Gen-AI-Report_v8

THE RISE
OF INDIA’S
GENAI
BRIGADE
REPORT, 2024
© INC42 MEDIA | NOT FOR DISTRIBUTION / 2
Table Of
Contents
India’s Digital Economy: An Overview Decoding Generative AI Startup Ecosystem
In India
State Of India’s Startup Economy
India’s GenAI Landscape
Evolution Of AI
GenAI Funding Trends
Decoding The World Of GenAI Investors Actively Backing AI Startups
A Comparative Look At Top Generative AI Models
India’s GenAI Startup Investor Survey 2024
The GenAI Value Chain
GenAI Market Opportunity In India Growth Drivers
AI & Policy Key Challenges
Generative AI In Business Methodology
Decoding The AI Strategy Of India's Top-Tier Listed Enterprises Bibliography
India To Have 900 Mn+ Active Internet Users By 2025

By 2025, 56% of new internet users in India will come from rural areas, with females making up 65% of this influx
% Growth
2023 2025 (E) (Absolute)
Smartphone Internet Penetration 5G Enabled Indian

1 Bn+ 1.1 Bn+ 10% (Active Users) Cities/Towns
Users
55% 7.7K+
Internet
Users
821 Mn+ 900 Mn+ 10%
Urban Internet Penetration Number Of Male
(Active Users) Internet Users
86% 443 Mn+

Urban internet
Users 378 Mn+ 396 Mn+ 5%
Cost Of 1 GB Number Of Female

Internet Internet Users
Rural internet
Users 442 Mn+ 504 Mn+ 14% $0.16 378 Mn
Source: IAMAI, Inc42 Analysis

The State Of Indian Startup Economy
3rd 118 70K+ $154 Bn+

Largest Startup Indian Unicorns, Number Of Tech Total Funding
Ecosystem In Only Behind The Startups Launched Raised Since 2014
The World United States &
China
$7 Bn+ $38 Bn+ $107 Bn+

Total Startup Total Startup Total Startup
Investment At Investment At Investment At
Seed Stage Growth Stage Late Stage
Source: Inc42
Note: Based on Indian startup funding deals recorded between January 2024 and September 2024.
The Evolution Of Artificial Intelligence

1990s: The Rise Of 2000s: The Dawn Of 2010s: Deep Learning & 2020s: Generative AI &
ML & Expert Systems Data-Driven AI AI Renaissance Multimodal Learning
Rapid rise in the In 2001, Google began AlexNet, a groundbreaking Convolutional Neural Open AI launched ChatGPT-3 for the public
development and using statistical Network (CNN) introduced in 2012, paved the way in November 2022.
industrial applications machine learning to for modern deep learning models in computer
of machine learning identify spam and vision To capitalise on the booming generative AI
algorithms enhance spelling market, Google introduced its powerful LLM,
suggestions for users' In 2011, IBM Watson triumphed over Jeopardy! Bard, in 2023
The mid-1990s web searches champions Brad Rutter and Ken Jennings.
marked significant Microsoft invested $10 Bn in OpenAI to
progress in natural In 2002, the launch of Apple acquired Siri, a virtual assistant utilising AI further solidify their partnership
language Roomba, the robotic for speech recognition and natural language
processing (NLP) vacuum cleaner, processing (NLP). IMeta launched LLaMA in 2022 — an open
introduced AI into source generative AI model for developers.
In 1994, human-like
everyday household In 2015, DeepMind's AI learned to play Atari games
spontaneous speech
tasks at a human-expert level, using only the game's LangChain was launched as an open-source
recognition was
visuals (pixels) and score as input framework designed to simplify the process
achieved
The 2007 DARPA Urban of building applications powered by LLMs
Challenge The paper "Attention Is All You Need" by Google
IBM's Deep Blue
greatly accelerated researchers introduced the Transformer Rabbit Inc. introduced Large Action Model
defeated chess
grandmaster Garry advancements in architecture, revolutionising how neural networks (LAM) based device "R1" capable of using AI
Kasparov in 1997 autonomous driving process information agents to plan and executive tasks like trip
planning, cab booking etc
Source: MIT, Inc42 Analysis

