Instead of building smarter AI models, Indian startups are focusing on smarter ways to use AI for businesses…
The last few years have seen a global AI race where a handful of tech giants are trying to outdo each other by building the best AI foundational model. ChatGPT, Claude and a host of other LLMs are the result of this race.
But instead of getting caught up in this race and spending millions to outdo these Silicon Valley giants, Indian tech startups are focusing on a completely different problem statement: using AI to solve real-world problems.
From software development and banking to manufacturing and enterprise operations, Indian companies are using existing AI models to automate or streamline these industries. And this is how India has entered it’s Applied AI era.
From Building Models to Building Solutions
Wipro recently announced its new Centre of Excellence in Bengaluru. It will use Anthropic’s Claude AI models to help businesses use AI across their workflows and operations.
Another recent update is HCLTech acquiring a 10.5% stake in an Indian startup Sarvam AI. Sarvam develops indigenous Ai capabilities and HCLTech is focussed on integrating AI into commercial products and services.
These moves show that Indian startups see value in harnessing existing AI models for business solutions instead of competing with the likes of OpenAI or Anthropic.
AI Moves from Pilot Projects to Production
According to the recent EY-CII “AIdea of India” report, 47% of Indian enterprises currently have multiple generative AI use cases running in production. Only 23% are still in pilot stages. This goes to show that they are well beyond the experimental phase and have been getting measurable value out of AI.
India is also leading the race in AI adoption. According to a report in The Times Of India, 92% of Indian professionals use AI tools regularly while 57% of large enterprises are actively integrating AI into their everyday operations.
Enterprise India Becomes an AI Testbed
Global companies are using their India-based technology centres to increase AI adoption.
Deutsche Bank has around 9,000 employees in its technology function in India, which is about 45% of its global tech workforce. Speaking at a recent event in Bengaluru, the chief information officer Denis Roux said: “We’re seeing things that were two years that are now getting done in three to six months. We know the productivity is there.”
Another report in Reuters claimed that multinational corporations were now using AI teams in India to automate creative and operational work. This in turn allows them to bring more functions in-house and reduce dependence on external agencies.
It’s not about just chatbots anymore. Recently, another startup called Novyte partnered with Chemvera to use AI for materials discovery and specialty chemical development. This shows how AI is being used to influence industrial research, manufacturing and product innovation.
India’s combination of engineering talent and operational scale makes it an ideal spot for AI deployment as far as global companies are concerned.
The Last Word
Silicon Valley continues to be locked in a race to develop the smartest AI model. But India isn’t keen on joining that race.
Instead of building the smartest AI model, India is focussed on figuring out the smartest ways to use AI in the real world.
In case you missed:
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