{"id":828522,"date":"2025-02-20T13:12:53","date_gmt":"2025-02-20T19:12:53","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/20\/india-leads-ai-adoption-in-2024-despite-concerns\/"},"modified":"2025-02-20T13:12:53","modified_gmt":"2025-02-20T19:12:53","slug":"india-leads-ai-adoption-in-2024-despite-concerns","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/20\/india-leads-ai-adoption-in-2024-despite-concerns\/","title":{"rendered":"India leads AI adoption in 2024 despite concerns"},"content":{"rendered":"
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  7. India leads AI adoption in 2024 despite concerns<\/li>\n<\/ol>\n<\/div>\n

    India<\/a>, the world\u2019s biggest democracy, wholeheartedly embraced\u00a0artificial intelligence<\/a>\u00a0(AI) adoption in 2024 after Prime Minister Narendra Modi\u00a0stated<\/a>\u00a0that AI could potentially transform India\u2019s priority sectors, including healthcare. At the same time, a global regulatory framework and a concrete plan to stop the misuse of AI were the most talked about issues in 2024.<\/p>\n

    Job displacement was another area of concern in India after an\u00a0International Monetary Fund (IMF) study<\/a>\u00a0pointed out that about 40% of jobs globally may be affected by the influence of AI. The United States of America faces a higher risk at 60%, while that in India is comparatively lower at 30% primarily because India\u2014a predominantly agricultural economy<\/a>\u2014employs a large number of people and, therefore, is less affected by AI.<\/p>\n

    \u201cIndia\u2019s AI landscape flourished in 2024, with sectors like healthcare, finance, and logistics leading the way. The deployment of AI-driven automation in public services and private enterprises grew significantly. The government\u2019s focus on skilling programs and AI centers of excellence has helped drive this momentum,\u201d\u00a0Rohan Sharan<\/a>, founder and chief executive of\u00a0Timechain Labs<\/a>, an on-chain application development firm utilizing\u00a0BSV blockchain<\/a>\u00a0technology, told CoinGeek.\u00a0<\/p>\n

    2024 also witnessed\u00a0India\u2019s richest man<\/a>, Mukesh Ambani,\u00a0pledging<\/a>\u00a0that his Reliance Industries would complete AI transformation across all businesses this year to become a global leader in\u00a0AI adoption<\/a>. That boosted confidence across the Web3 industry in India, signaling hope for faster adoption and bigger investments in the sector.<\/p>\n

    \u201cIn 2024, India witnessed substantial growth in the adoption of AI, with over 90% of businesses integrating AI technologies into their operations. This surge is driven by sectors such as banking, telecommunications, and media, where AI is utilized for tasks ranging from customer service automation to data analytics,\u201d\u00a0Sharat Chandra<\/a>, founder of EmpowerEdge Ventures and a\u00a0startup<\/a> enabler, told CoinGeek.\u00a0<\/p>\n

    \u201cDespite this progress, there remains a pressing need for clearer regulations and workforce training to fully leverage AI\u2019s potential,\u201d Chandra added.<\/p>\n

    IndiaAI Mission a major boost<\/strong><\/p>\n

    AI adoption saw a major boost in 2024, with the federal government approving over Rs 10,300 crore ($1.24 billion) for the\u00a0IndiaAI Mission<\/a>, slated over the next five years. The initiative focuses on building AI infrastructure and fostering innovation and entrepreneurship through centers of excellence in areas like healthcare and agriculture. India also announced its intention to procure over 10,000 graphics processing units (GPUs) in a public-private partnership, addressing India\u2019s computing capacity needs to develop a high-end AI ecosystem.<\/p>\n

    \u201cIndia is leading in AI adoption, with 30% of Indian companies having maximized AI\u2019s value potential, surpassing the global average of 26%,\u201d pointed out\u00a0Amit Kumar Gupta<\/a>, a legal practitioner at the Supreme Court of India.\u00a0<\/p>\n