The 2020s: Where AI Takes The Leap From Science Fiction To Fact
Theseus: A small robotic mouse TD-Gammon: This Artificial intelligence with

that could navigate a simple software learned to play language and image
maze and remember its course. backgammon at a high recognition , capabilities that
level, just below the top are comparable to those of
1950 human players. humans
1970 1990 2010 2030 2050

First digital
computers
1940 1960 1980 2000 2020 2040 2060
Perceptron Mark I: Regarded as the AlexNet: This was a pivotal early "deep ChatGPT: The release of
first artificial neural learning" system - a neural network ChatGPT 3 in November
network, it could visually with many layers - that could recognize 2022 laid the way for the
distinguish cards marked on the left images of objects such as dogs and GenAi bull run that followed.
side from those marked on the right. cars at near-human level.
Source: Our World In Data, Inc42 Analysis

Understanding Generative Artificial Intelligence (GenAI)
What Is Generative Artificial Intelligence (GenAI)?

Artificial
Generative AI is a specialised branch of deep learning that Intelligence
utilises various models, including Large Language Models
Machine
(LLMs) and Generative Adversarial Networks (GANs), to create Learning
new and original content that closely resembles or is inspired
by its training data. GenAI can generate content across multiple Deep
Learning
formats, such as text, images, music, and code.
Popular Types Of GenAI Models

Generative Adversarial Networks (GANs)
Transformer-based Models
Generative Al
Recurrent Neural Networks (RNNs)
Variational Autoencoders (VAEs)
Deep Reinforcement Learning
Autoregressive Models
Source: Inc42, Michael Miao (Image Credit)
Understanding Generative Artificial Intelligence (GenAI)

Model Selection
Data Collection & Data Exploration Feature Training & Evaluation &
& Architecture Fine-Tuning Deployment
Preprocessing & Analysis Engineering Validation Analysis
Design
Data Collection &

Preprocessing
Data Exploration
& Analysis
Feature
Engineering Model Selection
& Architecture
Design
Training &
Validation
Evaluation &
Analysis
Fine-Tuning
Deployment
Model Selection
Data Collection & Data Exploration Feature Training & Evaluation &
& Architecture Fine-Tuning Deployment
Preprocessing & Analysis Engineering Validation Analysis
Design
Source: Inc42
How Artificial Intelligence Is Shaping The Fifth Industrial Revolution
120 YEARS
30 YEARS
20 YEARS
70 YEARS
Machinery, Computer and
Human-cyber-
Water power, Automation
physical systems
Steam power (HCPS)
Mass production,
1780 1970
Internet and 2020
Assembly line, cyber-physical
Electricity systems
The fifth industrial

revolution will be
significantly influenced
by tech like artificial
1900 2000 intelligence, quantum
computing, and
blockchain.
Source: Research paper by Xiao Chen (Technical University of Denmark), Inc42 Analysis
The Global Artificial Intelligence Business Ecosystem
Hardware
Provide hardware
components
Infrastructure
Manage data processing

and storage
Software
Develop Al algorithms
and applications
End User Business & Consumer
Source: Inc42
A Comparative Look At Top Generative AI Models
GenAI Models Method Strengths Weaknesses Applications
Two competing neural networks: Training can be unstable, Image/video generation,

Generative Adversarial Can create highly realistic
generator (creates data) and discriminator requires careful balancing creative content creation,
Networks (GANs) and creative data
(evaluates real vs. generated) of networks data augmentation
Powerful for complex Machine translation, text

Transformer-based Encode and decode information High computational cost,
language tasks, good at summarization, question
Models using attention mechanism limited interpretability
handling long sequences answering
Speech recognition, text

Recurrent Neural Process sequential data, Effective for tasks with Can struggle with
generation, sentiment
Networks (RNNs) maintaining an internal memory sequential dependencies long-term dependencies
analysis
Captures underlying Information loss during

Variational Encode data into a latent space Anomaly detection,
structure of data, useful encoding/decoding, less
Autoencoders (VAEs) and reconstruct it image compression
for anomaly detection efficient for complex data
Achieves superhuman Requires defining

Deep Reinforcement Agent interacts with environment, Robotics, game playing,
performance in complex rewards and environment,
Learning learns through trial and error self-driving cars
games slow learning process
Predict next element in a sequence Can be slow for long Text generation, music
Autoregressive Efficient for generating
based on previous elements, one sequences, prone to composition, language
Models coherent text
element at a time errors modeling
Source: Inc42 Analysis, Secondary Sources
Note: This table does not include an exhaustive list of applications and model types.
The Generative Artificial Intelligence (GenAI) Value Chain

