It also pointed out that 'business-as-usual growth' in AI investments is unlikely to increase current levels of AI intensity.
"In order to trigger a positive growth shock, AI intensities should be sharply increased," it said.
Investment of Rs 7,000 crore, approved by the Ministry of Finance towards AI program, could increase AI investments at rates higher than the business-as-usual-rates, it noted.
"This increase in investment will lead to an approximate 1.3 times increase in AI intensity, translating into spillover benefits of 3.2 per cent of GDP," the report said.
Niti Aayog CEO Amitabh Kant, while releasing the report, said India is in the midst of a once-in-a-generation disruption driven by AI.
has become a strategic lever for economic growth across nations and will continue to be one of the most crucial technologies of the future," he said.