How AI is shaping the ‘India Narrative’ in 2024

Corporate leaders today are observing a practical shift in how businesses approach operational efficiency through the integration of AI and automation. A recent survey indicates that 66% of Indian CEOs are prioritizing Generative Artificial Intelligence (Gen AI) in their strategic investments. This prioritization marks not just a shift but a seismic shake-up in our technological landscape.

In the midst of this strategic recalibration, the influence of Gen AI reverberates throughout the entire AI industry. Gen AI represents a departure from traditional AI models by not only processing data but also generating new and innovative solutions independently. The scope of AI integration isn't limited to introducing new algorithms into the existing tech framework in India. It signifies a redefinition of technology itself, with implications for the fundamental algorithms of our daily lives. Imagine a future where content suggestions are finely tuned to individual preferences, healthcare insights offer personalized forecasts, traffic management becomes completely automated, education adapts to unique learning styles, and supply chains optimize in real-time. This transformative force not only changes how we interact with technology but also influences our societal, economic, and cultural experiences, making every new step ahead a pivotal moment in our journey toward a more personalized and anticipatory future.

1.    BFSI

In 2024, our interactions with banking and financial services in India are significantly changing due to the rising influence of artificial intelligence (AI). A recent report by Google and McKinsey highlights that over 80% of Indians now initiate their financial journeys online, indicating a notable shift towards a more digitized banking experience. 

The Banking and Finance sector in India and globally for the most part has been defined by its conservative traditional segmentation. However, in recent years the sector has witnessed a significant transformation driven by a determined shift towards digitalization. While this evolution has ushered in a spectrum of end-to-end benefits, it has also introduced new challenges, particularly in the realms of cybersecurity and data protection.

As the industry adapts to these challenges, AI and Machine Learning (ML) technologies have emerged as crucial allies, fortifying the industry against cyber threats like data breaches and targeted attacks. This technological integration not only safeguards the sector but also ensures its adaptability in navigating the rapidly evolving digital landscape securely.

One noteworthy initiative in this transformational journey is the introduction of "Conversational Payments" on UPI, enabling users to engage in dialogues with AI-powered systems to initiate and complete transactions securely. This innovation has the potential to redefine user experiences by seamlessly integrating payments into everyday conversations. As Gen AI plays a crucial role in conversational interfaces, this integration signifies a broader trend where advanced AI technologies are shaping the very nature of financial interactions.

Recent market reports echo this transformation, indicating a substantial growth trajectory in the global AI in cybersecurity market for BFSI. The projected Compound Annual Growth Rate of 23.3% from 2021 to 2026 underscores the industry's resilience and adaptability in the face of evolving challenges. This momentum sets the stage for imminent changes, including the advent of conversational payments via UPI, as well as enhanced risk analysis for both individual and group-specific insurance plans. These impending developments are poised to redefine the operational landscape of the BFSI sector in the coming year, reflecting India’s commitment to technological advancements and future-ready financial services. 

2.    Retail and E-Commerce

In recent years, artificial intelligence (AI) has become a significant force in the world of e-commerce, reshaping how businesses operate and how customers interact with online platforms. AI-powered recommendations have played a crucial role in simplifying the connection between business owners and their target audiences. Simultaneously, these advancements are streamlining the customer's buying journey by offering personalized product suggestions based on their search history and previous shopping behaviors.

As a sector that is known for its swift adoption of the latest technology, retail and the e-commerce industry has been at the forefront of integrating AI into its operations. One of the latest contributions of Gen AI within this spectrum has been the development of tools that can decode and track consumers' emotional and cognitive reactions. This technology empowers businesses to gain valuable insights into customers’ emotions, allowing for more refined marketing strategies and personalized product recommendations, ultimately enhancing the overall online shopping experience.

Looking ahead, the synergy between AI and e-commerce is set to usher in a more efficient, personalized, and secure digital marketplace. With the help of Gen AI, marketers are introducing innovative technologies that provide product recommendations based on customers’ past purchases. These tools go a step further by suggesting how to pair each product, considering each customer’s personality type, and providing information on versatile product features to enhance the overall customer experience. This symbiotic relationship between AI and e-commerce not only promises to elevate customer experiences but also redefine marketing strategies, aligning them more closely with individual preferences and expectations. 

