Expanding Beyond Borders: The Promise of India-US AI Alliance

India, however, does not tread this path alone. The U.S., the world’s largest economy and another frontrunner in AI, has been a pivotal collaborator and ally of India in the pursuit of a brighter future.

The United States and India have a history of collaboration in AI research and development, highlighted by the U.S.- India Artificial Intelligence (USIAI) Partnership founded in 2021, which maintains focus on AI cooperation, encompassing collaborative research and development, the enhancement of the AI workforce, and specific AI research domains such as healthcare, smart cities, materials, agriculture, energy, and manufacturing.

After years of growing scientific ties, paired with unprecedented geopolitical alignment under the Trump administration, in October 2020, the National Security Commission on AI in the United States suggested that India become the central point for U.S. technological involvement in the Indo-Pacific. A US-India Strategic Tech Alliance with a focus on R&D, innovation, talent flows, and defense and security was also suggested in the NSCAI report.

India and the US spent the majority of the Cold War alienated from one another. Even as their ties began warming after the turn of the 21st century under the governments of George W. Bush and Atal Bihari Vajpayee, observers have frequently commented on the increasing strength of bilateral cooperation while noting its relatively limited presence multilaterally. Notably, disagreements have periodically arisen between the United States and India at the UN General Assembly (UNGA). As per an account, Australia and Japan have voted with the US approximately 80% of the time on major UNGA votes since the year 2000; India, on the other hand, has voted with the US only 20% of the time.

However, in recent years, the strategic partnership between the United States and India has changed, moving from a bilateral to a multilateral framework and encompassing a wider range of issues. These issues include: financing infrastructure; manufacturing and distributing COVID-19 vaccines; humanitarian aid and disaster relief; peacekeeping and education; space and cyber security; combating extremism and terrorism; ocean governance; and promoting an open, liberated Indo-Pacific and rules-based order.

The spectrum of India-US ties is expanding, offering increased opportunities for alignment in the next decade. There are five crucial areas that call for attention: emerging technology and national security, defense cooperation, aligning bilateral with multilateral priorities, counterterrorism, and trade. Other promising areas include education and outer space. Focusing on these sectors is expected to shape India-US relations, demanding unprecedented coordination not just bilaterally but also with regional and global stakeholders.

The formal launch of iCET, the U.S.-India initiative on Critical and Emerging Technology, in 2023 by the national security advisers of the two countries, is without a doubt the best-structured bet between India and the United States, designed to deliver a range of deals. Within a year's time, the exchange between India and U.S. officials has significantly deepened and broadened. It encompasses political, administrative, corporate, and strategic dimensions in and around the iCET. This includes cooperation on critical and emerging technologies in areas including artificial intelligence, quantum computing, semiconductors and wireless telecommunication.

Insiders hint at a significant development: U.S. corporations are contemplating shipping hypercomputers and AI clusters to India. While an official announcement remains uncertain, India faces a pressing need to acquire advanced computing capabilities. The nation's computing history, from its first supercomputer in 1990 to the recent installation of AIRAWAT in 2023 with a peak capacity of 13 petaflops, underscores the urgency to develop a more robust strategy for AI computing. The imperative lies in AI clusters surpassing 30 or 40 petaflops, regardless of the developing company.

However, these clusters necessitate comprehensive solutions, including land, maintenance, and governance models enabling startups and MSMEs to actively contribute to field-defining innovations. While India boasts the necessary skills, a deficiency in computing power, a key aspect of the iCET, needs substantial development.

Importantly, enhancing computing power in India not only brings immediate benefits but also lays the foundation for a seamless technology corridor between Silicon Valley and India’s tech hubs—Bengaluru, Pune, Hyderabad, and Gurgaon. This strategic move is poised to attract top-tier talent, as experts often emphasize that talent gravitates toward robust computing capabilities. To stay at the forefront of the AI race, collaborative efforts between India and the United States are imperative—necessitating a shared commitment to computing advancements.

On Wednesday, Satya Nadella CEO of Microsoft at an event in Mumbai highlighted the need for India and the US to make collaborative efforts to lay down regulations on AI for it to be diffused to every part of the world. "It’s imperative especially for India and the US to be able to cooperate on what are the norms and regulations (for AI), instead of fracturing them,” said Nadella.

That said, India’s tech talent emigration is arguably one of the most underestimated resources for a mutually beneficial partnership on AI between the two countries. The migration of Indian talent to the United States represents a mutually beneficial scenario for both nations, holding the potential to have a great impact on the advancement of AI aspirations.

India stands as a reservoir of immense technological talent, yielding an impressive sevenfold surplus of bachelor's level engineering graduates compared to the United States, and an almost twofold surplus at the master's level. Despite this prolific output, the nation faces challenges in terms of stagnant job growth, deficient infrastructural facilities, and a higher education sector in need of substantial improvement. These hurdles contribute to an environment ill-suited for nurturing talent at the doctoral level and providing subsequent employment opportunities.

Consequently, Indian students frequently opt to pursue advanced degrees abroad, with the United States being their top choice. In the 2022-23 academic year, India surpassedChina to become the largest source of international graduate students in the US, with a record-breaking 268,923 enrollments.

When a nation experiences the departure of its finest minds, concerns naturally arise about the phenomenon known as brain drain. Countries like South Korea and Taiwan have responded to this challenge with proactive measures, such as the Brain Return 500 Project and the Talent Activation Program designed to facilitate the return migration of their most educated and skilled citizens.

The Indian government, however, does not appear to consider itself as suffering from the aforementioned problem and has done little to put forward initiatives to counter skilled migration. This can be attributed to the greater benefits of talent exodus which include remittances, investments, and knowledge-sharing.

Navigating the intricate challenge of retaining India's formidable tech talent requires a nuanced approach, given the formidable financial constraints hindering the development of essential academic and technological infrastructures.

The complexity deepens when considering the oversupply in the market and the financial limitations that impede the domestic retention of highly skilled AI professionals. Yet, amid these formidable challenges, fostering a robust synergy between India and the U.S., perhaps through initiatives such as the establishment of U.S. university campuses on Indian soil, unveils promising prospects.

The United States stands poised to reap substantial benefits from the influx of Indian tech talent, an observation underscored by the NSCAI report. The report accentuates the strategic and economic advantages accruing to nations adept at both attracting and retaining highly skilled individuals. Within the American landscape, Indian talent plays an integral role, constituting 11 percent of founders in the top 50 AI startups.

These enterprises not only contribute significantly to the U.S. economy but also serve to fortify the bilateral tech relationship between India and the U.S. through avenues like outsourcing, tech transfers, or investment opportunities, therefore further bolstering the tech relationship between the two nations.

India's burgeoning status as a technological powerhouse positions the nation on the precipice of becoming the globe's foremost AI user by the end of this decade. From streamlining education to aiding in social protection programs, AI has the potential to deeply penetrate Indian society, effecting broad and meaningful change domestically and beyond.

(Sanskriti Bimal is a US-based management consultant, with an interest in Artificial Intelligence, financial services and driving humanity forward. Views expressed are personal.)