Algo Rhythm: AI-as-a-Service can lead to wider adoption of AI

Artificial intelligence (AI) could contribute 10% of India’s GDP by 2025, or by up to $500 billion. Sangeeta Gupta, Nasscom’s senior VP and chief strategy officer, says India can ensure AI for all through AIaaS (AI-as-a-Service) — easy to implement cost-effective solutions. 

“India is already seen as an emerging destination for data annotation and labelling services globally. The critical building blocks are in place to propel India into one of the leading global hubs for data and AI services.”

AI to add $500bn to India’s GDP by 2025         

• AIaaS vista has about 100 players (software & service providers, network players, niche AI & analytics players)
• Tech ecosystem is AI’s largest adopter 
• Vibrant SMEs can drive AI adoption 
• AI market is led by IT sector, followed by BFSI, retail, and manufacturing

India’s AIaaS market set to lead the world

• Government role in AIaaS spread is key, as end-user & ecosystem enabler
• Government-sponsored and industry-academia R&D partnerships are key to local innovation 
• IT service players have a role in collaborating with deep-tech startups
• India’s AIaaS market comprises global systems integrators and Indian MNCs, specialised AI and analytics service providers, global hardware and networking giants

India’s talent infrastructure

• India is the largest exporter of technology services globally
• About 5.1mn people employed by the Indian IT services industry
• 300-320,000: India’s annual supply of AI and Big Data Analytics professionals
• Annual demand is 430-450,000  
• Data and analytics are the fastest-growing area for IT service providers 
• 10-15,000 fresh STEM graduates with AI/ML curriculum in 2020-21

Tackling lack of talent

• Entry-level talent lacks the ability to develop practical AI solutions for business, necessitating pre-job training
• AIaaS needs talent with the ability to integrate AI and data skills to develop solutions