3.    Smart Cities

In the realm of city administration, a noticeable transition is underway, driven by the integration of artificial intelligence (AI) into our daily operations. This change isn't just an evolution; it's a strategic necessity, especially as India makes strides in its smart city mission.

Gen AI technologies, such as the Integrated Transportation Management System, are being employed, designed to transcend the limitations posed by inadequate infrastructure. These technologies address the complexities associated with road safety in diverse environments, ensuring swift responses to incidents and contributing significantly to the creation of safer roads, even in regions grappling with suboptimal infrastructure.

More such applications, such as the integration of AI-powered chatbots for citizen services, are becoming embedded into the vision of the future of urban planning in India. As we move forward, AI is bound to play a crucial role in further optimizing smart city initiatives, serving as a key component for the Internet of Things (IoT). AI-driven mobile applications will empower citizens to monitor, manage, and access diverse resources efficiently, providing real-time support through virtual assistance and prompt reporting of incidents. Additionally, these advancements are expected to further simplify both citizen services and administrative processes, emphasizing the expanding influence of AI in smart city management. 

4.    Healthcare

According to NASSCOM, the integration of Data and AI into healthcare could contribute $25-$30 billion to India's GDP by 2025.  The report underscores AI's potential to bring significant transformation to healthcare in India, aiding not only in research and development (R&D) but also in making quality and affordable healthcare more accessible, and the delivery of healthcare services more streamlined.

The impact of AI is already evident in remote healthcare services, democratizing access to healthcare among all tiers of the country. The implementation of 24x7 virtually enabled assistance has effectively addressed the longstanding issue of prolonged patient waiting time, a challenge that has come to characterize the Indian healthcare system. While these developments represent the initial strides of AI in the healthcare domain, the year that is to come is expected to witness the deployment of numerous practical applications of smart health technology in India including enhanced diagnostic tools, personalized treatment plans based on AI analysis, and improved patient-doctor communication platforms, further advancing the interplay of traditional industries and evolving technologies. 

5.    Agriculture 

India is first and foremost an agrarian economy, and the heavy reliance on agriculture has been and will continue to be an intrinsic fact about the nation. In the coming future, there will be a deepening of AI- applications within the sector. Contrary to common belief, agriculture is already proving to be a fertile ground for the integration of artificial intelligence, signaling a departure from traditional methods. This collaboration between advanced technology and longstanding agricultural practices brings innovation and efficiency to the sector, marking a significant shift for Indian agriculture.

On the global stage, there is a projected threefold increase in spending on smart agricultural technologies by 2025. In this evolving landscape, India is well-positioned to capitalize on the synergy between its leading sectors—Technology and Agriculture. This collaboration holds immense promise, driving the adoption of AI in agriculture. Notably, AI-enabled drones like Kisan drones are mitigating the longstanding unpredictability in farming. A combination of AI and ML technologies is being employed for pest forecasts and resource allocation. Accurate weather forecasts, precise crop analytics, and efficient crop management are ushering in a new era of reliability in Indian agriculture. With these advancements in view, we can expect to see a widespread application of these technologies, shaping the trajectory of the sector in the years to come, and rendering this sector resilient in the face of unpredictable weather occurrences. 

Over the past several years, artificial Intelligence has been percolating through nearly every aspect of our economy and daily lives. As the technology matures, so too does the scope of its applications and potential for driving enhanced efficiency and productivity. ChatGPT or Generative AI has been one such significant pivot in the AI realm in the past year. As this year gains momentum, we expect that there will be greater sophistication in the technology and its applications will likely traverse unchartered territory across all sectors - contributing to the country’s overall growth and wellbeing. 

Author: Krishna Tripathi, General Manager & Business Unit Head of Artificial Intelligence Platform - NEC Corporation India Pvt ltd