The Rise of Artificial Intelligence in India: Transforming Industries, Governance, and Society
As India commemorates its 78th Independence Day, the nation stands on the cusp of a technological revolution that promises to reshape industries, governance, and society. Experts believe that artificial intelligence (AI), once considered an emerging technology, has become a pivotal force driving innovation, enhancing efficiency, and fostering inclusivity across various sectors. As AI continues integrating into India’s development, its impact on business, governance, and public services becomes increasingly evident.
Mainstreaming AI in Business
AI is no longer futuristic but a present reality, especially in business. According to a March 2024 pulse poll by EY involving 250 technology leaders, 82% of respondents plan to increase their AI investments in the coming year. This overwhelming confidence underscores AI’s potential to drive business growth and innovation. Nearly two-thirds of these leaders have established internal development programs to help employees stay ahead of AI advancements, while 76% have implemented internal certification programs in generative AI.
AI is revolutionizing business operations by streamlining processes, enhancing decision-making, and delivering personalized customer experiences. From AI-powered recommendation engines in e-commerce to adaptive learning platforms in education, AI is woven into modern business practices. Zendesk’s “Future of AI-powered CX” report highlights AI’s emerging role in managing initial customer inquiries, ensuring consistency across service platforms, and monitoring the performance of both human and AI agents to enhance service quality. Notably, 92% of industry leaders in India believe AI agents will soon handle questions of any complexity.
AI’s Impact Across Key Sectors
AI’s influence spans various sectors, significantly impacting daily life and industries like e-commerce, education, and lifestyle. In e-commerce, AI-driven recommendation engines analyze customer behaviour to suggest products, driving sales and enhancing satisfaction. In education, AI-powered adaptive learning platforms are transforming how students learn and how educators teach by offering personalized content and automating administrative tasks.
Moreover, AI’s role in navigation, smart homes, and personal assistants like Siri and Alexa has made it integral to managing daily life. AI algorithms provide real-time traffic updates, optimize energy use, and simplify routine tasks, contributing to safer and more efficient living.
As Hemen Parekh, a 91-year-old AI expert, poignantly notes, “Now on this 77th anniversary of our Independence, the question that we should be asking is: ‘To enable a Viksit Bharat in which our millions of poor rise above the poverty level and enjoy a dignified life, what tool or weapon shall we use? To my mind, there is one tool, and that is AI—Artificial Intelligence.’
AI in Governance and Public Services
AI’s potential extends beyond commercial applications, offering transformative governance and public service possibilities. Mayank Baranwal, Senior Scientist of data & Decision Sciences at Tata Consultancy Services Research and Adjunct Assistant Professor at the Indian Institute of Technology, Bombay, captures this vision: “AI is more than just a tool; it’s a transformative force driving innovation, enhancing governance, and empowering citizens. In a diverse and complex nation like India, AI can bridge gaps, uplift communities, and lead us toward a more inclusive future.”
Baranwal emphasizes AI’s potential in healthcare and legal domains—areas significantly impacting citizens’ lives. AI can address access shortages in healthcare, especially among low-income groups, by providing personalized medical advice and predictive diagnostics. In the legal domain, AI can ease the burden of pending legal matters by automating routine processes and aiding decision-making, making the justice system more efficient and accessible.
A Vision for the Future
AI will play an increasingly integral role in the nation’s growth as India progresses. The positive sentiment towards AI in the EY survey, where 72% of respondents confirmed daily AI use in the workplace, indicates broad acceptance of this technology. However, challenges remain, such as hiring AI talent and establishing robust AI regulation.
According to an IBM report, 59% of Indian enterprises have actively deployed AI—the highest rate among surveyed countries. The report also highlights that 94% of businesses emphasize the importance of explaining AI decisions, indicating a strong focus on trust. Key factors driving AI adoption in India include the accessibility of AI tools, the need to reduce costs, automate processes, and the increasing integration of AI into off-the-shelf business applications.
The rise of AI in India is also evident in the SaaS sector. “The Rise of SaaS in India 2024” report surveyed around 100 SaaS startups with annual recurring revenue (ARR) between $3 million and $200 million. It projects that Indian SaaS centaurs and unicorns will generate $20 to $25 billion in revenue by 2030. This growth reflects the country’s burgeoning AI ecosystem, which is set to play a crucial role in global technology trends.
Despite AI’s rapid adoption, challenges remain. The Tenable study reveals that 73% of Indian organizations plan to use generative AI to enhance security measures and align IT objectives with business goals. However, only 8% of these organizations are confident implementing these AI solutions effectively. The Palo Alto Networks Survey further underscores India’s AI progress, noting that the country ranks second globally in AI adoption, with 58% of respondents utilizing AI for code optimization.
Conclusion
As India celebrates its 78th Independence Day, AI emerges as a beacon of hope and progress. If harnessed correctly, AI can lead to a more prosperous, inclusive, and equitable society. The journey ahead is one of continued innovation, where AI will undoubtedly play a central role in shaping the nation’s future. Furthermore, the experts believe that India’s embrace of AI symbolizes its commitment to progress, ensuring that as the country advances, it does so with all its citizens in tow, empowered by technology, and united in the vision of a brighter tomorrow.
Image source: Unsplash
