High time for AI to transform Indian business ecosystem to navigate data
As the world moves towards digital transformation, a massive amount of data is being generated across all industries. Understanding how to navigate data to achieve quantifiable results at scale is vital for businesses of all sizes and this is where artificial intelligence comes in. In order to keep pace with stronger economies like the China and the United States, the rate of adoption of AI in the Indian industrial sector needs to be accelerated to gain significant market share and competitive advantage.
Given the government’s rallying cry for Digital India, enterprises – large and medium-sized enterprises and government agencies are emphasizing AI-based applications in various sectors. Major companies and academic institutions have started working to retrain and hone their talents, which will eventually help Indian industries compete with other global players in the long run. The adoption of AI for business enriches the workforce and helps the economy of the country to grow gradually, hence the need of the hour for Indian companies and SMEs to adopt the AI for faster decision-making and easier scaling.
The role of AI in the Indian economy
Being one of the largest economies in the world, India is aiming for a major shift in its pace and business model as implementation of AI in industrial sectors for increased development is imperative, while keeping focus on the Indian government’s goal of becoming a USD 5 billion savings in the near future.
With the patronage of the Indian government, the multidimensional adoption of AI in the Indian economy is growing. The Government of India’s Department of Trade and Industry formed an Artificial Intelligence Task Force in 2017. As a follow-up in February 2018, the Government of India’s policy think tank NITI Aayog took the role of leading a national program to emphasize the implementation of AI in research and development. All this can be linked to the ambitious project of the government of Atmanirbhar Bharat.
India’s AI use cases are growing significantly, with several global players trying to grab a major share of India’s growing AI market. AI in India is being implemented to improve the business metrics of different industries by helping them better understand consumer demands. The implementation of AI has proven to be effective in reducing wastage of resources and also ensuring quality.
According to a study by International Data Corporation (IDC), the Indian AI market is expected to reach $7.8 billion by 2025 growing at a CAGR of 20.2%. The study also claims that the AI software segment would dominate the market and grow from $2.8 billion in 2020 to grow at a CAGR of 18.1% by the end of 2025.
Why is an AI-centric mindset and culture necessary?
The main reason why Indian companies do not pay much attention to R&D is the cost of implementation, and of course the lack of an innovation ecosystem, inadequate government incentives, apprehension to With regard to the adoption of new technologies, job security issues are factors that restrict Indian businesses. to implement AI in their ecosystems. However, situations are changing rapidly and for good.
To become competitive and gain an edge over their global counterparts, Indian businesses need to ensure that they get the most out of AI adoption. Regardless of their size, Indian businesses need to understand that AI is for better decision-making and it will eventually help them improve their business.
Meshing business processes for a better implementation of AI
Companies need to integrate AI into their business and operational procedures accordingly. They need to show up and provide the right business goals and priorities to AI engines and solution providers to get the best decisions from data scientists. It is a tedious task for solution providers to gather the right data from their stakeholders. Therefore, companies that implement AI need to predict how effectively they can use AI to meet customer expectations.
Raising awareness, simple and transparent government regulations can help overcome these challenges. Building the right infrastructure, the right AI awareness will help stakeholders understand their blind spots and data gaps. Overcoming these challenges can ensure that the potential of AI can be utilized much faster and the results will certainly transform the face of the Indian economy.
AI is creating multi-dynamic opportunities in India’s business ecosystem
AI has created multi-dynamic opportunities in the Indian business ecosystem through its added value for businesses and ease of implementation process. The manufacturing sector is one of the major contributors to the country’s GDP with a 17.4% contribution to overall GDP in the last fiscal year. Even when India’s economy was struggling due to the global meltdown and the first wave of the COVID-19 pandemic, manufacturing was one of the areas that helped the country’s economy recover and to show significant growth. Many small and medium enterprises and SMEs have played a key role in the turnaround.
Interestingly, even after technological advancements, many SMEs face several operational challenges. In short, the woes of the Indian SME sector are deeply rooted with potential business challenges. With a lower rank in ease of doing business and the high cost of doing business in India, many SMEs face difficult situations when competing with their global counterparts. I strongly believe that AI can play a crucial role in helping Indian SMEs overcome operational challenges and grow tremendously with a higher success rate.
You wonder how? Take the example of the Indian automobile industry. It is one of the main business ecosystems and contributes a significant share to the country’s GDP. From supply chain to OEM manufacturing, from dealerships to after-sales service, it is a huge and very complex business ecosystem. Major auto parts manufacturers in India have implemented AI in different operations like supply chain management, shop floor activities, etc. to achieve faster success.
For OEMs as well, AI plays a vital role in reducing labor hours and reducing costs. For example, let’s walk through the hands-on scenario of the car design and development process. It takes a considerable amount of man-hours to develop a unique model that requires absolute precision, a multi-dimensional trial and error method in place before creating an actual prototype. Thus, car designers must understand crucial factors such as dimensions, aesthetics, automotive aerodynamics, engine, and fuel efficiency to achieve flawless results.
Therefore, designing a car by hand can take thousands of hours, discussions and modifications on the first attempt. As the next step towards advancement, OEMs and their suppliers are vigorously implementing AI and Deep Tech solutions to drastically reduce the time and cost of the development process. Although this is just one example, such an implementation of AI can be found in various other industrial sectors to bring efficiencies in time and cost management, error reduction, faster and smarter decision making, changing business metrics and increasing revenue.
Simply put, AI has become a game-changer for businesses of all sizes and across different industries in India to increase bottom line. AI not only reduces the cost of operations and brings operational efficiency, but it also closes potential gaps in workflow and helps companies increase productivity and profitability at a steady pace.
Manas Agrawal, co-founder and CEO of Affine
Share this article
Do the sharing