In the rapidly evolving landscape of artificial intelligence (AI), India finds itself at a critical crossroads. Despite its historical dominance in the IT outsourcing sector, the nation is alarmingly lagging behind global leaders like China and the United States in producing AI specialists. A recent observation warns, “If timely action is not taken soon, we (India) might be double-digit years behind the AI world if we don’t wake up.” This stark statement underscores the urgency of the situation and the need for immediate action.
While precise comparative data remains elusive, insights from the Global AI Talent Tracker 2.0 by MacroPolo—a think tank of the Chicago-based Paulson Institute—shed light on the disparity. In 2022, China accounted for a staggering 47% of the world’s top-tier AI researchers, the USA stood at 18%, while India lagged with a mere 5%. Notably, China’s share surged from 29% in 2019, highlighting its aggressive investment and focus on AI talent development. Furthermore, none of the top 25 institutions for elite AI research are based in India. Although India fares slightly better in terms of the origin of elite AI researchers, with 7% in 2022, it still trails behind the USA (28%) and China (26%). This gap is not just a statistic but a clarion call reflecting the pressing challenge India faces in the AI domain.
Historically, India has excelled in IT outsourcing, establishing itself as a global leader in creating talent for traditional IT roles over the past three decades, despite numerous technological shifts, including those in Web, Mobile, and Cloud computing. However, the AI landscape presents a new and formidable challenge requiring a different approach. Falling behind in AI technology could have significant economic repercussions for India. AI is projected to add over $15 trillion to the global economy by 2030, boosting global GDP by 26%. Countries leading in AI innovation and adoption are likely to capture the lion’s share of these gains. If India fails to match the AI advancements of nations like China and the US, it risks losing out on job creation, productivity gains, and the potential to revolutionise key sectors like agriculture, healthcare, and manufacturing.
Insights from Thought Leaders
Mustafa Suleyman, CEO of Microsoft AI, in his book “The Coming Wave,” emphasizes China’s substantial lead in AI, attributing it to over a decade of strategic focus and billions in investment. He notes that China’s commitment to AI is not just financial but also deeply rooted in national strategy, encompassing education, research, and industry. In contrast, I find India’s current investment and strategic focus in AI are lacking.
Rajiv Malhotra, in “Artificial Intelligence and the Future of Power,” critiques India’s leadership for shortsighted policies that prioritize immediate profits from wage arbitrage over long-term talent development. He argues that while India has been content with its role in the global IT services market, this has led to complacency and a failure to invest in the future of AI. Developing a robust pool of AI scientists and engineers demands decades of sustained effort—a commitment that cannot be achieved with the traditional outsourcing mindset.
The Path Forward: A Comprehensive Strategy
Despite these challenges, catching up is not beyond India’s reach. However, it demands visionary leadership across industry, government, academia, and industry bodies. The primary obstacle is the substantial investment needed, which may not yield immediate returns. Herein lies the crucial role of government support and public funding.
- Transforming Education and Empowering Youth
India’s education system requires a significant overhaul to integrate AI and related technologies into curricula at all levels. Introducing AI fundamentals in schools and advanced concepts in higher education can build a strong foundation. By leveraging its demographic dividend—the country’s substantial young population—India can cultivate a large pool of AI talent. Initiatives such as coding bootcamps, online courses, and vocational training in AI can equip the youth with essential skills. Encouraging problem-solving, critical thinking, and interdisciplinary learning will foster the innovative mindset required for AI research and development.
- Strengthening Research and Industry Collaboration
Promoting research and development within India to foster homegrown AI solutions is imperative. A robust focus on fundamental research is crucial, encompassing diverse fields such as mathematics, biology, neuroscience, and more. These foundational areas provide the theoretical underpinnings necessary for groundbreaking AI advancements. Â Strengthening partnerships between academic institutions and industry can drive innovation and practical application. Creating incentives for companies to invest in nurturing AI talent will bridge the gap between theoretical knowledge and real-world application. Internship programmes, joint research projects, and industry-sponsored labs can accelerate this synergy. Establishing dedicated AI research institutes with substantial funding, similar to China’s approach, can focus on long-term, cutting-edge research. Encouraging research publications, patents, and nurturing a culture of innovation will propel India’s AI capabilities forward.
- National Strategy and Global Partnerships
Developing comprehensive policies and initiatives to guide and support AI development efforts is crucial. The government should formulate a national AI strategy that outlines investment priorities, timelines, ethical guidelines, and regulatory frameworks. India must apply the successful ‘Make in India’ approach from defence and electronics to its AI sector. By forging strategic partnerships with the USA and Europe, India can accelerate its AI capabilities through knowledge transfer, joint research, and talent acquisition. Attracting global experts and creating an ecosystem that encourages international collaboration can help India rapidly bridge its AI gap, potentially leapfrogging in certain domains and establishing itself as a significant player in the global AI landscape.
- Ethical AI and Social Inclusion
As India advances in AI, it must navigate the dual challenges of potential job displacement and algorithmic bias. With a diverse workforce and socio-economic landscape, there’s an urgent need to reskill and upskill workers to thrive in an AI-driven economy, mitigating unemployment risks. Developers must ensure AI systems are free from biases that could exacerbate existing social inequalities across India’s multifaceted society. Establishing ethical guidelines and inclusive policies will promote social equity and economic stability. Addressing these ethical and social implications head-on will enable India to strive for an inclusive AI revolution that not only drives technological progress but also benefits all segments of society.
- Fostering Innovation and Building Infrastructure
Encouraging start-ups in the AI domain can foster innovation and contribute significantly to AI advancements. Providing funding, incubation centres, and mentorship programmes can nurture entrepreneurial ventures. Collaboration between start-ups and established companies can create a dynamic ecosystem conducive to growth. Investing in state-of-the-art infrastructure—such as high-performance computing facilities and access to large datasets—is essential for AI research and development. Public-private partnerships can facilitate the creation of these resources, making them accessible to researchers and developers across the country.
A Critical Juncture for India’s Tech Industry
With decades of experience in the IT services industry, I am confident in India’s ability to overcome technological challenges. However, this particular challenge demands a level of coordinated effort and investment that surpasses previous initiatives. We stand at a pivotal moment for India’s tech industry, and the actions we take now will significantly impact our global competitiveness in the AI era.
The government, industry leaders, educational institutions, and every stakeholder must unite to address this urgent call to action. By implementing a comprehensive strategy that encompasses education, research, industry collaboration, and ethical considerations, India can not only bridge the AI talent gap but also emerge as a global leader in AI innovation.
The time to act is now, and the stakes could not be higher. Let us harness our collective strengths to propel India into the forefront of the AI revolution, ensuring economic prosperity and technological leadership for generations to come.