    \u201cIn 2024, venture investments in Indian software are expected to reach $1 billion, with about 25% of venture dollars going to AI startups. The government\u2019s commitment to enhancing computing infrastructure and supporting startups through initiatives like the IndiaAI Mission\u00a0further solidifies India\u2019s position in the global AI landscape,\u201d Gupta added.<\/p>\n

    AI for general elections<\/strong><\/p>\n

    India\u2019s general elections in 2024\u2014where Modi won a rare third consecutive term\u2014was the first time almost all political parties and candidates used AI extensively to reach voters, and are estimated to have spent\u00a0more than $50 million<\/a>\u00a0on AI-generated election campaign materials.<\/p>\n

    However, the\u00a0largest election<\/a>\u00a0in human history\u2014with about 970 million registered voters\u2014not only used AI to target voters through dozens of language translations, but also used the technology to create\u00a0deepfake<\/a>\u00a0videos and conversational bots, raising concerns over the misuse of AI.<\/p>\n

    As a result, the Election Commission of India\u2014established by the Constitution of India and empowered to conduct free and fair elections\u2014issued an advisory<\/a>\u00a0to political parties warning them against misuse of AI tools to create deepfakes and spread misinformation and urging them to maintain the sanctity of the electoral process.<\/p>\n

    In December, the Ministry of Electronics and Information Technology (MeitY)\u00a0called for proposals<\/a>\u00a0from academia and industry under the IndiaAI Mission to create tools and frameworks for real-time\u00a0deepfake detection<\/a>, watermarking and labeling AI-generated content, developing ethical AI frameworks, and conducting red team assessments of AI models, among other initiatives.\u00a0<\/p>\n

    MeitY also supports two research projects to detect AI-generated fake videos, audio, and images.<\/p>\n

    Government initiatives lead the way\u00a0<\/strong><\/p>\n

    \u201cArtificial intelligence adoption this year has seen a major uptick in India. This was backed by strategic initiatives and growing enterprise investments,\u201d pointed out\u00a0Raj Kapoor<\/a>, chairman of the Global Alliance for Ethical AI Innovation.\u00a0<\/p>\n

    \u201cKey sectors such as manufacturing and telecom advanced into the \u2018expert\u2019 maturity stage, driven by digital-native business models and robust frameworks for AI risk management. However, sectors like healthcare lagged behind due to challenges in data governance and use-case identification,\u201d Kapoor told CoinGeek.<\/p>\n

    India has started using\u00a0AI for climate change risk<\/a>\u00a0mitigation, adaptation, and other related issues.\u00a0Abhay Karandikar<\/a>, secretary of India\u2019s Department of Science and Technology (DST),\u00a0said<\/a>\u00a0that the two missions of DST\u2014National Mission for Sustaining Himalayan Ecosystem (NMSHE) and National Mission on Strategic Knowledge for Climate Change (NMSKCC)\u2014have led to significant progress in supporting 19 centres of excellence and 37 major research and development programs over the years.<\/p>\n

    \u201cI believe that we may need to focus more on developing foundational models in AI in the\u00a0Indian context<\/a>,\u201d Karandikar said. He pointed out that indigenous climate models based on data would bring about a better understanding of addressing\u00a0climate change<\/a>.<\/p>\n

    India Meteorological Department (IMD) announced plans to use AI and machine learning to predict weather conditions and\u00a0reportedly<\/a>\u00a0assembled a network of 39 doppler weather radars covering 85% of India\u2019s landmass that allow hourly forecasts for major cities.<\/p>\n

    \u201cWe have started using artificial intelligence in a limited way but within the next five years, AI will significantly enhance our models and techniques,\u201d IMD\u2019s director general, Mrutyunjay Mohapatra, said in April.<\/p>\n

    \u201cIncorporating AI and machine learning allows us to harness past data to extract valuable insights and improve forecasting accuracy without solely relying on traditional physics-based models,\u201d Mohapatra added.<\/p>\n

    The Indian government also\u00a0intended<\/a>\u00a0to integrate\u00a0AI<\/a>\u00a0technology into digital public infrastructure to improve efficiencies and redefine the country\u2019s digital ecosystem. India\u2019s DPI includes a\u00a0Unified Payments Interface<\/a>\u00a0(UPI) public platform and\u00a0Aadhaar<\/a>, touted as the world\u2019s largest biometric identification system.<\/p>\n

