NEW DELHI: India is fast growing as a strategic leader with exciting innovations in the fields of cloud computing, quantum computing, and AI supercomputing, says a new report. This is not surprising because over 90% of Indian businesses are already utilising AI/GenAI technologies. However, the challenge lies in the level of implementation as only 2% of the companies are extensively integrating these technologies, says the report titled Deloitte Technology Trends 2024: India Perspective. GenAI does have the potential to accelerate India’s digital transformation with businesses coming forward to strategically invest in the new-age tech to maximise benefits by adapting to evolving market dynamics. If year 2023 witnessed significant demand for, and interest in, GenAI, the current year is expected to focus on identifying optimal investment areas and evaluating past investments.
AI: From Chatbots to Co-pilots
Since 2022, the perception of AI has shifted. It is no longer seen solely as a threat to jobs but rather as a vital tool for organisational competitiveness. AI’s role has transcended basic chatbots to encompass complex responsibilities as a co-pilot and autopilot in intelligent automation and decision-making. According to the Deloitte report, organisations across various sectors including healthcare, retail, education, and agriculture are increasingly adopting GenAI to streamline operations, enhance customer experiences and gain a competitive edge.
Notably, India has developed its own GenAI tool based on GPT-4, capable of answering questions related to the Bhagavad Gita.
Spearheaded by the Ministry of Electronics and Information Technology (MeitY), this initiative aims to reduce reliance on foreign AI models and foster indigenous capabilities in AI research and development. By fostering collaboration between academia, industries, and government, India aspires to build a robust AI ecosystem and establish itself as a global leader in AI innovation.
Managing risks
Despite its potential, GenAI poses inherent risks such as misinformation and synthetic media. Enterprises must proactively manage these risks by developing and integrating risk mitigation and governance processes to avoid reputational or financial damage. GenAI offers unique opportunities for businesses to modernise and optimise their infrastructure without extensive transformations. Its applications span across various sectors in India, with a thriving startup scene fuelled by substantial funding, indicative of high growth potential. Notably, 2023-2024 witnessed a significant rise in AI-related initiatives, accompanied by comprehensive workforce training programs.
India’s talent advantage
The Deloitte report also notes that India possesses a significant advantage with its large pool of young and skilled tech talent. By 2027, the country is estimated to have 18 million STEM graduates.
Additionally, a strong IT and engineering workforce of 2 million professionals across India’s top 15 tier-2 cities further underscores the nation’s tech-driven transformation. Attracting and retaining top talent will be crucial for India’s continued success in the dynamic global tech ecosystem.
The report estimates that the Indian technology industry’s revenue (including hardware) will reach $254 billion in FY2024, reflecting a 3.8% year-on-year growth. Exports are expected to touch the $200 billion mark, with a 3.3% annual increase, while the domestic technology sector is projected to cross the $54 billion mark, growing at 5.9% year-on-year.