An Augmented India - Blog

Artificial Intelligence (AI) has rapidly transformed from a futuristic concept to an integral part of various industries across the globe. In India, the AI revolution is gaining remarkable momentum, especially among startups. The country is undoubtedly thriving, with AI-focused companies making their mark in fields like healthcare, finance, agriculture, and more.

Cities like Bengaluru, Mumbai, and Hyderabad are quickly becoming hotbeds for innovation, therefore bringing about a new generation of companies that are leveraging AI to solve complex problems.

Creating Pathways to Growth
India’s AI ecosystem is flourishing with an increase in startups leveraging cutting-edge technologies to drive innovation and efficiency. More than 50 percent of Indian startups are integrating these solutions which in turn reflects the growing relevance of AI in the startup ecosystem.

For instance, CoRover, a Bengaluru-based startup, specializes in AI chatbots designed to enhance operational efficiency and customer experience for businesses. Their technology focuses on creating human-centric conversational AI platforms that are secure, scalable, and reliable. The company has its focus on creating employment opportunities for rural Indians through AI-driven solutions.

Additionally, Kissan AI is revolutionizing the country’s agriculture by integrating AI and natural language processing (NLP). The company’s flagship product, Dhenu 1.0, is an agricultural large language model that understands English, Hindi, and Hinglish, thus helping farmers with queries, crop recommendations, and pest control. In addition to Dhenu 1.0, the company is developing AI tools for soil and crop monitoring, precision agriculture, and market intelligence, further supporting the agricultural sector with advanced, data-driven solutions.

The NewSpace Research and Technologies (NRT) group, an Indian software giant, has implemented augmented reality (AR)-based maintenance solutions for the aerospace and defence industries. This step has significantly boosted operational efficiency and customer satisfaction.

Circling back to the AI trend, the healthcare sector has also begun integrating spatial computing and the Metaverse to transform patient care and medical training. Apollo Hospitals has adopted spatial computing technology to enhance surgical training programs, allowing surgeons to practice complex procedures in virtual reality simulations. This advancement improves surgical skills, reduces errors, and enhances patient safety, leading to better healthcare outcomes.

Tata Consultancy Services (TCS), an Indian IT services and consulting firm, has launched a Metaverse practice to provide interactive and immersive experiences across various sectors, including a Metaverse-based car dealership and an NFT marketplace.

With that in mind, it is evident that startups are thinking out of the box to enhance existing processes and also create new opportunities across various sectors.

Dollars and Data: Funding India’s AI Market
Foreign investments have played an important role, with the country’s AI market size reaching US$ 680 million in 2022. As the demand for artificial intelligence rises, it is projected to grow to US$ 3,935.5 million by 2028, showcasing a compound annual growth rate (CAGR) of 33.28 percent from 2023 to 2028, according to IMARC. Simultaneously, AI expenditure in India surged by 109.6 percent to US$ 665 million in 2018 and is estimated to grow at a CAGR of 39 percent to reach US$ 11,781 million by 2025, as per India Brand Equity Foundation.

For example, Abacus.AI, a cloud platform specializing in AI/ML headquartered in San Francisco, has established a research and development wing in Mumbai. With a vision to invest US$ 50 million in India within the upcoming three years, the company aims to expand its presence. Initially, they plan to recruit 20 engineers and scientists, with ambitions to scale up to 200 over the same period.

Telangana Redefining Reality
As the country moves forward in AI, all eyes shift to Telangana as it emerges as a prominent hub for AI startups in India. The surge in AI startups in Hyderabad can be attributed to several factors. Firstly, Hyderabad benefits from a pool of talented professionals graduating from esteemed universities and institutions, providing ample human resources for AI development. Moreover, the state government has been proactive in promoting AI and related technologies through various initiatives and policies. The Telangana AI Mission (T-AIM), in collaboration with the National Association of Software and Service Companies (NASSCOM), aims to develop the state as a global AI innovation hub.

On that note, several AI startups in Telangana are making significant strides in various sectors. For instance, based out of Hyderabad’s T-Hub, Kenyt.AI, offers a conversational consumer interaction platform. The company’s Chatbots and Voicebots leverage powerful AI engines, achieving an impressive accuracy rate of 95 percent, exceeding industry standards. Additionally, TechVedika Inc—a US-headquartered and Hyderabad-based offshore development center—specializes in AI and Cloud services to deliver cutting-edge yet simple technological solutions to enterprise clients globally. The company assists in solution development and offers advisory services across various industries.

From Startup Roots to Global Heights
The future of AI in India looks promising, with the potential to add close to US$ 500 billion to the country’s GDP by 2025. India ranks 6th on the Global AI Vibrancy ranking by Stanford University and excels in the ‘Inclusion’ parameter. The country is experiencing a growing AI talent pool, with over 500,000 professionals employed in AI, machine learning, and analytics. Moreover, India ranks 8th in AI patent filings and 4th in AI scholarly papers.

The COVID-19 pandemic has accelerated AI adoption, with 45 percent of organizations in India increasing their AI usage. As AI continues to penetrate various industries, the focus will be on enhancing AI-driven solutions to improve efficiency, safety, and customer experiences.

In conclusion, a growing startup ecosystem, significant foreign investments, and proactive state initiatives, particularly in regions like Telangana, fuel the growth of AI in India. As AI technology evolves, India is well-positioned to become a global leader in AI innovation, driving economic growth and transforming industries across the board.