India’s Strategic Advantage in the Global AI Landscape

Reevaluating the Global AI Race

The global race in artificial intelligence often centers around those who possess the largest models, most advanced chips, and biggest data centers. However, Ashishkumar Chauhan, CEO of the National Stock Exchange of India, argues that these metrics might not define who ultimately benefits economically. Speaking at Newsweek’s AI Impact Forum, he emphasized that countries can achieve success by being the best users of AI, not just its inventors.

India’s Potential in the AI Realm

India’s potential lies in applying AI across various business sectors, services, and everyday devices, even if the underlying technology originates elsewhere. A warning from Bernstein, a global equity research firm, suggests India risks becoming a “permanent customer” of AI models from the US or China. However, Chauhan reflects on India’s historical approach to technology, citing how Indian workers mastered foreign technologies, eventually building a global industry focused on solving international business problems.

Open Models and Economic Opportunities

Chauhan sees opportunity with open models, which can reduce experimentation costs and allow smaller systems to be used in phones, vehicles, appliances, and industrial equipment. He predicts that the economic value will shift towards those who apply AI practically and affordably. India’s extensive workforce, experienced in supporting systems for global companies, might give the nation a competitive edge in leveraging AI.

Smaller Models and Customization

He envisions a future where AI processing moves onto phones and other devices as systems become cheaper and easier to customize. While large models serve demanding applications, smaller systems can efficiently handle routine tasks. Those nations effectively utilizing both types of models may reap greater benefits.

Innovation Beyond R&D Spending

Chauhan challenges the conventional measures of innovation, emphasizing that accounting figures often fail to demonstrate where technical work happens. Indian engineers often conduct R&D for international companies, contributing significantly even when intellectual property is officially recorded elsewhere.

Entrepreneurship and AI Deployment

Entrepreneurship in India operates on a bottom-up approach, responding to emerging opportunities. Innovations need to remain cost-effective yet world-class. Chauhan sees infrastructure—and efforts like expanding semiconductor manufacturing and renewable energy—as crucial for broader AI deployment.

“Who is the richest person on the earth? The person who spends less than his income,” Chauhan advises, urging AI entrepreneurs to manage expenses wisely.

Open vs. Closed Models

Chauhan remains skeptical of closed-model companies, believing open-source systems will compete effectively by allowing developers the freedom to adapt and modify technology. A diverse mix of models suits India’s strengths and may lead to creating successful companies without dominating in models, chips, and applications simultaneously.

Upcoming AI Discussion on Customer Experience

The next phase of Newsweek’s AI discussions focuses on customer experience, specifically the role of AI in enhancing personalization and engagement. Industry leaders will explore these topics on July 30, highlighting strategies to improve service and data management. Registration for the webinar is available online.