Artificial intelligence (AI) offers global options to complement and supplement human intelligence while also improving people’s lives and workplaces. AI and machine learning, with their diverse applications, may be found in practically every technological element of our lives. On a larger scale, AI and machine learning have had a disruptive impact on various industries, including agriculture, retail, healthcare, and education, among others. It also has the potential to transform businesses and increase efficiency by automating jobs, personalising customer experiences, and optimising operations.
Spending on AI and machine learning has been increasing sharply in tandem with the technology’s potential. India spent US$ 665 million on AI in 2018, a 109.6% increase from the previous year. Additionally, spending on AI is expected to increase at a 39% CAGR from 2019 to 2025, reaching around US$ 11,781 million by that time. According to NITI Aayog, artificial intelligence (AI) might boost India’s GDP by $1 trillion by 2035.
In India, the AI business is quickly evolving, with multiple companies employing AI technologies for a variety of applications ranging from healthcare and finance to retail and manufacturing.
Importance of AI in Today’s World
The world is changing at a rate never seen before, thanks to artificial intelligence. Its influence extends well beyond automation and smart devices. A closer look at why AI is so important in the modern world is provided below:
- Automation: Automation has now reached a level where day-to-day tasks can be performed quickly and smoothly with zero human intervention. This also allows business owners and workers to focus on other aspects of the business. This has led to increased efficiency and productivity across various sectors, from manufacturing and logistics to customer service and data processing.
- Data Analysis: Data generation nowadays is now growing at an exponential rate. AI is excellent at finding patterns in large datasets, analysing them, and deriving conclusions that people would overlook. This enables companies to forecast future trends, optimise processes, and make data-driven decisions. For instance, artificial intelligence (AI) can be used to identify irregularities in financial transactions to stop fraud or analyse consumer behaviour to tailor marketing campaigns.
- Innovation: Artificial Intelligence is driving innovation in a variety of industries. Artificial intelligence (AI)-driven technologies are driving healthcare research and development, resulting in advances in medication development, medical diagnostics, and personalised treatment. Artificial intelligence (AI) is opening the door for intelligent traffic control systems and self-driving automobiles.
- Economic Impact: Artificial intelligence is not only revolutionising business but also generating millions of new jobs across various industries in India. It is also transforming various industries by boosting productivity, fostering creativity, and automating repetitive chores. This is creating opportunities for professional advancement, financial expansion, and improved service standards. This covers manufacturing, IT, healthcare, and education. With a CAGR of 25–35%, the AI industry in India is expected to reach around $17 billion by 2027.
Adoption in India
The last two years have witnessed a 20% surge in the use of artificial intelligence (AI) and machine learning (ML) in India’s manufacturing sector, with 54% of these enterprises utilising these technologies. The manufacturing sector has benefited most from AI in three business functions: supply chain and logistics, manufacturing and operations, and IT and cybersecurity. This has been demonstrated by AI and ML implementations in the 12 to 18 months after the epidemic.
AI-powered automation and robotics in the automobile industry are streamlining production procedures, improving accuracy and speed, and optimising the process. AI is used in smart factories in the automotive sector for quality control and assembly line operations to maximise production efficiency.
The industrial robotics market in India is expected to develop at a compound annual growth rate (CAGR) of 2.92% to reach $264.10 million by 2028. Manufacturing processes are being revolutionised by industrial robots. These robots, which are driven by AI algorithms, complete tasks quickly and precisely, which increases productivity and lowers labour costs.
Listed AI Companies in India to Track
Below are some of the AI companies in India to go for:
-
Zensar Tech
Zensar Tech is a prominent technology solutions consulting and IT services firm which possess an engineering background. This company is moving from being a ‘living digital’ to a ‘living AI’ organisation. Their AI strategy includes three pillars: decision-making, research, and experience. Their most recent approach is the development of the company’s “return on digital NeXT” strategy, which was implemented approximately a year ago. This is now focused on new and exponential technologies (NeXT) in the areas of artificial intelligence (AI), natural language processing, blockchain, the Internet of Things (IoT), and human experience.
