The financial press has reported that foreign institutional investors are transferring their money out of the Indian technology stock. The reasoning is based on the prediction that the Indian ITeS industry is going to lag behind the market because it is not adjusting to the new artificial intelligence tools.
The post-generative artificial intelligence regime is bringing about a rapid transformation of the technology sector. The ChatGPT4 and its offspring, ChatGPT4o, have the potential to completely transform the technology industry. Some believe that generative artificial intelligence solutions can easily handle the core responsibilities of a call center, which are the foundation of the Indian business process outsourcing industry.
For the Indian ITES industry, that is a massive stake. Approximately fifty lakh young people in India, if not more, find work in this industry. In addition, there exist individuals who are employed overseas on diverse projects. Any additional machine replacement of people in these fields could have a catastrophic effect on employment.
Additionally, the main pillar of India’s services sector is the country’s export of ITES. The advent of more advanced generative artificial intelligence products would pose a threat to India’s entire services growth model. The development of these artificial intelligence capabilities is a top priority for America’s five top technological companies.
It’s not like the top tech firms in India don’t know there are dangers to their survival. As of right now, they are lagging behind. However, if they recognize the difficulties ahead and take the necessary precautions in advance, things might work out in their favor later on. But they have to start right away.
To address the new circumstances, India should create a comprehensive two-pronged plan. Naturally, the first step would be to launch a massive push and crash program to advance Indian artificial intelligence capabilities. The enhanced generative AI products may as well have come from Indian companies. All we have to do is make a sincere effort to undergo such a change.
The patriotic lyrics of an old English song from the height of empire and colonialism were, “We don’t want to fight, but if we have to, we have the ships, the men, and the money too.”
The state of affairs right now is akin to a wartime emergency. China and the developed world are displaying a mad dash to improve their AI capacities. The big tech corporations have demonstrated that they are at the forefront thus far. After all, their companies, like OpenAI, are releasing the newest and greatest things.
Due to its significant investments in the field and recognition of AI’s significance for the future, China is another powerful participant. Their ability has mostly been built on the strength of their financial resources and data accessibility, which serves as the engine for the creation of these goods.
But if anyone is positioned to become a significant participant in the industry, it’s India, aside from the United States and China. We are fortunate to have three things going for us: first, we have the men who can develop the artificial intelligence sector; second, despite the fact that we have large IT companies, we do not have as much money going toward developing AI/ML; and third, we have the entrepreneurship to establish lean, agile technology start-ups.
After the United States, which has about 800,000 people with AI and machine learning expertise, India has over 500,000. China has the second largest reservoir of manpower, with 400,000 people. An encouraging indication is that India has the highest number of Linked In profiles adding AI/ML expertise. In other words, more people than ever before are claiming to be knowledgeable about AI and ML.
India is the seventh-largest private investor in AL/ML by value of money. Naturally, the United States is far ahead of the pack in 2023 as well as overall from 2013 to 2023. The United Kingdom, which does poorly overall economically, is the third-largest private investor in the artificial intelligence field, behind only by China.
There won’t be as many new businesses joining the market if you are not investing enough in it. In terms of recently founded private AI startups, India ranks eighth. Over 5,500 of them are new AI initiatives in America. We only have 338 against that. China leads the world with 1,446 of these new businesses.
The numbers make it evident what needs to be done. We must quickly step up our efforts to establish the AI/ML industry. In order to encourage private investment, the government may develop unique programs and provide low-cost venture funding, as China is now doing.
Nevertheless, based on the predictions of the market leader, India has a bright future in AI and ML.
India is the nation with the largest user base of AI technologies, according to remarks made by Sundar Pichai, CEO of Alphabet, the business that owns Google, during the annual conference of the firm.
He stated that the largest user base for many of Google’s AI products is found in India. He declared his intention to introduce the same AI tools that Google provides in developed countries. observing a lot of development work being done on Google’s current product line. ..India will be in a good position as the AI landscape changes.
Let’s get to work so that the foreign investors who are leaving the Indian IT sector will have plenty of opportunity to look back on their choices later on in peace.
