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About 50 per cent of the Indian Government and Public Services (GPS) organisations are ready to implement their first generative artificial intelligence (GenAI) solution within one year, a new report said on Monday.

With this implementation, various departments and functions of the government are expected to have a significant impact, ranging from data-driven decision-making, enhanced citizen engagement and access to services, to driving overall efficiencies across processes, according to EY India.

"The Indian government has identified AI as an important strategic technology and has also launched the National AI Strategy as well as other initiatives to promote AI adoption. GenAI enables smarter governance and fosters innovation in public service delivery," said Anurag Dua, Partner and Leader, Public Finance Management, EY India.

According to the report, GenAI holds significant promise for transforming the GPS sector by automating tasks, enhancing policy analysis, and promoting transparency.

About 61 per cent of the GPS organisations believe that GenAI will improve the citizen experience, while 67 per cent said that it will act as a catalyst to drive innovation.

The report further revealed that 30 per cent of the organisations believe that it will increase productivity while only 9 per cent mentioned that it will bring job displacement due to automation.

The major challenges that organisations are facing in adopting GenAI are data privacy (48 per cent), skill gap (36 per cent) and lack of unclear use cases (26 per cent), the report noted.