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Artificial Intelligence (AI) doesn’t sleep, doesn’t take coffee breaks, and doesn’t call in sick – no wonder it is the most talked-about employee of the decade. Remember when AI was just a sci-fi fantasy! Well, now it’s writing scripts and business reports. This article will walk you through the overall AI landscape and several initiatives taken to leverage AI for economic development and technological advancement.
AI Action Summit 2025
The AI Action Summit was held in Paris on February 11, 2025 co-chaired by Indian Prime Minister Narendra Modi and French President Emmanuel Macron. This summit brought the global leaders, policy makers, and industry leaders together, to discuss the future outlook of AI. Macron and Modi advocated for common safety regulations, contrasting with the US and the UK’s preference for minimal regulation to accelerate innovation. Discussions highlighted on AI’s significant environmental footprint and building inclusive AI policies.
Global AI Sector Insights
Leading US technology firms including Amazon, Microsoft, Alphabet and Meta are collectively planning to invest over $300 billion in AI infrastructure, a significant rise from the $230 billion invested in 2024. The primary focus will remain on enhancing data centers and develop specialized chips to support advanced AI models. As of 2024, the global AI market was valued at approximately $184 billion, reflecting a significant increase from the previous year. The global AI market is expected to grow by 27.67% between 2025 and 2030, reaching a market volume of approximately $826.70 billion by 2030.
Indian AI Sector Insights
In India, the AI market reached around $6.3 billion in 2024, with machine learning being the largest segment at $2.8 billion. As of 2025, India’s AI industry is projected to reach $8.3 billion, driven by increased adoption across various sectors such as healthcare, agriculture, and urban planning. AI is notably expected to contribute around $500 billion to India’s GDP by 2030. The generative AI could increase productivity in India’s IT industry by 43% to 45% over the next five years, in a recent survey by EY India. In 2024, Indian start-ups secured $560 million in AI funding, reflecting a 125% growth compared to 2023.
India’s AI Policy Focus
In the Union budget 2025-26, the Union government has announced several initiatives to bolster India’ AI capabilities. The government has allocated ₹500 crore to establish Centre of Excellence dedicated to integrate AI into education sector, to prepare youth for a digital future. The India AI mission has been increased to ₹2,000 crore, up from ₹173 crore in the previous fiscal year, underscoring the government’s commitment to advancing AI research and development and applications spanning various sectors. The government has proposed “Deep tech Fund of Funds” amounting ₹20,000 crore (US$2.3 billion), designed to foster innovation and bring cutting-edge ideas into tangible outcomes.
Challenges in AI
AI has immense potential however it’s challenges must not be ignored.
Environmental Impact of AI Systems: AI consumes substantial amounts of energy (in watts) due to their heavy computational power, particularly during the training phase. The significant energy required for powering AI systems often leads to considerable GHG (greenhouse gas) emissions, if sourced from non-renewable plants.
Ethical and Social Inequality: If only wealthy nations get access to cutting-edge AI, smaller economies and underprivileged communities may be left behind. Ensuring equitable access to all will ensure sustainability in the long run.
Data Privacy: Businesses that gather large amounts of data must ensure that this information is protected and does not lead to any financial losses.
Skill Gaps: Implementing AI requires skilled personnel who understands both technology and sustainability principles. Businesses may find challenging to hire or train employees with such expertise. Workers need constant upskilling to contribute to a symbiotic relationship with AI.
Lifecycle Costs: AI models need continuous nurturing that involves periodic updates, fine-tuning to new data and conditions, and achieving sustainability certifications such as ISO 14000 or LEED. This adds up to a project’s financial burden due to heavy costs.
Conclusion
India’s AI sector is on an upward trajectory, supported by several government initiatives, rising investments, and a rapidly expanding market. India is positioning itself as a global AI powerhouse. However, challenges such as high energy consumption, data privacy concerns, and skill gaps must be addressed to ensure sustainable growth. With strategic investments, ethical AI policies and a focus on inclusivity, India has the potential to not only lead AI advancements but also set a global benchmark for a responsible AI development.
These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.
I rhink author has attempted well to give an insight to AI.