The Impact of Artificial Intelligence On The Indian Startup Ecosystem

Editor - CyberMedia Research

Editor - CyberMedia Research

You would be surprised to know the amount of proliferation that AI-based applications have been able to achieve across Indian businesses within a very short period, and surprisingly a large number of these businesses are startups.

From the healthcare sector to matchmaking, the usage of AI is truly diverse, and it’s helping businesses grow at a rapid pace. Due to the size of the Indian population, the amount of data handled by Indian businesses is huge. Thus, AI-based systems can streamline processes and bring about heightened efficiency of systems.

Globally, analysts claim that AI-based startups will add close to $15 trillion to the economy within the next decade. Indian startups believe in the movement, and we can already see investments in AI tech touching close to $1 billion across sectors.

Who is Leading This AI-Powered Startup Ecosystem?

The four primary segments where AI is meant to take off in India are healthcare, automotive, retail, and agri-tech. India being an agricultural country, has huge potential for AI-based agri-tech companies.  Startups such as Pramaan Exchange are leading this sector by providing satellite imaging services that are mapped by AI-based applications to provide accurate predictions to farmers.

Another segment is fintech, where startups such as Razorpay have skyrocketed with the help of AI tech. Many healthcare startups are also benefiting from AI-based diagnosis applications. 

Other startups worth mentioning in this conversation are Alike (travel), Delhivery (logistics), and iXceed Solutions (IT consulting).

What is the Future of AI in India?

With the semiconductor production industry in India finally taking off, the use of AI is only set to rise. According to analysts, the AI market in India will be well worth $8 billion by 2030, and at least 30% of startups in India will be driven by AI in one way or another.

Tech investors are also pointing to the fact that India’s geographical positioning and economic needs will serve as a propeller for the AI revolution. But, certain sectors do need to play catchup. For startups in the procurement and HR segments, which are some of the largest in India, AI proliferation is still quite weak as compared to the rest of the world.

The good news is that various government schemes are being developed that will help startups adopt AI-based technology with fewer investments. Â