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AI startup landscape in India faces tech depth woes, talent drain

India trails global peers in core AI innovation despite rising investor interest

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One major challenge facing India’s AI startup ecosystem is the outflow of top-tier technical talent. Image: Shutterstock

Jaden Mathew Paul Mumbai

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Experts in India’s artificial intelligence (AI) startup ecosystem fear an overuse of the AI label by companies, which see it more as an efficiency layer rather than a core innovation driver. 
According to them, some recently established companies are branding themselves as AI-driven, though in many cases AI functions more as a tool to enhance efficiency rather than redefine workflows. 
Abhishek Srivastava, general partner at Kae Capital, said while vertical software as a service (SaaS) companies are integrating AI to optimise repetitive tasks, their core technology stack and workflows remain largely unchanged — making AI more of a “wrapper”. In