Accelerating India’s future through AI revolution

In a world where technological progress leads the way for innovation and groundbreaking developments, the pivotal query lingers: Is India genuinely poised to unleash the transformative potential of artificial intelligence (AI)? We are witnessing a complete transformation of businesses through data-driven decision-making, intelligent automation, and AI-driven insights. AI stands at the forefront of a revolution and what matters is how we approach, comprehend, and solve complex problems, spanning from healthcare and education to commerce and developing public policy.

AI fueling the Indian Economy

The GenAI market is expected to boost India’s economy exponentially in the next few years. According to a recent report by Ernst & Young, GenAI could boost India's economy by $1.2-1.5 trillion in the next seven years. This growth amid the bustling tech landscape is an opportunity for India to position itself as the global leader in generative AI innovation, owing to its robust local AI ecosystem. 

Although AI is in its early stages, there is a tremendous sense of optimism, and there are a lot of opportunities including talent, innovation and government initiatives, that will allow India to stay competitive in this evolving landscape.

Talent opportunity 

With a rich tapestry of talent, government support, and pioneering startups, the country is on its path to carve a niche in AI. Leading this transformation is India's large pool of engineers, data scientists, and visionary entrepreneurs, who are making significant strides in the field of AI. These trailblazers have not only recognized the potential of AI but have also fostered an innovative culture that attracts the interest of both national and international investors. 

As per the Salesforce 2023 Asia Pacific AI Readiness Index, India ranks 4th in this spectrum of Business AI readiness, which assesses the degree to which private-sector organisations are financially, organisationally, and culturally capable of adapting to the rapidly changing market dynamics.

Application of AI

Today, AI solutions are gaining popularity in every industry including healthcare, education, finance, etc. AI-driven chatbots for improved customer service and personalised learning resources for educators are just a few examples of how Indian startups are leading the way. For instance, in 2019, a group of innovative AI enthusiasts established Bharat Gyan, one of the fastest-growing AI content generator tools. It has emerged as a trailblazer in the field of AI, revolutionising education by developing AI-driven solutions for knowledge enhancement. Their dedication to enhancing the learning experience has earned them a reputable position in the AI-startup landscape.

While India's AI-startups are on an upward trajectory, they are not without their fair share of challenges. Ethical concerns also loom large, as the responsible development and deployment of AI technologies are critical. Furthermore, they face fierce competition on a global scale, putting their innovative capabilities to the test. However, amid these challenges, the opportunities for growth and impact are boundless. The vast potential of AI in addressing real-world problems, improving efficiency, and enhancing customer experiences presents an open field for these startups to make a significant difference. 

Accelerating innovation among startups 

The country’s technological future is being significantly shaped by the growing digital infrastructure and the Indian government's dedication to fostering the AI ecosystem. The union government has recently announced plans for an ambitious Artificial Intelligence (AI) computing mission with a budget of ₹10,000 crore. 

The 2023 Asia Pacific AI Readiness Index also highlights that India leads in terms of the number of AI start-ups, scoring ahead of other Asian economies. Additionally, total investments in AI start-ups in India stood at $3.24 billion in 2022, with funding devoted to AI start-ups totalling $7.73 billion between 2013 and 2022. The report further predicts that business AI readiness is poised to accelerate, as micro, small, and medium enterprises (MSMEs) start to invest in and adopt AI technology. 

Collaboration is the way forward

This proves that businesses and governments must pursue a comprehensive strategy, to accelerate AI readiness. First, the formulation and implementation of national AI strategies are crucial to provide a clear vision and direction for AI development. Second, adopting a risk-based approach to AI regulation and ensuring harmonisation with existing rules can strike a balance between innovation and safety. Third, prioritising responsible AI and ethics is essential to navigating the ethical implications of AI technologies. Fourth, efforts to bolster AI talent through education and training programs are vital for building a skilled workforce. Lastly, harnessing AI for both societal and economic benefit, coupled with effective education campaigns, can maximise the potential of AI to drive positive change across various sectors. India’s approach to regulating artificial intelligence has been commendable and could potentially set guide-rails for the global AI industry. The current approach to regulation leaves sufficient room for innovation empowering the industry to flourish. With the profound potential of generative AI and India's commitment towards AI-driven innovation, we have a unique opportunity to become the global leader in AI.

Sassoon Grigorian

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Sassoon Grigorian — Vice President, Asia Pacific Government Affairs at Salesforce