Hardware & Cloud Platforms
Computer hardware/infrastructure
providers such as — CPU, GPU, CSP etc
Foundation Model
Developers of API and foundation GenAI
models on which applications are built
Infrastructure Layer
Model Development & Fine Tuning

Tools and software used in development
FIXIE and fine tuning LLM models and DBs
Application Layer (Text/Image/Code/Audio & Video)
Source: Inc42
Note: This representation includes both international and domestic organisations
This is not an exhaustive list of all the players in the ecosystem
The Future Of GenAI In India: A $17 Bn+ Market Opportunity Awaits
20 Rising Demand For AI-Powered Consumer Devices: The Indian

consumer electronics market is seeing a strong surge in AI-powered
devices, including smart speakers, home automation gadgets, and
autonomous vehicles. This upward trend is expected to continue,
Market Opportunity ($ Bn)
15 17
driving increased demand for AI software and hardware across India.
10.6x
Dynamic Startup Ecosystem: India now ranks seventh globally for new
AI startups, with over 338 newly funded ventures. Most Indian AI
10 startups focus on applying GenAI technologies in business and
consumer application, rather than building infrastructure. Since 2020,
these startups have raised over $1.2 Bn, illustrating a vibrant growth
trajectory.
5
Expanding AI Talent Pool: Upskilling in AI is increasingly popular in

India, with everyone from C-suite executives to entry-level employees
1.6 gaining awareness of AI applications in their work. Recent reports also
0
highlight Bengaluru as home to the world’s second-largest AI talent
2024 2030 pool, underscoring India’s rapid development in AI expertise.

Note: The market size indicated here represents the revenue potential for companies providing AI/GenAI-related products and services.
This estimate is calculated based on India's proportional share of global software product sales for the years 2023 and 2030.
Artificial Intelligence Takes Centre Stage In Indian Policy Push
Initiatives Description Key Objectives & Impact
IndiaAI Mission The mission is guided by the principle of "AI for All", Developing AI solutions for societal needs in areas like healthcare,
emphasising the technology's potential to enhance the education, agriculture, and smart cities.
quality of life for all Indian citizens whilst positioning India as Establishing AI research, development, and innovation centers
an AI powerhouse on the global stage. In March 2024, the across the country.
Indian government approved over INR 10.5K Cr for this Addressing ethical concerns and developing responsible AI
mission. frameworks.
Launch of BharatGen, government funded multimodal LLM which
is being developed by IIT Bombay.
IndiaAI Compute As one of the pillars of IndiaAI Mission. It aims to provide Establish a cutting-edge AI compute infrastructure with 10,000+
Capacity researchers, startups, and industry players with access to Graphics Processing Units (GPUs) built through collaborative
high-performance computing resources necessary for AI public-private collaborations.
development and innovation. An innovative AI Marketplace that provides AI as a service and
pre-trained models, giving AI innovators easy access to key re-
sources.
To develop indigenous AI solutions for India's unique needs.
Source: PIB, IndiaAI Mission, Inc42 Analysis

Note: This is not an exhaustive list of all the government initiatives
Initiatives Description Key Objectives & Impact
AI For Agriculture A programme launched by the Ministry of Agriculture To leverage AI for improving agricultural productivity and farmers'
and Farmers Welfare to promote AI adoption in income.
agriculture, through partnerships with industry, Kisan e-Mitra: An AI-powered chatbot assisting farmers with PM
academia, and government. Kisan Samman Nidhi scheme queries, supporting multiple
languages.
Established 713+ Krishi Vigyan Kendras and 684+ Agricultural
Technology Management Agencies to disseminate farm
technologies.
IndiaAI FutureSkills IndiaAI FutureSkills is an initiative aimed at developing Removing barriers to AI education by expanding undergraduate,
AI-related skills across India's workforce. master's, and Ph.D. courses, and establishing Data and AI Labs in
Tier 2 and 3 cities.
Fostering industry-academia partnerships to align skills training with
market demands
Enabling continuous learning in AI through dedicated platforms and
resources
Source: PIB, IndiaAI Mission, Inc42 Analysis

