In our series featuring insights from Going Global – Asia Pacific, Kreston Global’s magazine on APAC’s mid-market landscape, this second article highlights India. India is renowned for its dynamic role in AI adoption and development, leading to transformative change across the Asia Pacific region.
India’s economic growth, projected to be 8.2% in 2024, is causing a major shift towards artificial intelligence. With more than 100 unicorns and strong enthusiasm for technology, India is set to harness AI to sustain its momentum. In the latest intrepreneur research conducted by Kreston Global, 96% of CEOs in Indian mid-sized companies are eager to adopt AI, surpassing the global average of 90%.
Vineet Rathi, Managing Partner at Kreston OPR Advisors, highlights that mid-sized businesses, particularly those with the next generation, are leading 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,” Rathi notes. Larger enterprises are also investing heavily in AI to enhance efficiency and maintain competitiveness.
Ethical AI and Data Security
As AI adoption progresses, addressing ethical use and data security is crucial. Rathi points out, “One of the biggest discussions around AI adoption is ethical AI,” with companies focusing on developing policies to manage cybersecurity and data privacy concerns. Cybersecurity was the number one risk identified by Indian business leaders in the intrepreneur survey, which tracks with this conclusion. “Frameworks and guidelines are being established to promote ethical AI adoption in India,” he adds.
Economic and Industry Impact
AI is set to transform India’s business landscape by enhancing efficiency and reducing costs. Rathi notes, “AI adoption will lead to increased efficiency, reduced human errors, lower operational costs, and job realignment,” positioning India advantageously in the global market. Tech firms such as Microsoft and Amazon are investing in AI infrastructure, with the Indian government also contributing $1.25 billion to support AI innovation and ethics. 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.”
Long-Term Vision
India’s sovereign AI project aims to complement private sector efforts and strengthen the country’s global position. Rathi concludes, “India’s AI capabilities offer significant competitive advantages, driving business and economic growth.” India’s strategic focus on AI is setting the stage for a transformative and sustainable future in the global tech landscape.
For those considering expansion in India, as a member firm of Kreston Global, we can assist and connect you with local experts who understand the dynamics of the Indian market. Please do not hesitate to reach out and contact us.
Read a summary and download your copy of the Going Global: Asia Pacific here.
*Correct as of 10 September 2024
*Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
