The rising potential of AI/ML in India’s growth story

Amidst swift changes in the Indian economy due to a variety of global challenges, the Indian technology sector has seen extraordinary developments over the past few years. Running on the principle that ‘change is constant,’ this sector has seen unwavering advancements. And as a result, the prospects for a better life for people in India have been enhanced in countless ways.

It is astonishing to see how India has evolved since the first wave of technology decades ago. According to a report by NASSCOM, the Indian technology industry recorded a 15.5% growth to reach $227 Bn in revenue in 2022. With tech innovations taking place at an increasingly fast pace, this sector has considerably helped create new opportunities for millions to have impactful jobs, develop skills, and grow our economy in ways that will forever transform the country. 

As the tech sector continues to drive a positive impact on the Indian economy, there is a tremendous opportunity for Indian businesses to do more in terms of investment and innovation. This is especially true in the fields of Artificial Intelligence (AI) and Machine Learning (ML). AI and ML have gone beyond just being a buzzword in the technology sector to become crucial tools for businesses as they compete in an increasingly digital world. By augmenting human intelligence, AI and ML have changed the way businesses operate by increasing revenue, improving efficiency, and enhancing the user experience with their ability to automate tasks. 

According to a study published by The Brookings Institution, India is among the top 10 nations in the world in terms of technological advancements and funding in artificial intelligence. Today, India is achieving innumerable milestones with the help of AI. Not just large-scale businesses but also medium and small business leaders are deploying the best practices of AI to ensure growth and development into the mainstream market. And more can be done. 

AI and ML have become a necessity rather than an option not only in workplaces but at an individual level as well. Considering the large-scale deployment of these technologies in India’s digital transformation journey, the number of jobs created in India is remarkable. According to a report by Gartner, the year 2025 will see 2 million new jobs generated by AI and ML. 

A joint study conducted by Microsoft and the Internet and Mobile Association of India (IAMAI) revealed that India’s artificial intelligence (AI) market is expected to witness a growth of 20% over the next five years – the second fastest rate globally behind only China. This explosion in AI and ML innovation is a logical outcome for the increasing push for digital transformation initiatives, which accelerated in the global response to the COVID pandemic. As such, we expect to see AI and ML power the future digital marketplace. Its impact will be felt across sectors and industries, ranging from agriculture, medicine, autonomous mobility, manufacturing, robotics, finance, retail, and more. 

With the advent of digital technologies, many sectors across industries are already capitalizing on AI and ML technologies to increase production and overall profits. In agriculture, AI applications are being used in a variety of methods, such as modeling weather patterns and geospatial imaging to maximize crop yields. In medicine, AI is being used to revolutionize medical image analysis to catch life-threatening illnesses sooner and implement effective treatment plans. Pharmaceutical companies are using AI to accelerate the drug discovery process. These efforts will contribute to the health and quality of life of millions.

Similarly in the financial sector, AI and ML can be used to automate tasks, increase productivity and reduce costs. Through the use of these technologies, companies in the finance industry can automate fraud detection, credit risk analysis, and customer service. These technologies can also be used in predicting future trends in the markets which can be used for informed decision-making during investments. Additionally, branches of AI and ML, Computer Vision, and Natural Language Processing models can be used to extract information through unstructured data such as images, videos, and reports.

As we move towards a digital future, other sectors will also adopt AI and ML technologies to enhance businesses and propagate automation.

We are only seeing the beginning of the impact on Indian business and society. And the opportunity is great for India to emerge as a leading driver in AI and ML technologies. With the right vision and execution, Indian businesses can emerge as a driving innovators of AI and ML, giving us an opportunity to drive significant change in domestic and global industries.

Although the technology sector in India is seeing remarkable growth driven by AI and ML, it is necessary for companies in India to actively invest more in these technologies.  The increase in investment in AI and ML will help companies in strengthening their digital capabilities as well as in creating more job opportunities. From project management and development to data management and annotation, India has a strong talent pool to drive innovation. The same study conducted by Microsoft and the Internet and Mobile Association of India (IAMAI) revealed that India is among the top three talent markets, producing 16% of the world’s AI talent pool. It is irrefutable that investing in AI and ML innovation will better position Indian businesses to compete on a larger regional and global scale.

Although India has emerged as a key player in the technology sector, business leaders should not only invest in research and development but should also support educational endeavors to ensure our growing talent pool has the requisite skills to grow the industry. It is furthermore key for business leaders to invest in the development of talent and skills, especially amidst uncertainties, to be able to stand strong when others pull back to emerge as leaders in a competitive global marketplace. As we invest in growing our talent pool with a focus on fueling greater innovation in AI and ML, Indian businesses will reap tremendous benefits and gain the advantage in the global marketplace.


Views expressed above are the author’s own.