-
Infosys
A multinational information technology organisation based in India, Infosys Limited offers outsourcing, information technology, and business consulting services. The company was formed in Pune and its main headquarters is located in Bengaluru. In May 2024, the Chief Executive Officer of Infosys stated in a news interview that the company is currently working on 200 AI projects. He also mentioned that they are currently training six out of eight employees in AI and its Generative AI sector to focus on getting more opportunities.
-
Tech Mahindra
Tech Mahindra is an IT and consulting company based in Pune which has around 146,000 employees across 90 countries. For less than $5 million, the company created a large-language model (LLM) in just five months. The name of this AI initiative is “Project Indus.” It speaks about forty distinct regional languages and dialects.
-
Oracle Financial Services Software Ltd
The company Oracle Financial Services Software Ltd is a subsidiary of the Oracle Corporation and is based in Mumbai. Launched in 1990, this company is involved in insurance and financial technology. Its Products division oversees the development of banking software and product-related tasks like improving and implementing banking operations. Oracle FLEXCUBE for Islamic Banking and Oracle FLEXCUBE Universal Banking are just a couple of the banking products that the company provides.
-
Tata Consultancy Services (TCS)
Tata Consultancy Services Limited is a global Indian provider of information technology services and consulting in Mumbai. Its offices are located in 150 locations across 46 countries. Currently, the company is involved in more than 100 projects in Generative AI, which focuses on increasing efficiency and productivity across various sectors.
-
HCL Technologies
HCL Technologies is an Indian multinational IT services company that has been incorporating AI into its service offerings. By the end of the year, it wants to have trained 50,000 workers in generative AI, or GenAI. The corporation hopes to preserve its competitive advantage in the worldwide market by utilising AI developments through this step.
-
Tata Elxsi
Among the top global suppliers of design and technology services in a variety of sectors, including broadcast, communications, healthcare, and transportation, is Tata Elxsi. The Artificial Intelligence Centre of Excellence (AI CoE) was developed by Tata Elxsi. Its cloud-based integrated data analytics frameworks, with patent-pending technologies, enable customers to quickly implement and configure the landscape to obtain better results and insights. The Cognitive Video Services Framework is another AI-based video Analytics project that helps with tasks such as personalising content for its users and transforming videos with the help of AI.
-
L&T Technology Services
With its headquarters located in Vadodara, L&T Technology Services is a worldwide technology firm based in India that offers engineering research and development services. L&T has also embraced emerging technologies, including artificial intelligence, as part of its digital journey that primarily centres on machines and people.
-
Persistent Systems
With its headquarters in Pune, Persistent Systems is a multinational Indian provider of technological services. Its main businesses include cloud computing, the Internet of Things, software product engineering, endpoint security, and big data analytics. It announced the launch of its new AI project ,SASVA in March 2024. SASVA is an innovative enterprise AI platform that is secure and manageable and uses machine learning (ML) and large language models (LLMs) to speed up software releases, reduce time-to-market, and increase productivity.
-
Cyient
Cyient is another multinational technological organisation which was launched in 1991. It was formerly known as Infotech Enterprises Ltd. To speed up end-to-end test automation, it announced the release of CyFAST, an AI-powered framework for Automated System and Software Testing, in June 2022. The platform offers a complete environment for managing testing projects by enabling end-to-end test automation across desktop, mobile, embedded applications, and hardware devices. Businesses have invested over US$250 billion in smart, connected, and autonomous devices in 2021, with a 15-20% compound annual growth rate predicted through 2025.
In The End
The Indian AI market is primed for tremendous expansion, creating intriguing potential for investors. This list is a good place to start when looking for established organisations that are using AI in a variety of industries. Remember that AI stocks can be volatile sometimes. To take advantage of AI’s disruptive power, conduct extensive research, analyse your risk tolerance, and align your investments with your financial goals.
-Nischay Avichal
