Generative AI could contribute $1.2 to $1.5 trillion to India’s GDP over the next seven years (EY report). Generative AI has the potential to speed up India’s digital transformation.

The most promising sectors that would adopt Gen AI are the services (IT, legal, consulting, outsourcing, rental machinery and equipment and others), financial services, education, retail and healthcare.

Such adoption would result into enhanced productivity, operational efficiency and personalized engagement with customers.

In 2029-30 alone, generative AI could add $359-438 billion to India’s GDP. It indicates an increase of 5.9-7.2 per cent above the baseline GDP.

These are early days. There are challenges while adopting AI — skill gap, clear use cases, risks of data privacy.

AI-first approach is becoming acceptable. It leads to digital transformation.

AI regulation in the initial stages should be light touch. It should be responsive. There has to be a balance between innovation and risk management. There should be regulatory sandboxes. AI-generated content could be watermarked. There should be standards for accountability to build trust in the AI systems.

AI-systems could be offered as public goods. Conducive environment must be provided — 5G, data centers, access to chip, AI specific compute, access to talent, public funding of R&D.