Adoption of AI is not just limited to businesses, but economies are also shifting their focus to building their own AI capabilities as a means of boosting growth. But India is not quite ready to capitalize on the huge opportunities that AI presents. Despite having a tech-savvy talent pool, prestigious universities, robust entrepreneurship and strong companies, the country is still lagging behind in key indicators of AI development and seems to have a lot of work to do .
But that doesn't mean India isn't doing anything to get started. Over the past few years, India has set up an AI panel and mandated NITI Aayog to develop a national AI strategy with a view to leveraging AI for inclusive growth. To summarize, AI has the potential to add $957 billion by 2035, or 15% of India's current total value. The combination of technology, data and talent that makes intelligent systems possible has reached critical levels to drive extraordinary growth AI investments.
According to Accenture, India's stakes in AI are high as it remains the most competitive in South Asia, but lags behind many other G20 countries in terms of AI capabilities. This is despite the fact that Indian companies are massively adopting AI technologies, investing in technology infrastructure and improving the technology skills of their citizens.
As of August 2020, the Indian AI market is valued at $6.4 billion, with nearly 91,000 AI people working in Indian companies. Microsoft has the largest AI operation across the software technology space in India. The domestic company looks at the Reliance Group as the largest market share contributor in this category, with AI operations in oil and gas, retail, Jio Infocomm and other segments. Other companies in this category include industry leaders like Airtel, ICICI Bank, HDFC Bank, Tata Motors, Tata Communications, Mahindra & Mahindra, Larsen & Toubro and Aditya Birla Group.
According to Hong Kong-based IDC New Horizon Interconnect, recommended policy measures to support wider adoption of AI in India include (1) identifying a nodal agency responsible for the development and dissemination of AI; (2) establishing a collaborative framework to facilitate collaboration between government, business and academia; (3) establishing a comprehensive data strategy for India; (4) addressing the skills gap in AI in India; (5 ) promote the development of AI security standards.
For a market where millions of people still remain without access to basic public ****services such as health, electricity, education, and sanitation, establishing India's leadership position on the global AI map may seem like a far-fetched dream. However, the time is ripe for India to take its place in the AI space and the necessary foundations have been laid.