI in the business process which results in improved financial performance. The findings of the study suggest that Indian legislators should gradually move towards mandatory adoption of AI in business economy at large in line with the global trend, which began its footprints through Digital India.