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Indian Firms Bracing for Future GenAI Investment: NTT DATA Report

By: Bhaswati Guha Majumder

by Bhaswati Guha Majumder
November 15, 2024
in Exclusive
Reading Time: 4 mins read
Gen AI for governance

Gen AI in Governance (Representational picture)

Summarize with:

India’s rapid embrace of Generative AI is being bolstered by a thriving ecosystem of 30+ startups. Bhaswati Guha Majumder of CXO News and APAC News Network analyses the insights of India’s GenAI roadmap.

In a striking indication of India’s commitment to Generative AI (GenAI), every organization surveyed in the country plans to enhance their investments in this transformative technology, according to NTT DATA’s latest research, Global GenAI Report. The study highlights the growing maturity of GenAI adoption, shifting from exploratory phases to a focus on sustained performance gains.

The report, which surveyed over 2,300 IT and business leaders across 34 countries, underscores India’s pivotal role in shaping the global GenAI landscape. Indian enterprises have emerged as leaders in leveraging this technology for long-term business transformation, reflecting a significant departure from the global trend of experimental deployments.

Embracing Artificial Intelligence

Indian organizations are harnessing GenAI to drive efficiency, innovation, and competitive advantage across industries. The report finds that businesses in India are prioritizing GenAI integration into their core operations, with the technology being deployed across diverse sectors such as healthcare, banking, and manufacturing.

One of the standout findings is the universal intent among Indian companies to further invest in GenAI initiatives. This places India at the forefront of global GenAI adoption, signalling its readiness to capitalize on AI-driven opportunities for scalability and resilience.

India’s rapid embrace of Generative AI has been bolstered by a thriving ecosystem of startups, many of which are focused on developing native language models and applications. There are at least 30 companies in India which have been listed as GenAI startups. This surge in innovation has not only attracted substantial funding but also positioned India as a leader in creating AI solutions tailored to its unique linguistic and cultural diversity.

For example, Krutrim and SarvamAI are one of those names which are building large language models specifically designed for Indian languages. By catering to over 22 officially recognized languages and countless regional dialects, these companies are addressing the country’s vast and diverse linguistic landscape. Their work is vital in ensuring that AI technology becomes accessible to all sections of the population, breaking down language barriers and enabling broader digital inclusion.

The applications of GenAI in India are equally diverse, with startups deploying these technologies across sectors such as healthcare, education, customer service, finance, and content creation. For instance, Delhi’s All-India Institute of Medical Sciences (AIIMS) is the only public healthcare institution that has been exploring AI-driven solutions in the healthcare system. This versatility underlines the transformative potential of GenAI in addressing India’s socio-economic challenges apart from assisting India’s enterprise section.

It should be also noted that the central government initiatives have played a significant role in fostering this growth. Recognizing the economic potential of AI, the government has rolled out policies aimed at promoting AI development and adoption. The Cabinet’s approval of over Rs 10,300 crore for the IndiaAI Mission demonstrates the government’s commitment to creating a comprehensive ecosystem that promotes AI innovation by democratizing computing access, improving data quality, developing indigenous AI capabilities, attracting top AI talent, enabling industry collaboration, providing startup risk capital, ensuring socially impactful AI projects, and promoting ethical AI.

GenAI & Indian Companies

Globally, the NTT DATA’s latest report outlines a shift in GenAI applications, as organizations are moving beyond pilot projects to more sophisticated, enterprise-wide implementations. In India, this transition appears to be particularly pronounced. Local businesses are leveraging GenAI to automate routine tasks, enhancing customer experiences, and driving data-driven decision-making.

Indian IT leaders are also exploring innovative uses of GenAI in workforce transformation, using the technology to upskill employees and optimize talent management. This aligns with the global insight that GenAI is not merely a technological tool but a strategic enabler for organizational growth.

Furthermore, India’s robust IT ecosystem, supported by a tech-savvy workforce and government initiatives, provides a conducive environment for GenAI innovation. This positions the country to play a critical role in driving global GenAI advancements.

The report also specified that in India, GenAI is primarily used for risk assessment, fraud detection, quality control, personalized service recommendations and knowledge management Process automation. While 95% of Indian respondents have a defined GenAI strategy, 37% haven’t aligned it with their broader business plans, limiting its effectiveness.

Additionally, while legacy infrastructure (87%) and concerns over security, skills, and user resistance are major challenges for adoption, 81% of Indian leaders stress the need for responsible innovation.

However, despite the optimism, the report also sheds light on challenges, particularly in areas like data privacy, regulatory compliance, and the ethical use of AI. But 79% of Indian leaders have expressed excitement about GenAI’s potential, underscoring its importance for future growth.

Glimpse into the Future

As organizations globally aim to master their GenAI destiny by 2025, Indian enterprises are leading by example. The universal commitment to GenAI investment highlights a broader narrative of technological ambition and strategic foresight.

The insights from the report emphasize that India is not just a participant in the global AI revolution but a frontrunner poised to define the contours of GenAI’s transformative potential.

Also Read: Over 60% Indian Organizations Vulnerable to AI-Driven Ransomware Attack: Sophos

Summarize with:
Tags: AI adoptionAI and Machine LearningAI investmentArtificial IntelligencBusinessCentral GovernmentCompanyDeep learningGenAI adoptionGenerative AIGlobal GenAI ReportIndiaIndiaAI MissionIndian AIIndian enterprisesIndian GovernmentIndian techNTT DATAStartupstechnology
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