Artificial intelligence (AI) refers to the ability of a computer or a computer-enabled robotic system to process information and produce outcomes in a manner similar to the thought process of humans in learning, decision-making and solving problems.

Artificial Intelligence (AI) holds significant potential for driving socio-economic development in India through various applications:

• Healthcare: AI can enhance disease diagnosis by analyzing patient data and presenting hypotheses, as seen in IBM’s Watson supercomputer.
• Education: Automation of grading and personalized learning using AI can benefit students and teachers.
• Agriculture: Real-time advisory based on AI analysis of satellite imagery and weather data can boost agricultural yields.
• Robotics: AI-driven robotics can aid the elderly, improve traffic safety, and enhance disaster response.

However, India faces challenges in fully utilizing AI for development due to:

• Limited Private Investment: India’s AI investment is around $150 million, lagging behind economies like the U.S., Europe, and China.
• Insufficient State Support: NITI Aayog’s strategy on AI lacks a dedicated national program, unlike countries like China with substantial investments.
• Skills Gap: India’s science graduates lack proper training, leading to low employability, and there’s a shortage of qualified AI faculty.
• Internet Quality: Despite improved internet access, India’s AI progress is hindered by inadequate internet quality; full 5G deployment is delayed.
• Data Ecosystems: Absence of robust data ecosystems and access to intelligent data hampers AI development.
• Intellectual Property Issues: Unfavorable IP regulations hinder AI research and adoption.
• Resource Costs and Awareness: High costs and low awareness discourage AI integration in businesses.
• Regulatory Concerns: Lack of clear privacy, security, and ethical regulations raises data anonymization and usage issues.

In addition to incentivising both public and private investment, India will have to create a cadre of
technocrats and enable closer academia-industry linkages to harness AI’s potential in socioeconomic development of India. These challenges, if addressed in an expeditious manner, through
collaborative efforts by relevant stakeholders with government playing a leading role could form
the core to India’s march towards leadership in AI.