India Leads the Way in AI Adoption
The country is rapidly becoming a trailblazer in adopting artificial intelligence. Statistics now reveal that 30% of Indian companies use this advanced technology to unlock maximum value. What's impressive about that figure, which was produced by research from the Boston Consulting Group, is that it actually surpasses the global average of 26%. This means India is adopting a more progressive approach to incorporating AI across industries.
A part of the report by BCG, 'Where's the Value in AI?', was based on responses from over 1,000 Chief Experience Officers and other senior executives across 20 different sectors worldwide, including Asia, Europe, and North America. In fact, very few would deny the role of such sectors as fintech, software development, or banking where application of AI leads to increasing operational efficiency.
This spurt into AI adoption doesn't reflect an evolution inside tech-centric industries alone. It is fascinating to see how old-fashioned sectors are coming on board and actually finding out the potential of AI, with the CEOs now looking for gigantic returns on their investment. In this direction as promising as it appears, the report speaks a lot about the challenges that most companies face: 26% have put in the capabilities to transition from experiments to effective value generation.
It is true that India's fast pace of embracing AI is redefining its competitive edge in the world.100% companies are at the experimentation stage with AI, which reflects India's preparedness to embrace this technology in the best possible manner. concludes Saibal Chakraborty, India Leader for BCG's Technology and Digital Advantage Practice. The insights by Chakraborty mirror both the current state and the future growth path in AI integration. He is of the opinion that while the Indian market will come at the forefront, it has the potential to generate measurable value from AI.
While this does give one a sense of immense commitment towards technology, the report does have some sobering statistics to divulge in terms of performance across the globe. In fact, the bottom line is that only 4% of all businesses could deliver sustainable value through AI. Slightly below 22% have strategies in place to leverage AI accordingly. Meaningfully, 74% of businesses have not seen tangible results. There is scope for improvement, not just for Indian businesses, but also for their global counterparts.
Despite these hurdles, growth in Indian interest in AI proffers bright prospects not only to the technology sector but also to the entire economy. BCG presented India's AI leaders' maturity as all-round and cutting across not only digital landscapes but traditional industries, with every variety of avenue open to advancement. According to Chakraborty, "India is poised not just to lead in AI adoption but to innovate beyond the conventional tech-driven business models".
This business sentiment is also supported by continued investments from all quarters, such as the academia and private sectors, which are pushing the boundaries of what can be achieved with AI. It's not uncommon to see companies invest resources, hire relevant talent, and test pilots towards exploiting the boundless potential of AI.
Add to this story industrial AI startup Avathon, headquartered in the United States but formerly known as SparkCognition, is working at not merely rebranding but doubling down on its commitment to India. The company, which already boasts significant backing from influential investors such as Temasek Holdings and Boeing, plans to triple its workforce in India from around 140 to 400 employees within the next two years. The company plans to make India its largest R&D hub, indicating its confidence in the skill pool and innovative capabilities.
Pervinder Johar, the CEO Avathon said, "India is at the heart of Avathon's roadmap, with AI projected to contribute over 50% of the Asia-Pacific region's growth in traditional industries by 2028." This mirrors the firm's strategic vision of improving efficiencies in operations and applying AI solutions to legacy systems going across aerospace, defence, and oil and gas.
We view India as being key to our expansion: both as engineering and research and development headquarters. Focus on India would seem, in the great scheme of things, consistent with trends in multinationals' appreciation of India's huge market size and the Indian workforce's savvy talent to further fuel growth and innovation.
However, Avathon is not alone in this aspect. Texas Instruments, too, has revealed new generations of microcontroller units that promise to come with integrated edge AI technology. These innovations are said to be addressed for real-time control applications in the automotive and industrial sectors at a higher safety level and efficiency.
Reflecting engineers' present needs, Senior Vice President at Texas Instruments, Amichai Ron, proceeded to say that the call from engineers was urgent for smarter, energy-efficient systems to make decisions quickly. He noticed the new series of MCUs would allow engineers to take on more complex challenges and have more reliable systems while running more sustainably.
India leadership in the adoption of AI appears not just in the numbers but also in vision and aspirations. With companies now 'seriously playing the AI card', enormous scope opens up for breakthrough innovations and economic growth. It also reflects a form in which Indian businesses are gradually looking at technology not as an efficiency tool but as an inherent part of the core business strategy of the future.
