Unlocking Potential: How the Global AI Race is Creating Unprecedented Opportunities in Technology

By Raju Vegesna

The artificial intelligence (AI) world is changing fast. Countries are competing fiercely to lead in this technology. The US has invested more than $500 billion through initiatives like the Stargate Project. Meanwhile, China is advancing with affordable AI models through its DeepSeek program, gaining a significant edge in development. Additionally, AI chip shortages are prompting companies, like OpenAI, to create their own chips by teaming up with manufacturers in Taiwan.

In this global race, India is making a bold move with its AI Mission, initiated by Prime Minister Narendra Modi. This project emphasizes India’s goal of becoming a leader in AI innovation, instead of just being a consumer of it.

During the AI Action Summit in Paris, Modi shared India’s vision of using AI to tackle major global issues, from healthcare to climate change. The summit highlighted the need for responsible AI practices and solutions that benefit the public.

By engaging in international discussions, India shows its commitment to ethical and inclusive AI. It is also strengthening connections with France, specifically through the La French Tech network, which supports Indian startups in accessing advanced AI tools.

While the US and China compete in AI investment, this rivalry opens up opportunities for other nations. This competition sparks innovation and development, paving the way for countries like India to establish a strong presence in the AI sector.

So, how can India thrive in this race? Developing foundational AI models often requires significant resources, which only a few nations can afford. However, India can excel in AI inferencing. This involves using existing AI models to solve specific industry problems, which demands less capital.

India has a history of successfully adapting proven technology. For instance, when companies like SAP and Microsoft launched foundational software, India leveraged it to develop a booming IT services sector, specializing in customization and support.

AI presents a similar chance for growth. Instead of mainly focusing on creating new models, India can take the lead in implementing and scaling AI solutions. These applications could enhance business automation, customer experiences, and analytics, reshaping various industries.

With its large pool of talent in AI and data science, strong IT services sector, and vibrant startup scene, India is well-positioned to become a global hub for AI implementation. This could bring extensive economic benefits and generate countless skilled job opportunities.

India’s approach to AI isn’t about catching up—it’s about leading in key areas. The country is on track to develop a lucrative AI services industry, unlocking vast possibilities across different sectors:

• Public Services: AI can help streamline government operations, improving efficiency in systems like digital identity verification and smart cities.
• Healthcare: AI-driven solutions can enhance diagnostics, predictive analytics, and personalized treatments, significantly cutting costs while improving patient care.
• Agriculture: AI can optimize farming practices, improving crop yields and introducing sustainable methods.
• Sustainability: AI technologies can enhance disaster response, energy management, and energy efficiency in renewable sectors.
• IT and Business Services: Increased demand for AI implementation positions India’s IT giants to excel further in this area.
• Workforce Development: The AI boom will drive the need for skilled workers, from engineers to ethics specialists, allowing India to cultivate a robust talent pool.

The Indian government has invested over $1 billion into the IndiaAI Mission and is backing semiconductor projects worth ₹1.5 trillion. These initiatives aim to reduce dependency on hardware imports and boost the development of critical AI tools. India’s skilled workforce and cost-effective labor make it an attractive destination for global investment.

With its strong background in software services and a dynamic startup culture, India can emerge as a leader in AI deployment and services. Just as it capitalized on technologies from major software companies, India can harness the power of AI inferencing to fuel significant economic growth.

The moment for India’s AI revolution has arrived. The focus now is on how quickly the country can scale its capabilities.

The writer is chairman, Sify Technologies.

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