Note: This is not an exhaustive list of all the government initiatives
Generative AI
In Business
Retrieval Augmented Generation (RAG): Turbocharging Business With Intelligent

Information Retrieval
RAG: Retrieval-augmented generation (RAG) is an AI framework for improving the
quality of LLM-generated responses by grounding the model on external sources of
knowledge to supplement the LLM’s internal representation of information.
Best Practices Of Using RAG In Business
Domain Specific Knowledge: Fine tune the RAG model with domain-specific
information to better handle business-specific terms and use cases.
Maintain Data Quality: Ensure RAG system data is accurate, relevant, and
up-to-date. Regular data updates and a high-quality knowledge base are crucial for
reliable assessments.
Employee Upskilling: Provide employees with training on using RAG systems

effectively, including navigating the technology and integrating its outputs into daily
work.
Integration With Existing Workflow: Integrate RAG into your existing business
processes, whether it’s customer support, sales, decision-making, or content
generation.
Retrieval Augmented Generation (RAG): Turbocharging Business With Intelligent

Information Retrieval
Using RAG Not Using RAG
(Retrieval-Augmented Generation) (Traditional Al Approach)
Access to vast, up-to-date Limited to training data,

enterprise knowledge Knowledge potentially outdated
Access
Higher accuracy with real-time Potential for outdated or

data retrieval Information incorrect information
Accuracy
Quickly adapts to new Requires full model retraining

information without retraining Adaptability for new information
Easily scalable with growing Limited by model size

knowledge bases Scalability and training data
Update knowledge base without Regular model updates

model changes Maintenance and retraining required

Key Advantages Of Incorporating Retrieval-Augmented Generation (RAG) In Business
Advantage Brief Impact on Business
Improved Accurate responses reduce errors and

Accuracy inaccuracies. Increased customer trust and loyalty.
Enhanced Customer
Experience Tailored experiences and recommendations. Increased customer retention and loyalty.
Increased Automation frees up human agents for

Efficiency complex tasks. Reduced operational costs and improved productivity.
Scalability Handle high volumes of customer inquiries. Improved customer experience and reduced wait times.
Cost
Savings Automation reduces operational costs. Improved profitability and competitiveness.
Compliance Accurate responses ensure regulatory Reduced risk of non-compliance and improved brand
compliance. reputation.
Personalisation Tailored experiences and recommendations. Increased conversion rates and customer engagement

Edge AI: Breaking The Latency Barrier

Edge AI: Artificial intelligence at the edge involves running AI algorithms and models locally on
devices or systems near the data source. Instead of centralised cloud computing facility or
private data centre.
Notable Industries Where Edge AI Can Have Significant Impact

Healthcare: Edge AI transforms patient care through instant vital sign analysis, enabling
rapid response to emergencies. It powers remote monitoring and predictive health
analytics, allowing timely interventions and improving overall healthcare delivery.
Smart Cities: Edge AI is critical to the development of smart cities since it allows for
effective resource management, such as energy and water. Real-time data analysis is used
for applications such as traffic monitoring, waste management, and public safety
advancements.
Agriculture: In agriculture, Edge AI can boost the adoption of precision farming by analysing
data from sensors and drones to optimise crop yields and resource use. This enables
farmers to make data-driven decisions, thereby increasing production and sustainability.
Security & Surveillance: Edge AI in the security and surveillance sector enables real-time
threat detection and response by processing video feeds and sensor data at the edge of the
network. This allows for faster identification of suspicious behavior, automatic alerts to
security personnel, and optimised camera settings for higher-quality video feeds, ultimately
enhancing security and reducing costs.
Edge AI: Breaking The Latency Barrier
Cloud Al vs Edge Al
Cloud Al Edge Al
Processing Location Processing Location

Centralised data centres On-device or near data source
Connectivity Connectivity
Requires constant internet connection Can operate whilst offline
Latency Latency
Higher latency due to data transfer Lower latency, real-time processing
Data Privacy Data Privacy

Data leaves local environment Data remains on local device
Scalability Scalability
Highly scalable for complex tasks Limited by device capabilities