    \u201cThe Ministry of Health and Family Welfare partnered with AI-based systems like NITI Aayog\u2019s collaboration with Microsoft for detecting tuberculosis using AI algorithms in X-ray images, improving early detection and treatment. AI solutions have been deployed to predict crop yields, optimize water usage, and detect pest infestations. For example, AI-based Kisan drones assist in monitoring fields and spraying pesticides,\u201d Kapoor pointed out.\u00a0<\/p>\n

    India\u2019s capital city, Delhi,\u00a0deployed AI-powered cameras<\/a>\u00a0to identify traffic rule violations, enabling automatic generation of penalties.<\/p>\n

    The provincial government of Gujarat\u00a0signed<\/a>\u00a0memorandums of understanding (MoU) with software majors IBM (NASDAQ: IBM<\/a>) and Microsoft (NASDAQ: MSFT<\/a>), and the National Association of Software and Service Companies (NASSCOM) for promoting the use of AI in the state.<\/p>\n

    In December, the state government\u00a0established<\/a>\u00a0an AI \u201cTask Force\u201d to develop a comprehensive strategy for creating and implementing an AI roadmap. The task force will focus on identifying key areas for AI integration and promoting AI literacy, among other responsibilities.<\/p>\n

    \u201cIn a progressive initiative, Gujarat introduced AI in schools to enhance personalized learning through adaptive technologies, enabling tailored education experiences for students based on their learning pace and style,\u201d Kapoor added.<\/p>\n

    Finance sector warms up to AI in 2024<\/strong><\/p>\n

    In the Indian banking and finance sector, Bank of Baroda, one of India\u2019s leading public sector banks,\u00a0introduced<\/a>\u00a0a generative AI-powered virtual relationship manager to significantly improve the digital customer service experience. A relationship manager provides advice to the bank\u2019s clients on investments and financial services on offer.\u00a0<\/p>\n

    This year, the\u00a0Reserve Bank of India<\/a>\u00a0(RBI)\u00a0acknowledged<\/a>\u00a0an increased mention of AI-related technologies in the annual reports of public sector banks. Earlier, private sector banks were more proactive towards AI.<\/p>\n

    In its October bulletin, the central bank\u2019s report pointed out that \u201centhusiasm\u201d towards AI-based technologies at many public-sector banks in India is broadly at par with their private-sector peers.\u00a0<\/p>\n

    The RBI also feels generative AI, or\u00a0gen AI<\/a>, will contribute $359-438 billion to India\u2019s gross domestic product (GDP) by 2029-30. Simultaneously, Indian firms\u2019 AI integration into production processes increased to 25% in 2024 from 8% in 2023.\u00a0<\/p>\n

    To tackle rising digital frauds, the RBI\u00a0introduced<\/a>\u00a0an artificial intelligence\/machine learning (AI\/ML)-based model,\u00a0MuleHunter.AI, developed by the Reserve Bank Innovation Hub (RBIH). The AI model is also expected to help banks deal with the issue of\u00a0mule bank accounts<\/a>, a typical tactic fraudsters use to funnel the proceeds of their fraudulent activities.<\/p>\n

    In addition, the central bank\u00a0announced<\/a>\u00a0its plans to set up a committee to develop a framework for the ethical enablement of AI for the finance sector. The committee, comprising experts from diverse fields, will be tasked to recommend a robust, comprehensive, and adaptable AI framework for the financial sector.<\/p>\n

    In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership\u2014allowing it to keep data safe while also guaranteeing the immutability of data.\u00a0<\/em>Check out CoinGeek\u2019s coverage<\/em><\/a> on this emerging tech to learn more\u00a0<\/em>why Enterprise blockchain will be the backbone of AI<\/em><\/a>.<\/em>\u00a0<\/p>\n

    Watch: Blockchain, IPv6, AI & 5G will pave the way for the new Internet<\/p>\n