Header Banner Header Banner
Topics In Demand
Notification
New

No notification found.

Engineering Intelligence: The GenAI Inflection Point and India's Strategic Advantage

September 11, 2025 522 0 nasscom insights

Engineering Intelligence: The GenAI Inflection Point and India's Strategic Advantage

The Nasscom ISG Joint Report on GenAI in ER&D titled “Engineering Intelligence: The GenAI Inflection Point and India's Strategic Advantage”, identifies and prioritizes high-impact, high-feasibility Generative AI (GenAI) use cases that drive measurable outcomes across three critical engineering value streams: R&D process efficiency, manufacturing process optimization and product innovation. Focusing on seven strategic verticals, namely automotive, consumer electronics, semiconductors, telecom, industrials, healthcare and medical devices, and energy and utilities, the report curates global and India-origin examples of GenAI deployments that have delivered clear returns in speed, quality, cost and innovation throughput. The report provides actionable insights and case-led inspiration for engineering organizations seeking to embed GenAI at scale. Additionally, it aims to elevate India's position as a global hub for GenAI-powered engineering transformation, not only as a delivery center but as a lighthouse of innovation, cocreation and product leadership.

Key Highlights

  • GenAI's role in ER&D: A Strategic Inflection Point

GenAI is central to engineering transformation for driving:

    • Software modernization through automated code generation and testing – GenAI-enabled electronic control unit (ECU) code synthesis in automotive R&D has reduced development cycles by up to 50 percent.
    • Manufacturing optimization via predictive maintenance and defect detection – wafer yield prediction in semiconductors has improved accuracy by over 21 percent.
    • Product innovation through adaptive design, simulation and personalization – AI-personalization engines, feature evolution prediction and multimodal content creation are redefining device experiences in consumer electronics.

 

  • GenAI's Impact on ER&D: Current Adoption, Investment, and Insights
    • Just over 10 percent of enterprise applications are GenAI-enabled today, projected to reach 25 percent by the end of 2025.
    • GenAI's share of IT budgets is expected to grow from 4 percent in 2024 to over 6 percent in 2025. The average GenAI initiative investment is $2.6 million, rising to $4 million in full production.
    • The highest concentration of GenAI investments is in customer-facing roles (for example, chatbots and customer service).
    • Industries with less customer interaction and complex and regulated environments, such as healthcare, are exploring specialized applications of GenAI (for example, drug discovery and clinical trials).

 

  • India Strategic Advantage
    • A deep pool of AI-fluent engineers and sector experts enables rapid integration of GenAI into both product innovation and process efficiency.
    • Partnerships across startups, OEMs, Tier 1s, and service providers create an environment where experimentation quickly evolves into enterprise platforms.

 

Community by nasscom Insights is focused on building the largest online community catering to the Indian technology sector. The purpose of the community is to bring the latest trends and discussions onto a single platform. Our passion for tech drives the free-flowing exchange of ideas and visions from industry leaders and game-changers across India.



LATEST REPORTS

© Copyright nasscom. All Rights Reserved.