How Bridging AI Talent Gap Can Aid In India's Race To Become A Global Leader

India is actively positioning itself as a Global hub for AI, there is a national strategy in place to promote AI as a key driver of innovation.

Over the next decade, the focus in India should be on building and refining AI solutions that are tailored to the specific needs of various industries.

Source : Congerdesign/Pixabay

By Mahankali Srinivas Rao

It wasn’t too long ago that AI was the stuff of sci-fi movies, where Skynet's intelligent army of robots took over the world, and futuristic crime-solving tech like in Minority Report seemed far removed from reality. But today, AI is no longer a distant fantasy — it's the unseen engine behind how we live, work, and even make decisions, quietly steering the helm of industries worldwide.

Globally, today India leads in AI adoption, with 59 per cent of enterprises actively deploying AI solutions. From banking and healthcare to automotive and legal tech, AI is reshaping how businesses operate and deliver value. Four key sectors are driving this momentum, Industrial and Automotive, Healthcare, Retail & Consumer packaged goods and BFSI. These sectors are expected to contribute over 60 per cent of the potential AI-driven value add to India's GDP by 2026. AI is not a mere buzzword- it’s a driver of software-centric innovation across various sectors.  

GenAI Breakout

The year 2024 has been a breakout year for Generative AI models, with its use nearly doubling in the last 6 months, about 75 per cent of global knowledge workers use it. The rapid integration of AI into daily work processes, today has made it a standard tool across Indian industries. From a business standpoint, about 79 per cent of leaders say while they find AI adoption crucial for staying competitive, they are still navigating how to best integrate it into their business models to drive their innovation and growth plans. The C-Suits struggle reflects a broader challenge of AI adoption.

India with its young workforce has shown exceptional response in the adoption of new technologies, about 93 per cent of students and 83 per cent of employees from India actively engage with GenAI, the highest among the Asia Pacific countries.

The country is actively positioning itself as a Global hub for AI, there is a national strategy in place to promote AI as a key driver of innovation. Initiatives like the National AI Portal and AI-focused programs aim to integrate AI across various sectors, including education, healthcare, and governance. AI is also being leveraged in governance, improving efficiency and service delivery in public administration. The police use it to help them assist in crime solving. In agriculture, AI is enhancing the efficacy of agri-inputs on farm produce. AI-powered systems are also being employed in wildlife conservation efforts, to monitor and protect endangered species by analysing data from camera traps, drones, and other sensors.

The Challenges Of Large-Scale AI Models In India

While AI is driving signification innovation, several of the AI models used today are large in scale and present unique challenges for countries like India. Developing Large GPT models that are now commercial requires massive computational resources, including CUPs and GPUs, which come with prohibitive costs. OpenAI is projecting USD 5 billion in losses and their earnings are projected between USD 3 billion to 4.5 billion this year. While tech giants may have invested billions of dollars in building such models, such levels of investment may not be easily replicable in India.

Global leaders like Microsoft and Salesforce are pivoting towards developing smaller, more efficient language models tailored to specific use cases. These smaller models are less resource-intensive and can be fine-tuned for particular tasks, which makes these AI models more feasible for broader adoption.
India too is better served by focusing on vertical solutions that cater to specific industries. Rather than trying to build the next ChatGPT, the emphasis should be on developing AI applications that address the particular needs of sectors like healthcare, fintech, legal tech and others. These industry-specific solutions can be more impactful and are more aligned with India’s current capabilities and market demands.  

The Road To Commercialisation & Monetisation

Despite its promising applications, the path to commercialisation and monetisation when it comes to AI is still in its early stages. Sure, there is signification interest in AI, with large companies exploring various use cases, but how to commercialise and monetise these innovations, is yet to be seen. Early adopters of AI technology are still experimenting with different models, but a clear and convincing approach is yet to emerge.

As more companies invest in AI and as the technology matures, one can expect viable use cases to start surfacing. Already about 74 per cent of enterprises using GenAI have reported seeing a return on investment (ROI) within the first year of deployment. Among these, 86 per cent noted that AI contributed to a 6 per cent or more increase in their annual revenue. This demonstrates that while the early stages of AI adoption may be experimental, those who strategically integrate AI into their core operations are beginning to see substantial financial benefits.

Organisations that align their AI initiatives with business outcomes and have robust C-level bench strength are more likely to achieve faster and more significant ROI. These companies are not only realising financial gains but are also using AI to drive business growth, improve productivity, and enhance user experiences. As these success stories emerge, it's likely that by the end of the year, we will have a clearer picture of which AI applications are gaining traction and proving their worth in the marketplace.

The Future Of AI-Driven Innovation In India

Over the next decade, the focus in India should be on building and refining AI solutions that are tailored to the specific needs of various industries. Startups play a crucial role in this landscape, as they are often at the forefront of AI innovation.  AI is transforming even how startups operate, by driving efficiency, automating routine tasks, and enabling them to focus on strategic initiatives. This mirrors the broader trend in India, where AI is leveraged to create value and foster innovation.

India should concentrate on vertical stack solutions, that can drive software-centric innovation which delivers real value. While the hype around AI may continue for some time, the true measure of success will be in the practical, scalable applications that emerge. AI is an exciting frontier all set to reshape the very fabric of how software-driven innovation occurs in India.

(The author is the CEO at T-Hub)

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