According to the Study of ICRIER, India can witness a sharp increase in its GDP if there’s even a unit increase in the AI intensity.
AI has significantly transformed the business landscape as we know today. Its implementation in every industry shows how far its application can streamline a business operation.
In a study conducted by Google, Nasscom and ICRIER, even a marginal increase in the AI intensity (measured by the ratio of AI to sales of the firm) by the country’s organizations, can propel its GDP by 2.5 %. Such an increase in the GDP can result in immense improvement in India’s overall infrastructure.
The positive implications of AI have already been leveraged by many nations across the globe and in India. Many of them are already using it to leverage their nation’s economic growth. Not only that, the economies seeing its immense benefits, are heavily investing their resources in the development of projects related to AI and ML.
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However, the rise of pandemic has drastically changed the country’s economic status. The integration of the technology in India’s various organizations is unlikely to take place anytime soon. To increase the AI growth, AI intensities need a sharp investment uptick.
Across India, business leaders are taking various initiatives to seek out projects which, even in the current economic climate, can allow them to invest in projects related to AI. Companies such as Staqu, Blue Sky Analytics, Intello Labs, Leverage Edu, Niramai are some of the startups that are leveraging AI and its various applications to scale their businesses and tap onto the markets which are lagging in its implementation.
These companies display a small piece of a pie of the companies that are currently investing in AI-enabled technologies.
To support the AI’s adoption across India, a few policies have been suggested that includes:
1) Founding a nodal agency for the AI’s development and diffusion
2) Developing frameworks for collaboration between governments, industry, and academia
3) Addressing the country’s skill gap in relation to AI
4) Developing a comprehensive data strategy for India and
5) Promoting AI’s development and safety standards
With such practices, India can accelerate its growth and can lay a strong foundation for AI. This can pay the way for many innovations that can transform the nation’s economic potential at its core.
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However, even though the technology exhibits a promising future, getting it in the wrong hands can produce dire consequences. If AI is integrated into the nationwide business model and only a group of individuals or organizations can decide what the technology holds and how it benefits them, then the technology only poses a threat to a country still fragile in its economical nature.
Many debates have occurred across the globe regarding the controlling nature of AI. Computer scientists as well as business leaders across India are still trying to figure out how to incorporate AI that would be unbiased and would not compromise the safety and security of the nation’s populous.
Regardless, AI is still the rapidly evolving field, and its synchronization with the emerging economy of India can enhance the functionality of the technology and, at the same time, boost its economic potential.
