For India, AI is no longer about rolling out technology. As governments and businesses use it to power critical systems, it is being imagined as the next big thing in economic and public infrastructure. 

Notwithstanding the fear of job losses, AI in India can be a tool that touches lives, be it in healthcare, education, agriculture, or public administration. But that will only happen if the right groundwork is laid. Right now, India lacks a comprehensive AI policy. 

"Treating AI as national infrastructure means viewing it in the same way we view roads, power networks, telecommunications, or digital public infrastructure, as a foundational capability that supports economic growth, public service delivery, and national competitiveness," Dhrubabrata Ghosh Dastidar, Managing Director, Protiviti Member Firm for India, told The Secretariat.

“In practical terms, this goes beyond adopting AI within individual organisations. It requires building shared assets such as computer infrastructure, trusted data ecosystems, AI research capabilities, digital public platforms, and skilled talent pools that can be accessed across sectors.”

Computing infrastructure, data management, AI skills, and governance are the key areas on which India must focus.

Beyond Chatbots and Consumer Apps

The discourse surrounding AI is changing. 

The next great opportunity for India may not lie in creating a viral chatbot or image generators but in using AI as an instrument to boost productivity, governance, and economic competitiveness.

Experts say AI can leave a tangible impact on millions of people and create more value than it can as just a piece of technology.

AI diagnostics could provide better healthcare access in vulnerable areas. Quality education might be more possible and obtainable via custom-made learning systems across geographical and linguistic barriers. 

In agriculture, AI can be used to aid in crop planning, weather prediction, and yield optimisation. The Bharat VISTAAR platform is already doing that. Citizen services, speedy redressal of grievances, and well-informed decision-making in public administration could be improved through it. India has already shown how Digital Public Infrastructure can revolutionise the way it works, such as Aadhaar and UPI. 

AI could usher in that next phase of transformation in India, say experts.

Amit Khanna, Partner and Automation Ecosystem Leader at Grant Thornton Bharat, says it is already being utilised in some critical industries. "There are a lot of consumer services or citizen services that we can deliver better, cheaper, and more effectively through AI.” 

He points out its potential in big infrastructure. “Whether it's defence, logistics, transportation, ports, or airports, many operations are driven by AI," he said.

Identifying The Pain Points

Wider adaptation, however, will be easier said than done.

One of the greatest hurdles is computing infrastructure. 

There is great need for powerful computers to run AI development efforts. Access to high-performance computing power is highly targeted and lies only with a relatively small number of organisations. If innovation is to happen beyond large tech giants like Nvidia and OpenAI, it will be crucial to scale up access to computer capacity.

Another difficulty is data. 

India churns out vast information in its growing digital economy, but issues related to data quality, interoperability, accessibility, and governance still linger. “High-quality data is the key ingredient of good AI systems,” says Ghosh Dastidar. Data management will play a significant role in India's AI aspirations.

Another key factor is talent. There is a shortage of personnel with AI skills. Experts say engineers and developers should not be the only ones capable of using it. Such knowledge and skills will become critical to work with, and AI-driven systems should be in place for policymakers, regulators, educators and business leaders.

Governance is the fourth big problem. For widespread adoption of AI, there is a need for stronger accountability, transparency, security, and risk management in organisations and public institutions. Trust will be vital to the public accepting AI-powered systems.

Many in India worry about AI-driven job losses, as globally businesses like Google and Meta Platforms have announced massive job cuts, raising concerns that AI may be changing how jobs are done.

Missing Policy Framework

Concerns about accountability, transparency, and security are escalating as AI enters various sectors, including healthcare, finance, education, and governance.

India has introduced several initiatives like the IndiaAI Mission and affirmed efforts to bolster indigenous AI capabilities. But policies have not kept up with the developments in technology, say experts. 

Accountability for algorithms, cyber security, data governance, responsible use of AI, among other issues, are likely to gain more significance in the coming years.

Khanna feels India needs to have a more robust policy regime to align with the developments and applications of AI at different verticals. "AI is not just an IT product for me. AI is everywhere. We need to have an AI policy. We still don't have a very clear AI policy. I think something the government has to do very quickly is an AI policy."

Building Indigenous Capabilities

At the moment, the world of AI is dominated by America and China, be it Claude, ChatGPT, Gemini, or DeepSeek.

For India, developing autonomous AI skills has become a necessity. This involves boosting research communities, growing the computing ecosystem, and fostering the growth of indigenous AI models and platforms that meet Indian needs.

India’s strength lies in its tech talent pool and thriving startup culture, among other things, and it has successfully launched several ambitious digital transformation initiatives. But experts say these have to be accompanied by adequate investment, improved institutions, and policy guidance.

"I think the government has the right intention, but the pace has to be much faster. I don't think it's a lack of intent. I think it's a lack of pace, lack of resources to some extent, and also policy clarity. These three things are important," Khanna said.

AI's progress in India may lie in how it improves the lives of people. Faster diagnosis at health centres, better learning in classrooms, more efficient public services, and improved productivity for small businesses. 

That will be the litmus test.