According to a report, India is among the top ten countries in Artificial Intelligence (AI) preparedness and there is immense potential for transformation in the public sector through AI in the country.
“Readiness” for AI refers to an economy’s ability to effectively implement and integrate AI. The Boston Consulting Group (BCG) report, based on data from 73 economies, showed that India ranked second globally in AI experts and third in research publications, with a strong base in AI-related patents.
On the other hand, more than 70 per cent of the economies studied scored below average in key areas such as ecosystem participation, skills and research and development.
“India’s journey to becoming an AI contender underlines the country’s emphasis on integrating technology into high-priority sectors such as agriculture, education and healthcare. As one of the top 10 countries in AI readiness, India is It holds immense potential for transformation in the public sector.” ” said Saibal Chakraborty, India Leader, Technology and Digital Advantage Practice, BCG.
“With a strong base in AI-related patents, India ranks second globally in AI experts and third in research publications,” he said.
The report further shows that AI exposure spans across several key sectors in India. Business services contribute 16 percent of GDP and have significant AI exposure, leading to potential improvements in administrative efficiency for government functions.
Retail and wholesale make up 10 percent of GDP, where AI can streamline public distribution and supply chain management, reducing wastage. Public services represent 6 percent of GDP, with opportunities for AI to enhance service delivery and emergency response.
Agriculture, forestry and fisheries contribute 17 percent to GDP and can use AI in precision farming and risk assessment to boost productivity.
The construction sector, 8 percent of GDP, can use AI for infrastructure planning and asset maintenance. Arts, entertainment and personal services, also at 8 percent, could benefit from AI in managing public facilities.
“Realizing this potential requires a multi-pronged approach: strengthening infrastructure, enhancing AI research capabilities, and expanding workforce training. With efforts to expand AI education in rural areas and promote public “Investment in research centres, cloud capabilities and data systems is important,” Chakraborty said.
The report also calls for a regulatory framework to address the ethical use of AI, monitor bias, and ensure responsible adoption of the technology.
Aparna Bhardwaj, managing director of BCG, “urged policymakers to act decisively to prepare for an AI-driven world”. This can be achieved by “enhancing resilience, productivity, job creation, modernization and competitiveness”.
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