India is employing a strategic approach to boost its artificial intelligence (AI) industry with the government’s recent announcement of the establishment of three new centers of excellence (CoEs) for AI. These centers will focus on healthcare, where AI can be applied to improve patient diagnoses, provide personalized patient management, and automate administrative tasks.
Growing the Indian AI talent pool
India’s AI skills penetration factor is 3.09, as per NASSCOM data, and is reported to be the highest among all OECD and G20 countries. At this rate, India’s tech talent is three times more likely to have AI skills than other countries.
With a high AI skills penetration factor, India is becoming an early adopter of AI technologies. This could potentially lead to an increased rate of adoption of different AI solutions among end-users in the country.
Increase in Foreign Direct Investment (FDI)
India’s high AI skills penetration factor offers collaboration opportunities with other countries in the field of AI. International AI players may be interested in partnering with Indian companies to access this skilled talent pool and develop joint AI solutions.
India’s cost advantage, abundant availability of skilled talent, and evolving data protection regulations make it a desirable location for AI companies seeking to expand. The recently enacted Digital Personal Data Protection Act of 2022 aims to balance users’ right to protect their personal data with the need for lawful data processing, while also reducing the compliance burden for India’s growing data-centric start-up community and small businesses.
The future of AI in India
According to recent government data, India is currently home to around 1,900 start-ups that are focused on developing AI technology. Additionally, the Department for Promotion of Industry and Internal Trade has recognized more than 4,500 start-ups across 56 different sectors that are focused on innovation and developing technologies like AI, IoT, and robotics.
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It is clear that the Indian government has recognized the potential of AI and is making concerted efforts to encourage its growth within the country. With initiatives like ‘Make AI in India’ and ‘Make AI work for India’, the government is laying the groundwork for a future in which AI plays a key role in the country’s development. Moreover, the Indian government’s focus on AI is likely to spur even more innovation and investment in the sector. With the government’s support, Indian start-ups can expect to have access to resources and funding that will help them scale their operations and compete on a global level.