By Srinath Sridharan
Amid the escalating global race for AI dominance, in navigating the multifaceted determinants of this race, a stark reality emerges: the triumph of AI depends significantly on high-quality human talent.
Per Nasscom’s State of Data Science and AI Skills report, India boasts 16% of the global AI talent pool and hosts one of the most substantial annual STEM supplies of 2.25 million graduates. However, the unsaid critical consideration pertains to the quality of such output. This is underscored by the challenges faced by tech entities (many of them Nasscom members), as they grapple with the task of transforming a significant portion of our STEM graduates into fully work-ready individuals.
The relentless evolution of new technologies presents an ongoing challenge for academia to stay abreast of the latest trends. Regrettably, a substantial portion of Indian academia languishes in obsolescence within the STEM domain, offering only a sparse glimpse of cutting-edge work. This predicament represents nothing short of an academic injustice to our youth in a nation teeming with aspiring minds eager for contemporary knowledge.
India possesses several inherent advantages, including a substantial young population. However, to further bolster its standing in the quest for AI sovereignty, the nation must embark on the creation of numerous university labs dedicated to AI research. Additionally, India boasts an abundance of data centers and pioneering digital public pipelines with accessible datasets. The unique complexity of being multilingual, with citizens seamlessly integrating two or three languages as seen in the case of Hinglish, sets India apart, offering a distinctive cultural-linguistic nuance that is rare on the global stage.
However, policymakers must act swiftly to actualise these prospects: expediting the transition of AI from the media dias to research labs and then to industry, fostering collaborations across diverse sectors, and pinpointing market-driven R&D challenges. Additionally, there is a crucial need to establish publicly accessible curated catalogues encompassing AI datasets, testbeds, educational resources, and pertinent metadata, thus creating a valuable resource for the wider community.
Local industries will play a pivotal role in the commercialisation of AI, drawing investors based on a combination of cutting-edge talent and favourable investment regulations. While global tech firms may leverage India for its cost-effective talent and backend development, it is crucial to acknowledge that their interest is driven by practical commercial advantages. India needs to recognise this reality and take decisive steps to cultivate its ecosystem, not only to retain AI talent but also to propel domestic entrepreneurs onto the global stage. Without prompt action, there’s a looming risk of losing this race as adept individuals may gravitate towards global ecosystems where their AI proficiency is both respected and rewarded.
Simultaneously, the global macroeconomic stress has cast a shadow over business for tech organisations. This is already evident in the current tech sector hiring slowdown globally. The only exception is evident in the field of AI and related domains, where recruitment has surged to unprecedented levels. This signifies not only a shift in technology roles but also a simultaneous adaptation to economic uncertainties, with AI maintaining its stronghold as a key driver of innovation.
The setbacks faced by Indian tech majors, exemplified by Infosys losing a pivotal AI-focused global client, sharply highlight the industry’s shifting dynamics. The severed deal, once valued at $1.5 billion, accentuates the urgent need for these companies to adapt to changing client priorities centred on AI solutions for digital transformation. While collaborations like Nvidia, RIL, and TCS pursuing generative AI solutions offer a glimmer of promise, the looming question persists: Can Indian IT majors swiftly recalibrate their AI offerings with the necessary skilled talent?
The US currently maintains a competitive edge over the rest of the world in various aspects of the technology talent landscape. It excels in foundational research, hosting 13 out of the top 15 leading AI research institutions. Additionally, the US takes the lead in fostering AI unicorns. Simultaneously, China is making substantial investments in AI development, leading in global patent applications and journal citations. The same is the urgency for Germany and the UK.
However, the US possesses a distinct advantage in its unparalleled ability to attract talent, a feat that is challenging for other nations to replicate. Nearly half of the master’s and doctorate degrees in STEM fields conferred by US universities are earned by foreign students, with many choosing to remain in the country post-graduation. A recent study highlights that 60% of the world’s premier AI researchers are affiliated with US institutions.
Most governments comprehend the transformative potential of AI, recognising its capacity to improve lives and tackle global challenges. Simultaneously, there’s an acknowledgement of the serious risks posed by AI to civil rights, democracy, market frameworks built by nations, national security, and society at large. This sets the stage for a policy dichotomy. In navigating the relatively fluid AI space, governments are compelled to play a dual role—harnessing the boundless opportunities presented by AI’s positives while concurrently addressing and mitigating the emerging risks associated with it.
Up to this point, the predominant focus across the global political spectrum has been on the risks, leading to a resounding call for stringent regulations. Amidst the facade of collaborative global efforts, nations may pretend to work hand in hand, but make no mistake—when it comes to the AI race, the winner ruthlessly claims it all.
The pertinent question arises: Where does India stand in this global race?
The author is a policy researcher and corporate advisor. Views expressed are personal.