Growth of AI in India & Its Future

Here is some interesting data - by the end of this decade, more Indians will use artificial intelligence (AI) every day than in any other country in the world. However, it is just data/prediction. Will India become an AI nation in the coming years? In this article, we look at all the details related to India and AI.

Understanding the Demand and Supply of AI in India

Let us start by understanding the demand and supply of AI in India. India is rapidly emerging as a significant player in the global AI landscape. The country's growing economy, talent pool, and favorable government policies are driving the demand for and supply of AI solutions. The demand for AI is being driven by a variety of factors:

Economic Growth: The current decade belongs to India. India's rapidly growing economy creates new opportunities for AI applications across various sectors, such as healthcare, agriculture, education, and manufacturing.
Digital Transformation: Businesses in India are increasingly adopting digital technologies, and AI is seen as a key enabler of this transformation. Zomato and Swiggy have scaled on the back of digital transformation.
Government Initiatives: The Indian government has launched several initiatives to promote AI adoption, such as the National Artificial Intelligence Mission (NAIM).
Social Impact: AI has the potential to address significant social challenges, such as poverty, healthcare, and education.

The supply of AI in India is increasing, driven by:

Talent Pool: India has a large and skilled pool of IT professionals, many of whom have expertise in AI and machine learning.
Start-ups: A growing number of AI start-ups are emerging in India, developing innovative AI solutions.
Academic Institutions: Indian universities and research institutions are investing in AI research and education.
Global Partnerships: Indian companies are collaborating with international AI players to develop and deploy AI solutions.

Opportunity for India to become an AI nation

The concept of "China Plus One" has gained momentum, urging global companies to diversify their manufacturing and software supply chains beyond China. With its growing infrastructure, favorable policies, and young workforce, India is the most likely beneficiary of this shift. It is the only nation poised to rival China's scale.

India, with its 1.4 billion people, is more like a continent than a country. Its population, almost twice that of Europe, is predominantly young (average age 28). This demographic dividend, coupled with favorable global trends and the unlocking of decades of suppressed potential, presents an opportunity for India to scale its economic growth.

While India has the capacity to solve many problems, distribution has often been a challenge. AI offers a potential solution by enabling people to access services directly through natural language interfaces. As William Gibson famously said, "The future is already here - it is just not evenly distributed." This is particularly evident in India.

The rest of the world watches AI with curiosity, seeking real-world applications. India, however, is already seeing its potential. While other developing economies may also have AI opportunities, India's unique combination of factors sets it apart.

Sector-wise Usage of AI in India

Here are different sectors and how AI presents opportunities for growth for these sectors:

Agriculture: AI can help Indian farmers improve their crops by using smart farming techniques. US agriculture technology companies can work with Indian tech firms to bring these solutions to more farmers.

Finance: AI can help banks and financial institutions detect fraud, assess risks, and provide better customer service. US fintech companies can partner with Indian financial institutions to offer these AI solutions.

Healthcare: AI can help doctors diagnose diseases earlier, create personalized treatment plans, and discover new medicines. Indian IT associations are promoting AI in healthcare, opening doors for collaboration between US and Indian companies.

Retail: AI can personalize shopping experiences for customers in India.

Manufacturing: AI can help Indian factories predict when equipment will break down and improve quality control.

What can be done to boost AI's acceptance in India?

To boost AI's acceptance in India, here are a few strategies that can be implemented:

Education and Awareness: AI can be incorporated into educational curricula at various levels, from primary to higher education. Also, workshops, training programs, and boot camps can be organized to enhance AI skills among professionals.

Infrastructure Development: Both government and private companies should invest in building and upgrading data centers to support AI research and development. Also, they can promote cloud computing services to provide scalable and cost-effective AI infrastructure.

Ethical Guidelines: The country needs to establish clear ethical guidelines and regulations for AI development and deployment to address concerns about bias, privacy, and job displacement.

Government Support: One of the most important things would be government support - the government should implement policies that encourage AI innovation and investment. It should provide financial support for AI research and development projects.

Public-Private Partnerships: Encourage partnerships between government, academia, and industry to accelerate AI development and deployment.

Startups that encourage AI in India

Here are some startups that encourage AI in India:

Arya.ai
Haptik
Yellow.ai
Qure.ai
Blend AI
Athina AI
Sarvam AI
Niki.ai
Krutrim AI
DhiWise
Elastic Run

Challenges for India to be an AI nation

While India has made significant strides in the AI landscape, its success is far from guaranteed. Below are some of the key challenges that remain to be addressed:

Government's Track Record: The government's 10,000-chip plan, while ambitious, faces skepticism due to its past performance in utilizing research and development resources effectively. Many question the government's ability to identify and support promising AI projects.

Small Models for Big Problems: The effectiveness of using small AI models to solve complex problems remains unproven. While these models may be more efficient, their ability to handle large-scale tasks needs further testing.

Talent Shortage: India faces a severe shortage of top-tier AI researchers. As per data we found, 8% of the world’s top AI researchers are from India. However, the proportion of them that actually work in India rounds to zero.

Infrastructure and Resources: While India has made progress in building AI infrastructure and resources, it still faces challenges in terms of data availability, computing power, and research funding.

What's the future of AI in India?

According to a recent Accenture study, AI can add US$957 billion (15% of current gross value added) to India’s economy by 2035. It is no surprise that the government has introduced bold, multi-pronged initiatives to augment labor productivity and innovation with an eye to driving growth.

India's AI future is more than just an economic story. It is a transformative journey that has the potential to redefine entire industries, reshape governance, and significantly impact daily life.

Key Areas of Transformation Are:

Industries: AI is poised to revolutionize various sectors in India, including healthcare, agriculture, education, finance, and manufacturing. For example, AI-powered diagnostic tools can improve healthcare outcomes, while AI-driven precision agriculture can increase crop yields and reduce waste.
Governance: AI can enhance governance by streamlining processes, improving decision-making, and increasing transparency. For instance, AI-powered chatbots can provide citizens with quick and accurate information about government services.
Daily Life: AI is already making a difference in people's daily lives, from personalized recommendations on e-commerce platforms to smart home devices. In the future, AI could further enhance convenience, efficiency, and quality of life.

Conclusion

India's rising technological prowess, coupled with its distinctive social and economic context, positions it to become the world's largest user of AI by the end of this decade. AI has the potential to significantly impact Indian society, from streamlining education to enhancing social safety nets.