Amitabh Kant, G20 Sherpa
The increasing adoption of artificial intelligence (AI) is redefining the very fabric of industries and societies worldwide. India has a competitive advantage in AI owing to skills, market and demand. Amitabh Kant, G20 Sherpa, shared his insights on “India AI: From Seed to Scale–Empowering India’s Start-up Ecosystem” at the Global India AI Summit. Edited excerpts…
We are truly in a unique moment with the ongoing AI revolution. Today, we stand on the cusp of a monumental shift similar to the industrial revolutions of the past–where steam once powered engines and electricity later lit up cities. Just as these technologies did centuries ago, AI is poised to ignite a new chapter of innovation and growth.
The Indian government has committed a substantial five-year budget of Rs 103.72 billion for the India AI mission. This visionary initiative is designed to fuel AI innovation through robust public-private partnerships. Of this funding, approximately Rs 20 billion is earmarked specifically for deep technology start-ups, significantly boosting research and development (R&D) within these crucial enterprises.
India proudly holds the position of having the second-highest number of GitHub AI projects globally, accounting for 19 per cent of worldwide AI projects. The country has also shown remarkable growth in AI skill penetration, leading the world in expanding the AI talent pool, with an increase of 263 per cent since 2016. In 2023 alone, the hiring of AI talent in the country increased by 16.8 per cent year on year, reflecting a significant and growing emphasis on AI capabilities within the workforce. According to NASSCOM, 70 per cent of Indian start-ups are prioritising AI, underscoring its critical role in the start-up ecosystem. The AI market in India is on an impressive trajectory, projected to reach close to 10 billion by 2025, growing at a CAGR of over 40 per cent from 2020 to 2025.
As we embrace the AI revolution, the question is not merely about participation but also about how we can lead in this area globally. Just as the first industrial revolution gave birth to industries with the introduction of the steam engine, AI has the potential to revolutionise multiple sectors. Establishing AI integration across sectors such as healthcare, logistics, agriculture and FMCG (fast-moving consumer goods) is akin to laying the foundational infrastructure of the steam-based power industry. For instance, in healthcare, AI can significantly enhance diagnostic accuracy and patient care efficiency, directly impacting patient outcomes and healthcare delivery. In logistics, AI applications can streamline supply chain operations, optimise routes and reduce operational costs, making the entire process more efficient. However, rather than adopting a generalised approach, the key lies in developing customised AI solutions tailored to meet the specific needs of each sector.
As for AI-driven data analytics, this transformative force is similar to the role of electricity during the second industrial revolution. Just as electricity expanded operational hours and revolutionised factory efficiency, AI introduces a new dimension of power. The power of insight can fundamentally transform business operations across industries. Today, enterprises have the capacity for enhanced decision-making. AI production processes can analyse data sets at unprecedented speeds, enabling swift information that facilitates business agility. They can provide predictive insights, operational efficiency, personalisation, scale and innovation acceleration.
I will also highlight the transformative impact of microchip R&D during the third industrial revolution, which marked the dawn of the digital age by dramatically enhancing processing capabilities through computers and other electronic devices. This is important because this seemingly modest component brought about profound efficiencies and functionalities, revolutionising an era of industries from telecommunications to the space industry. Similarly, our potential to become a global leader hinges on core AI R&D. India must aspire beyond merely serving as an application layer for global needs. Our ambition should be to offer comprehensive, end-to-end AI capabilities.
Consider this striking fact – India generates 20 per cent of the world’s data, yet hosts only 2 per cent of the world’s servers. Our current computing infrastructure represents less than 2 per cent of the global capacity, a critical bottleneck in our technological advancement.
The central government is set to procure and enhance the country’s computational capabilities significantly by procuring 10,000 graphics processing units within the next 18 months. This strategic investment will dramatically boost India’s processing power, aligning our resources with data generation capabilities.
In sum, a proactive approach is essential for shaping a future where AI is not only transformative but also trusted and ethical. Just as the advent of digital technology introduced critical challenges such as cybersecurity and data privacy, the AI revolution comes with its own set of challenges, including biases, data security and ethical use. By mastering these elements, strategic integration, AI-led data analytics, core R&D ethics and governance, we can charter a course that not only leads to technological excellence but also earns the trust and admiration of the global marketplace.
