Artificial Intelligence (AI) spending in India will grow to $880.5 million in 2023 at a CAGR of 30.8 percent, said a report.

Enterprises are relying on AI to maintain business continuity, transform how businesses operate, and gain competitive advantage, said an analysis by International Data Corporation (IDC).

India's AI spending will grow from $300.7 million in 2019 to $880.5 million in 2023 at a CAGR of 30.8 percent, said IDC's worldwide AI spending guide forecast.

"COVID-19 is pushing the boundaries of organizations' AI lens. Businesses are considering investments in intelligent solutions to tackle issues associated with business continuity, labor shortage, and workspace monitoring," said Rishu Sharma, Principal Analyst, Cloud and AI at IDC in India.

Organisations are now realizing that their business plans must be closely aligned with their AI strategies, he added.

The latest report provides comprehensive coverage of the market overview including AI spending, end-user adoption plans, the business value of AI investments, and COVID-19 impact. The report also provides insights on evolving end-user plans as they progress on their approach to adopt AI.

Enterprises rely on AI to maintain business continuity, transform how businesses operate and gain competitive advantage, said the report.

As per IDC's 2019 Cognitive AI Adoption Survey, almost 20 percent of enterprises are still devising AI strategies to explore new businesses and ventures.

As per IDC's 2020 COVID-19 Impact Survey, Wave 7, half of India enterprises plan to increase their AI spending in 2020.

Data trustworthiness and difficulty in selecting the right algorithm, are some of the top challenges that hold organizations back from implementing AI technology.

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