Rewire for growth

AI has the potential to add US$957 billion, or 15 percent of India’s current gross value in 2035. The combination of the technology, data and talent that make intelligent systems possible has reached critical mass, driving extraordinary growth in AI investment.

But is India fully prepared to seize the enormous opportunities that AI presents? Read on to find out.

Even with a tech-savvy talent pool, renowned universities, healthy levels of entrepreneurship and strong corporations, India lags on key indicators of AI development. The stakes are high. The country remains the most competitive in South Asia yet trails many other G20 countries in AI. That is despite Indian companies adopting AI technology at a larger scale, the country’s investments in tech infrastructure and the improving tech skills of its citizens.

• For big companies and industries, AI can boost growth and profitability and transform businesses. Take manufacturing. The sector could see a share-of-profit increase of 39 percent due to AI-powered systems whose ability to learn, adapt and evolve over time can eliminate faulty machines and idle equipment.
• For entrepreneurs and young companies, AI can serve as a tool to take on much larger incumbents.
• For society, AI can improve public safety and even save lives.

Our research shows that vibrant AI ecosystems are based on five pillars: universities, large companies, startups, policy makers and multi-stakeholder partnerships. The relative role of these five varies from market to market, partly depending on the maturity of specific industries and the political culture of each country.

To understand how to foster growth and innovation while safeguarding consumer rights and ethical considerations, India’s AI stakeholders should consider the following five recommendations:

• Forge a national AI plan and multi-stakeholder partnerships in key sectors
• Strengthen India’s AI research and development ecosystem, including through better international cooperation
• Create a workforce of the AI future, fostering inclusive workforce models
• Enable and broaden access to data
• Embrace smart regulation to safeguard responsible AI

At a time when India is striving to rekindle productivity and growth, AI promises to fill the gap. A full and responsible implementation of AI will open new economic opportunities that would not otherwise exist. The guiding principle should be to create “people first” policies and business strategies, centered on using AI to augment and extend people’s capabilities for the benefit of humankind.