The generative artificial intelligence (AI) start-up landscape in the country is a rapidly expanding domain. According to a recent report, over 60 companies in India provide solutions and services related to generative AI across different industry sectors.
Generative AI refers to a subset of AI techniques and models that are designed to generate new and original content. It involves training machine learning models to learn patterns and characteristics from existing data and then using that knowledge to generate new data or content that is similar to the training data. Generative AI can be applied to various domains, including text, images, and music.
In India, the generative AI sector has witnessed a substantial investment of over US$ 590 million, with the last year experiencing the highest inflow of funds. The report delves into the market composition, financial climate, technological landscape, value generation across different use cases, and revenue trends and expectations observed among India’s generative AI companies.
Additionally, it provides recommendations to various stakeholders within the ecosystem on fostering a conducive environment that can unlock the vast potential of generative AI on a large scale and stimulate market growth.
The report highlights that generative AI represents a significant advancement from artificial narrow intelligence to artificial general intelligence. In 2022, generative AI companies globally received over US$ 2.5 billion in private investments, constituting approximately 3% of the total private investments in AI. Indian generative AI firms have attracted a cumulative investment of more than US$ 590 million to date, with the year 2022 alone accounting for approximately 70% of the total funding secured.
However, there are several challenges that entrepreneurs in the market face, including the scarcity of high-quality training data, the need for patient capital, and limitations in computational capacity. The report suggests that industries implement certain approaches to foster understanding and acceptance of generative AI among consumers and businesses.
Initiatives should be undertaken to raise awareness and demystify the technology. Efforts should be made to promote and advocate for the adoption of responsible AI frameworks, emphasising ethical considerations and best practices.
Encouraging co-innovation and open innovation models in the field of applied generative AI can drive collaborative advancements and spur creativity within the industry. Partnering with industry associations can help in scaling up the skilling and training of incoming talent, ensuring a proficient workforce capable of effectively leveraging generative AI technologies.
Additionally, the report suggests the government should prioritise the identification of key use cases within national departments, with a focus on integrating generative AI into public services and existing data platform interface (DPI) platforms. Allocate mission-scale funding to support the development of local compute resources, Indian datasets, and innovations in quantum and AI technologies.
The government must also take the necessary steps to enact a comprehensive data privacy law that safeguards personal information and addresses privacy concerns in the context of generative AI applications. It should engage in lobbying efforts at international forums to advocate for globally consistent responsible AI guidelines, promoting ethical practices and the responsible use of generative AI technologies across borders.