Harnessing the future of AI in India

The size of the AI sector in India is difficult to determine, given that a lot of AI applications are in intermediary phases of production. Globally, one popular means of measuring the size of AI sectors is by adding up private sector investment in AI start-ups. According to one estimate, total AI funding worldwide has increased from $862 million in 2012 to $6.4 billion in 2017.1 The Indian AI sector, too, has seen growth in this period, with a total of $150 million invested in more than 400 companies over the past five years.2 Most of these investments have come in the last two years, when investment nearly doubled from $44 million in 2016 to $77 million in 2017.3 In India, too, the government is spearheading investments in AI and other emerging technologies. In the latest budget, the government set aside $480 million for investment into emerging technologies including AI. This commitment could help put India on the map, as this outlay compares favorably to those of Australia, Canada, and the European Union.5