India leads the artificial intelligence race thanks to the local offices of US firms

India has set the ball rolling for increased use of AI.
India has set the ball rolling for increased use of AI.
Image: Reuters/Max Rossi
We may earn a commission from links on this page.

India is way ahead of many other countries in implementing artificial intelligence (AI).

Well over half—58%—of the companies that are using AI in India are working with the technology at scale, i.e., they are going beyond pilot and test projects and adopting the technology at a larger scale, says a Capgemini report released this month. The report is based on a survey of nearly 1,000 companies that are using AI and have revenues of over $500 million across nine countries. It was conducted between March and June 2017.

This statistic is largely driven by American firms such as Accenture, Microsoft, and Adobe, which set up innovation centres in India, the report, titled Turning AI into concrete value: the successful implementers’ toolkit, said. Last year, India was the second-largest global site for new centres, after the US.

The Indian government’s Digital India initiative, too, has created a favourable regulatory environment for increased use of AI, it said.

Meanwhile, the slower pace of AI adoption in European countries—Spain (31%), the Netherlands (24%), and France (21%)—”[indicate that] firms in these markets are not yet ready to adopt the technology,” the report said.

The rise of automation and AI evokes mixed emotions in India. While improving labour skills is a reason to celebrate, especially with new jobs being created for them, low-skilled workers are turning redundant.