Vineet Rathi
Managing Partner, Kreston OPR Advisors, India
Vineet Rathi is the Managing Partner at Kreston OPR Advisors, with extensive experience in Internal Audit, Risk Advisory, and Corporate Finance. He specialises in assessing and managing enterprise risks, developing financial strategies to enhance profitability, and providing valuation insights for businesses, assets, and liabilities. His work in Audit and Assurance focuses on ensuring transparency and accuracy in financial reporting. Vineet is knowledgeable in these areas and is open to discussions and professional connections.
India’s sovereign AI plans
July 31, 2024
India’s sovereign AI plans are coming into sharp focus as the economy sees rapid growth, with the highest global rate of 8.2% in 2024. India is also home to over 100 unicorns, making it unsurprising that there is a strong appetite for new technology, including AI, to sustain this momentum.
Our latest interpreneur research indicates that 96% of CEOs of Indian businesses with turnovers up to £300 million feel ready to harness AI, compared to a global level of 90%.
Vineet Rathi, Managing Partner at Kreston OPR Advisors, offers a comprehensive view of this transformative phase in India’s growth, sharing his thoughts on the readiness, impact, and future potential of AI in India
Next-gen driving AI
Vineet Rathi, Managing Partner at Kreston OPR Advisors, offers insights into this transformative phase in India’s growth. He believes generational shifts are driving mid-market AI adoption. “Mid-sized businesses in India, particularly those with second or third-generation leadership, are at the forefront of AI adoption. These businesses recognise that enabling technology provides a necessary edge for growth.”
Larger enterprises are also heavily investing in AI to enhance efficiency and stay competitive. “Businesses are incorporating AI into business operations to ensure they are not left behind in the technology adoption race,” he adds. The key drivers include the potential for significant operational efficiency and informed decision-making.
Ethical AI
In addition to addressing the ethical implications of AI, focusing on data privacy and security is critical. “One of the biggest discussions around AI adoption is ethical AI,” Rathi highlights. “With cybersecurity and data breaches being significant concerns, companies are developing policies to ensure responsible AI use.” Cybersecurity was the number one risk identified by Indian business leaders in the interpreneur survey, which tracks with this conclusion.
“Frameworks and guidelines are being established to promote ethical AI adoption in India,” he adds.
Economic and market impact
AI is poised to transform India’s business landscape, especially for large companies. Rathi explains, “AI adoption will lead to increased efficiency, reduced human errors, lower operational costs, and job realignment.” The economic benefits include better decision-making and long-term cost savings, positioning businesses to thrive in a competitive market and driving overall economic growth.
Investment in AI infrastructure
The inflow of investment by tech giants like Microsoft and Amazon is driving AI infrastructure in India. “This investment will lead to increased investment by ancillary industries, more job opportunities, and a larger IT talent pool for AI services,” says Rathi. However, he cautions that challenges remain. “We are still in the early stages of AI adoption, and there are concerns about ethical use and control.” Despite these challenges, the opportunities are immense. “India has the potential to lead in ethical AI adoption and become a global frontrunner in various industry verticals,” he believes.
Government incentives and policies
Rathi believes the Indian government’s proactive stance on AI is crucial. “The government has earmarked about $1.25 billion towards developing a robust AI ecosystem and supporting AI startups.”
Initiatives such as developing centres of excellence for AI businesses and policies incentivising ethical AI adoption are essential. “Increased funding for research and enhanced public-private partnerships are necessary to support AI innovation.”
Industry-specific applications
Rathi identifies several industries in India that are leading the AI revolution; Healthcare, agriculture, finance, and retail.
“AI is making significant strides in various industries. In healthcare, it’s used for the initial analysis of health reports, drug discovery, early detection of breast cancer, and analysis of X-rays, MRIs, and CT scans. In agriculture, AI aids in yield prediction, soil health analysis, and crop growth monitoring. The finance sector benefits from AI through KYC documentation and fraud detection, identifying outliers in credit card transactions based on geography, transaction value, time, and month. In retail, AI enhances inventory management and employs camera AI detection to analyse customer movement and body language within stores.”
— Vineet Rathi, Managing Partner, Kreston OPR Advisors
Environmental impact
Balancing AI growth with sustainability goals is critical. “Energy-efficient data centres and sustainable practices are essential to mitigate the environmental impact of AI infrastructure.” Tech companies are increasingly setting carbon-neutral goals to align AI development with environmental objectives. “Promoting energy-efficient data centres and sustainable practices will help balance AI growth with environmental sustainability,” he emphasises.
R&D and Innovation
India hosts Microsoft’s largest R&D operations outside the US, significantly influencing local innovation and AI development. “India could become the largest R&D hub with its resource pool,” Rathi notes. Indian engineers and developers are key players in global AI projects, often being top contributors on platforms like GitHub. “Their collaboration with global teams is instrumental in advancing AI adoption and innovation,” he says.
Long-term vision
These developments are running in tandem to India’s plan for sovereign AI, first discussed by Minister of State for Electronics Rajeev Chandrasekhar, with government promises that India’s own AI project will not compete with this large-scale investment of private AI.
India’s advancements in AI and infrastructure will enhance its position in the global market. “India’s growing AI capabilities provide competitive advantages, such as cost efficiency, innovation, and improved operational processes,” Rathi states.
The future of AI in India remains promising. “The potential for AI to drive business and economic growth is immense,” Rathi concludes. “Large clients are strategically positioning themselves to leverage AI, recognising its value in enhancing business operations and competitiveness. AI can make businesses efficient across all sectors, and we are increasingly looking at opportunities to leverage AI for business use cases.”
If you would like to speak to an AI expert in India, please get in touch.
