Gautam Billa, Vice President, International Sales Engineering, International, Ciena
Artificial intelligence (AI) is rapidly transforming various industries across the globe, and India is emerging as a significant player. While AI is already deeply integrated into the telecom sector, the potential for its broader adoption across India’s digital landscape presents exciting opportunities for innovation and growth.
A global study commissioned by Ciena highlighted the growing optimism among telecom and IT engineers regarding AI’s potential to drive network efficiency and innovation. According to the study, 60 per cent of telecom and IT engineers across the globe believe AI can improve network efficiency by 40 per cent or more. This confidence is echoed in India, where booming demand for high-speed internet and digital services is driving communication service providers (CSPs) to utilise AI.
India’s technological roadmap
India’s swift 5G roll-out, combined with the successful implementation of transformative systems such as Aadhaar and UPI, highlights the country’s remarkable ability to quickly adopt new technologies. These technologies have not only revolutionised how services are delivered, but also established India as a digital innovation leader.
A key factor driving this success is the nation’s tech-savvy mobile users, who consistently adapt to emerging technologies. This trend is evident in the rapid adoption of AI. According to a Deloitte report, India witnessed a 2.7 times growth in AI-driven initiatives between 2023 and 2024. To further accelerate this shift, over 650,000 Indian workers are set to undergo generative AI (GenAI) training, ensuring that the workforce is prepared for an AI-driven future. The same Deloitte report predicts that the Indian GenAI market is expected to grow at a CAGR of 24.4 per cent from 2023 to 2030, potentially adding $359-438 billion to the country’s GDP by 2029-2030.
Talent pool and cost efficiency
Strengthened by its vast talent pool India is known as a global hub for software development. According to the World Economic Forum, 34 per cent of students in India pick science, technology, engineering and mathematics to specialise in, producing around 1.4 billion graduates – the largest number in the world. This has created a deep reservoir of talent to fuel India’s tech revolution. However, India’s continued success in the AI space will depend on the country’s ability to attract, retain and nurture its talent.
Fostering innovation and start-up ecosystem
As one of the world’s fastest-growing economies, India can sustain its growth by nurturing innovation and creating a supportive environment for start-ups, particularly in the area of AI. A strong startup ecosystem is essential, as these companies will help drive creativity, agility and technological breakthroughs. Government initiatives such as Startup India play a vital role by offering incentives, easing regulatory barriers and facilitating access to funding.
Public-private partnerships can also accelerate growth by giving start-ups access to advanced research, infrastructure and mentorship. Additionally, expanding digital infrastructure, especially in the more populated cities, will empower India’s vast talent pool to contribute to AI’s growth. By encouraging AI adoption across key sectors and derisking investments in AI start-ups, India can attract more capital and strengthen its position as a key player in AI.
The next phase of AI adoption in India
With AI already at the core of network operations, the next phase for India’s telecom industry is to expand AI’s role across a wider range of applications. From optimising customer interactions to enabling predictive maintenance, AI has the potential to significantly improve CSPs’ business efficiencies. Indian CSPs are not just preparing for an increase in AI-driven traffic; they are also investing in advanced technologies that will support the country’s ambitious goal of making AI accessible. At the same time, many CSPs are still working to understand how AI investments can be monetised. According to the Ciena study, 68 per cent of survey respondents in India expressed high confidence in CSPs’ ability to monetise AI traffic.
Key sectors identified in the study as contributors to AI traffic include financial services, media and entertainment, and manufacturing. One promising avenue lies in third-party integration, where CSPs open their networks to external developers and businesses.
A collaborative path forward
India is the third largest consumer and producer of electricity worldwide, with an installed power capacity of 442.85 GW as of April 30, 2024. The anticipated rise in AI-driven data processing underscores the need for more energy-efficient reliable technologies. Hence, sources of sustainable green energy and developments in the power sector will go hand in hand with developments in the AI and technology sector.
To fully realise AI’s potential, close collaboration among industry players, government bodies and other stakeholders is essential.
As India continues to embrace AI, the synergy between AI, India’s talented human capital and the telecommunications sector will be pivotal in shaping the country’s digital future. Just as India has set a milestone with the fastest 5G roll-out in the world, it is now ready to face the AI revolution.
