Despite early advancements in artificial intelligence (AI) by the United States and China, India is well-positioned to shape the future of AI innovation, scalability, and accessibility, according to Amitabh Kant, India’s G20 Sherpa and former NITI Aayog CEO. In an interview with YourStory Founder and CEO Shradha Sharma, Kant emphasized that the AI race is still in its early stages and that technological revolutions are not always won by first movers.
India’s Opportunity in the AI Revolution
Since late 2022, when OpenAI introduced ChatGPT, the AI landscape has been largely dominated by US-based companies that have leveraged massive investments and high-performance processors, primarily manufactured by Nvidia. Many industry experts believed that developing competitive AI models required significant financial resources and access to cutting-edge hardware—a challenge for countries like India.
However, this notion was recently challenged when China-based DeepSeek announced that it had developed an AI chatbot comparable to ChatGPT at a fraction of the cost and without access to US-made processors. This development underscores a crucial shift in AI innovation—one where efficient, cost-effective solutions can compete with resource-heavy models.
India’s AI Potential: Scale, Innovation, and Accessibility
Amitabh Kant believes that India’s real strength lies in its ability to scale and democratize AI. While the US and China have taken the lead in foundational AI technologies, India has the potential to:
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Leverage its vast data ecosystem to develop contextually relevant AI models tailored to Indian consumers.
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Foster AI research and development through initiatives led by the government, startups, and academic institutions.
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Create cost-effective AI solutions that cater to emerging markets, making AI accessible beyond large corporations.
“India is a country of scale and frugality—two factors that will play a key role in AI adoption and impact,” said Kant. By prioritizing innovation-driven, cost-effective AI models, India can bridge the gap between AI development and widespread implementation.
The Road Ahead: India’s AI Strategy
India has already taken major steps toward AI adoption, with initiatives such as:
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The National AI Strategy, spearheaded by NITI Aayog, promoting AI research and innovation.
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Government-backed AI projects in healthcare, agriculture, and governance, aimed at improving public services.
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A thriving startup ecosystem, where Indian companies are working on AI-driven solutions for businesses and consumers.
Conclusion
While the US and China may have taken an early lead in AI, Amitabh Kant believes that India has all the right ingredients to be a global AI powerhouse. By focusing on scalability, affordability, and innovation, India can democratize AI and make it a tool for national growth and economic transformation.
The AI race is just beginning, and India is ready to lead the charge.