By Rahul Paith, CEO, MATH
A few decades ago, it would have been nearly impossible for a patient from a rural area to get immediate medical attention or for a healthcare provider to get a second opinion from a specialist in another city or access a patient’s previous medical history in real time. Today, with the power of Artificial Intelligence (AI) and the rise of new, improvised startup tools and solutions, the country is another step closer to the Digital India dream.
Undoubtedly, AI has played an important role in digitally transforming enterprises worldwide. In India, while the government encourages technological innovations through collaborations between academia and corporate stakeholders, the focus remains on building an ecosystem for startups that encourages innovation and modern solutions.
Role of government and startups in driving innovation and economic growth
New-generation start-ups, which are known for their unique ideas and cutting-edge solutions, are empowering the government to address challenges faced by various sectors including finance, agriculture etc. For instance, the healthcare ecosystem in India is massive, with startups developing AI-powered tools – that enable doctors to analyse medical scans (X-rays, MRIs, etc.), identify potential drug targets and customise treatment options.
Government-startup collaborations pave the way for economic growth and new job creation by not just trusting technology, but simultaneously supporting entrepreneurship and creating a conducive environment for startups to thrive. The Indian startup ecosystem could contribute USD 1 trillion to the Indian economy by 2025.
With the right funding, infrastructure and regulatory frameworks, the government enables startups to scale their innovations and reach wider markets, boosting innovation-led growth across different industries.
Transforming Industries with AI: Government-Startup Collaboration
One area where AI is making a difference at the grassroots level is agriculture. Farms utilising AI-powered solutions for crop health monitoring experienced an average yield increase of 12-15%. Startups are utilising predictive analytics to make appropriate forecasts and empower farmers to make informed decisions. The Ministry of Agriculture and Farmers Welfare is helping farmers with AI-powered chatbots, such as ‘Kisan e-Mitra’, available in multiple languages to help solve farmer queries.
One of the most successful collaborations between the government and fintech startups is the Unified Payments Interface (UPI), which recorded 12.82 billion transactions in December 2023 alone. Within a matter of months, this platform has transformed payment systems by facilitating instant mobile transactions, ensuring secure and compliant payment processing services to businesses and fostering a cashless future.
Security and surveillance are another area witnessing significant advancements. Startups are leveraging computer vision and machine learning to collaborate with the government to develop AI-powered video analytics solutions that enable real-time threat detection in public spaces, enhancing public safety, and response times and overall improving the efficiency and promptness in handling real-time alerts.
Overcoming Challenges: Legacy Systems and Data Security
However, no transformation is without its hurdles. Legacy systems, entrenched for decades, pose a significant challenge and converting these systems to digital platforms requires significant time, resources and expertise. Policy frameworks often struggle to keep pace with rapid technological advancements, creating regulatory hurdles.
In India, policymakers are responding promptly by introducing new initiatives like the National Deep Tech Startup Policy (NDTSP) and the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS). These endeavours aim to facilitate the conversion of ideas, concepts, and prototypes into commercially viable products, thereby fostering the advancement of new and emerging technologies to drive national initiatives forward.
. Amidst these efforts, addressing the critical challenge of data security emerges as a key priority. As India undergoes rapid digitalization, the volume of generated data increases substantially, necessitating robust measures to safeguard against cyberattacks and breaches. The government’s forthcoming enactment of the Personal Data Protection Bill is a significant step towards establishing a comprehensive data protection framework. However, effectively balancing data security with the imperative for innovation poses a continuing challenge.
Importance of Skilled Workforce in the AI Era
The long-term implications of AI are overwhelmingly positive. India can become a global leader in exporting AI services. However, this vision hinges on creating a skilled workforce. The next generation must be equipped with the necessary skills to thrive in the AI era. Python coding, algorithm development and data annotation are a few such areas of focus. Initiatives, such as the National AI Mission, launched by the government in 2023, aim to invest USD one billion in research and training over the next five years. It is a positive step towards nurturing a pool of talented AI professionals, ensuring India can capitalise on the AI revolution.
India’s digital transformation story is a work in progress, laying the foundation for a future defined by inclusivity and sustainability. By embracing startup innovation and focusing on responsible AI initiatives like Mission AI, India is establishing itself as a leader in the digital space. Ethical considerations and robust data governance frameworks remain crucial for this exciting path. However, with continued investment in talent development, India has the potential to achieve remarkable achievements. robust data governance frameworks, and continuous talent development.
