Artificial Intelligence is expected to change the Indian business environment by 2025. AI-driven revenue growth will become a main focus for businesses. The Indian government plans to improve computing infrastructure and create an ethical AI framework by mid-2025.
A study by IBM shows that Indian businesses will prioritize AI investments in improving customer experience (27%), strategic planning (16%), and IT optimization (16%). However, companies face challenges such as limited data access (46%), a lack of AI skills (42%), and difficulties in integrating and scaling AI solutions (38%).
“In 2025, AI will transform Indian businesses by boosting productivity and enabling new levels of scalability,” said Sandip Patel, Managing Director of IBM India & South Asia. He highlighted the growing focus on using AI responsibly to create significant business value. Patel also mentioned the rise of smaller, efficient AI models. These models deliver results as effective as larger ones but at a lower cost.
The government's commitment to AI development is evident through initiatives like the IndiaAI Mission, launched in March 2024, aimed at positioning India as a global leader in AI while ensuring its benefits are accessible to all societal levels. The mission has opened its second round of expression of interest (EoI), inviting proposals from academic institutes, startups, and companies on five key themes: watermarking and labeling of AI content, ethical AI frameworks, AI risk assessment, deepfake detection, and AI in public services.
This corresponds with India's aim of leveraging Artificial Intelligence for comprehensive development. Rohan Sharan, the creator of Timechain Labs, anticipates a significant incorporation of Artificial Intelligence with blockchain technology to improve data integrity and fraud identification, thus fostering trust in existing systems.
Nonetheless, the journey toward extensive AI implementation in India faces obstacles. Raj Kapoor of the Global Alliance for Ethical AI Innovation highlights that, even with technological progress, challenges remain such as a lack of AI expertise and ethical issues. He emphasizes the need for responsible AI practices, scaling of trustworthy AI solutions, and strengthening governance to accelerate AI adoption in 2025.
The Indian central bank has also recognized the transformative potential of AI, announcing plans to form a committee to draft ethical AI frameworks for the finance sector. This move is complemented by the introduction of MuleHunter.AI, an AI/ML-based model by the Reserve Bank Innovation Hub, to combat digital fraud and tackle issues like mule bank accounts.
To strengthen India's technological sovereignty, Defense Minister Rajnath Singh has urged scientists and engineers to master high-end technologies like AI and quantum computing, focusing on using these for societal welfare and addressing basic needs.
In terms of infrastructure, Abhishek Singh from the Ministry of Electronics and Information Technology (MeitY) confirmed that supercomputing resources, including over 10,000 GPUs, will be accessible by mid-2025, fostering an AI ecosystem. This infrastructure is crucial for developing India-specific AI use cases and ethical practices through public-private partnerships.
Sharat Chandra, founder of EmpowerEdge Ventures, envisions continued investment in AI infrastructure with a focus on creating applications tailored to Indian contexts, emphasizing ethical AI and innovation through collaborative efforts. Legal practitioner Amit Kumar Gupta also anticipates that explainable AI and government initiatives in talent development will drive ethical AI adoption and skill enhancement, with AI startups branching into niche areas and SMEs leveraging AI for operational improvements.
The integration of AI with blockchain is seen as crucial for ensuring data quality, security, and immutability, positioning enterprise blockchain as a backbone for AI's ethical and effective deployment in India.
As 2025 approaches, the synergy between government initiatives, private sector innovation, and ethical AI frameworks will likely propel India into a new era of technological advancement and economic growth. This growth will not only boost India’s position in global tech innovation but also ensure that AI benefits everyone in society. It aims to create a more inclusive and fair technological landscape.