India is the next frontier for AI Development and Adoption

India is rapidly emerging as a global powerhouse in artificial intelligence (AI). Image : Impact Newswire In the rapidly evolving landscape of artificial intelligence, Open AI CEO Sam Altman highlighted the growing importance of the Indian market. “India is our second-largest market in the world after the US, and it may well become our largest,” he said. “What users are doing with AI in India is quite remarkable.” Altman added that OpenAI is working with local partners to improve affordability and accessibility of AI in India. He also confirmed plans to visit the country in September. This remarkable growth is fueled by a robust digital transformation across industries such as healthcare, banking, manufacturing, agriculture, and retail, powered by AI technologies like machine learning, natural language processing, and computer vision. The country accounts for 16% of the global AI talent pool, second only to the United States, as per Boston Consulting Group. India's artificial intelligence market is set to triple to $17 billion by 2027, emerging as one of the fastest-growing AI economies globally, according to data by BCG. Government initiatives have been pivotal. India’s National AI Mission, Digital India program, and investments in AI infrastructure—including nearly 19,000 GPUs to support AI workloads—are establishing a strong foundation. Prime Minister Narendra Modi heralded this momentum, stating at the 2025 AI Action Summit, “India has successfully built a digital public infrastructure for over 1.4 billion people at a very low cost. This vision is the foundation of India’s National AI Mission”. Platforms like Aadhaar and UPI exemplify how public digital infrastructure accelerates AI adoption, democratizing access to services nationwide. India leads the world in AI adoption, with 30% of Indian companies using AI compared to a 26% global average, according to Boston Consulting Group. More than 70% of these firms have graduated from pilot AI projects to full-scale deployments, integrating AI for enhanced decision-making and efficiency. Sectors such as financial services leverage AI for automated loan processing and fraud detection, while healthcare uses AI-powered diagnostics and chatbots in multiple Indian languages. Homegrown startups are crucial in shaping AI innovations tailored to India’s diverse needs—addressing language barriers, healthcare accessibility, and agriculture. The ecosystem hosts over 1,500 AI startups as of 2024, supported by increasing venture capital inflows. Ajay Prakash, CEO of a leading AI startup, remarked, “India’s unique linguistic diversity challenges have inspired our innovations, enabling AI to reach communities previously underserved by technology.” Economic prospects are substantial. Government and industry experts estimate AI could add between $450 billion and $500 billion to India’s GDP by 2025. The private sector expects AI to increase India’s economic growth rate by over 1.3% annually through 2035, while creating millions of new jobs in AI-driven fields. Yet experts caution that alongside opportunity, challenges remain—especially around ethics, data privacy, skill shortages, and inclusive governance. Abrar Ahmed Syed, an analytical engineering expert, emphasizes that “AI is reshaping legacy industries into agile, future-ready ecosystems,” highlighting the importance of ethical development and inclusive access to ensure technology benefits all layers of society. To that end, India’s government has shown commitment to balancing innovation with robust AI governance frameworks. India’s vibrant AI ecosystem—with strong government backing, a vast and growing talent pool, and cutting-edge public digital infrastructure—is positioning the country as the next frontier for AI development and adoption. As PM Modi eloquently puts it, “AI is writing the code for humanity in this century,” with India poised to be a leading author of that future. Stay ahead in the world of AI, business, and technology by visiting Impact Newswire for the latest news and insights that drive global change. *Reporting by Mohammed Hassan, Edited by Faustine Ngila at Impact Newswire

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