List of Contents
Context: The importance of AI economy to India
What is the significance of AI economy to India?
- Data and AI services are expected to help boost India’s economic growth in a big way. For example, according to NASSCOM, data and AI will contribute $450 billion-$500 billion to India’s GDP by 2025, which is around 10% of the government’s aspiration of a $5 trillion economy.
- With more opportunities created, there will be a net positive effect on employment generation. For example, it is estimated to create over 20 million technical roles.
- AI can create niche solutions to specific problems that banks and other service providers are deploying, such as speeding up loan application processing or improving customer service.
- it can provide solutions for better governance and social impact. For example, during the lockdown, the Telangana police used AI-enabled automated number plate recognition software to catch violations.
What are the prospects for India?
- India has a thriving AI start-up ecosystem with cutting-edge solutions being developed in areas such as cancer screening, smart farming and conversational AI for the use of enterprises.
- Our skilled human resource in AI/ML is fast growing, with over 5,00,000 people working on these technologies at present.
What are the steps taken to Promote use of AI in India?
- NITI Aayog’s national strategy for AI envisages ‘AI for all’ for inclusive growth, and identifies healthcare, agriculture, education, smart cities and infrastructure, and smart mobility and transportation as focus areas for AI-led solutions for social impact.
- The Telangana, Karnataka, Tamil Nadu and Maharashtra governments, among others, have announced policies and strategies for AI adoption.
- Technology companies have established AI centres of excellence to create solutions for global clients.
What needs to be done?
- Skill Development: In 2019, we nearly doubled our AI workforce to 72,000 from 40,000, however the demand continues to outpace the supply. That means our efforts to develop talent must pick up speed.
- Data usage policy: We need a robust legal framework that governs data and serves as the base for the ethical use of AI.
- Speed up Digitalization process: though the use of digital technologies has increased, the level of digitisation continues to be low. This poses a big challenge for organisations in finding the right amount of training data to run AI/ML algorithms, which in turn affects the accuracy of the results.
- Clean Data sets: Organisations need to invest in data management frameworks that will clean their data before they are analysed, thus vastly improving the outcomes of AI models.
The future for AI looks promising but to convert the potential into reality, India will need better strategies around talent development, stronger policies for data usage and governance, and more investments in creating a technology infrastructure that can truly leverage AI.