India has emerged as a leader in digital transformation, outperforming both the US and UK in key metrics, according to a latest report. With a reported 56 per cent increase in the proportion of digital services, India leads all surveyed nations.
The UST report also noted that Indian companies allocate an average of 24 per cent of their revenue to digital tools and technologies, slightly higher than the US and UK, which invest 20 per cent and 22 per cent, respectively.
AI Talent
While the country faces challenges, such as a shortage of AI-skilled personnel—acknowledged by 76 per cent of global respondents as well—its proactive approach to digitalisation reportedly positions it ahead of its Western counterparts. This progress points to India’s potential to harness AI better than most.
As per a Deloitte-nasscom study, the demand for AI talent in India is projected to increase from 6-6.5 lakh to over 12.5 lakh between 2022 and 2027, with a compound annual growth rate (CAGR) of 15 per cent. However, the AI market itself is expected to grow at a faster pace of 25–35 per cent CAGR, which could indicate a potential gap between the demand for talent and the available supply.
“There’s a need for a greater number of data and AI professionals in the workforce, and that’s something being addressed within universities globally. I think it is already recognised more widely than just as an opportunity for a career in AI development,” Heather Dawe, Chief Data Scientist at UST told BW Businessworld.
“It is a definite opportunity, but more than that, our survey shows a desire in large enterprises globally to use AI and benefit from it. However, they aren’t currently able to fulfill their requirements fully because they don’t have enough people with the necessary skills in their business to do that,” she added.
Globally, the report found that 92 per cent of companies surveyed align their AI initiatives with broader business objectives, indicating a strategic and purposeful approach to AI integration.
Need For Robust Regulatory Frameworks
The UST study also found that about 91 per cent of Indian companies believe that enhanced regulations are essential for the responsible implementation of AI. This sentiment points to a growing awareness of the ethical implications surrounding AI technologies, particularly concerning data privacy, algorithmic transparency and accountability.
Organisations are increasingly concerned that inadequate regulatory frameworks leave them vulnerable to ethical pitfalls and compliance issues. The lack of clear guidelines can result in misuse of AI technologies, leading to potential harm to consumers and society at large.
When asked whether governments globally lack the expertise to develop proper AI regulations, UST’s Dawe disagreed, stating that the slow evolution of AI regulations is not primarily due to policymakers having less expertise compared to industry experts. She argued that governments globally engage in extensive consultations with industry stakeholders when developing regulations. Drawing from her own experience participating in UK consultations, she said that the real challenge lies in the inherent complexity of creating effective AI regulations.
“It is a complex environment, and AI is difficult to explain and understand. The regulators, the people developing the regulations on behalf of the government, have a challenging job. I think that is a significant part of it. It is not impossible, as we have seen with the EU, but these governments want to ensure they have appropriate controls on AI while not stifling innovation,” Dawe said.