Key Advantages Of AI On Edge In Business
Real-time Instant data analysis at source Faster response times, enhanced operational efficiency, competitive
Processing edge through rapid insights
Reduced Minimises delays in data processing Improved performance in time-sensitive apps, enhanced user
Latency experience, increased system reliability
Bandwidth Reduces need for raw data transmission Lower data costs, improved AI scalability, deployment in limited-band-
Optimisation width areas
Enhanced Local processing of sensitive data Better regulatory compliance, reduced breach risks, increased customer
Data Privacy trust
Offline Operates without constant connectivity Improved reliability in poor network areas, continuous operation in
Functionality remote locations, reduced downtime
Cost Reduces cloud and data transfer expenses Lower operational costs, improved AI ROI, more predictable IT budgeting
Optimisation
Energy Reduces data center energy consumption Lower energy costs, improved sustainability metrics, better alignment
Efficiency with CSR goals
Customisation Allows for location-specific solutions Better adaptability to diverse environments, meets specific industry
& Flexibility requirements, increased local innovation potential
What Are Small Language Models (SLMs)?

SLMs: Small language models refer to artificial intelligence (AI) systems that are
designed to process and generate human-like language, but with a smaller footprint in
terms of model size, computational requirements, and training data.
Key Characteristics of SLMs
Compact Architecture: Small language models have fewer parameters and require
less computational power, making them more efficient and deployable on edge
devices or resource-constrained environments.
Limited Training Data: These models are trained on smaller datasets and can learn
from limited labeled data, making them more adaptable to niche domains or
applications with limited data availability.
Focused Capabilities: Small language models are designed to excel in specific

tasks, such as conversational AI, text classification, or language translation, rather
than attempting to be general-purpose language models like LLMs.
Efficient Inference: Small language models are optimised for fast inference,
enabling real-time processing and response times, which is critical for applications
like chatbots, voice assistants, or real-time language translation.
What Are Small Language Models (SLMs)?
Small vs Large Language Models

Small Language Models Large Language Models
Lower resource requirements, Higher computational needs,

suitable for edge devices Computational often cloud-based
Efficiency
Significantly lower Higher energy

energy usage Energy consumption
Consumption
Faster processing, ideal Potentially slower

for real-time applications Inference
Speed due to model size
Can run locally, Often requires sending

reducing data exposure Privacy data to external servers
Lower Higher costs due to

operational costs Cost- resource requirements
Effectiveness

Small Language Models (SLMs): Big Wins For Indian Businesses

Cost Reduces data storage and computational

Effective Reduced operational costs, improved profitability
power costs
Edge Improved performance, reduced latency in areas with limited internet
Deployment Reduces latency and improves performance
connectivity
Faster Quickly adapts to changing market Improved responsiveness to changing market conditions, enhanced
Adaptation conditions and regulations competitiveness
Faster Rapid deployment for quick response to
Deployment Improved time-to-market, enhanced competitiveness
market changes
Improved Reduces risk of data breaches and cyber
Improved data security, reduced risk of cyber attacks
Security attacks
Increased Accessible on low-end devices, reaching
Accessibility Improved accessibility, increased market reach
a wider audience in India
Lower Computational Suitable for edge devices or areas with
Reduced infrastructure costs, improved accessibility in rural areas
Requirements limited internet connectivity
Offline Functions offline, ideal for areas with
Capability Improved accessibility in rural areas, enhanced customer experience
limited or no internet connectivity
Enables personalised experiences for
Personalisation Improved customer satisfaction, increased loyalty
customers in Indian languages and dialects
Real-Time Enables prompt response to customer
Processing Improved customer satisfaction, increased loyalty
queries
Artificial Intelligence (AI) Agents: Business Operations On Autopilot

AI Agents: An artificial intelligence agent (AI) is a software programme that interacts with its environment, collects data, and uses it to perform
self-defined tasks in order to attain human-set goals.
Types Of AI Agents
Simple Reflex Agents: A simple reflex agent operates based on Utility-Based Agents: A utility-based agent uses complex reasoning
predefined rules and immediate data, responding only to specific to maximise desired outcomes by comparing different scenarios and
event-condition-action rules. It's suitable for simple tasks that don't their utility values. It chooses the option that provides the most rewards,
require extensive training. allowing users to optimize their goals, such as finding the fastest flight
regardless of price.
Model-Based Reflex Agents: A model-based agent evaluates probable Learning Agents: A learning agent continuously improves its results by
outcomes and consequences before deciding, using an internal model of learning from previous experiences, adapting to new data and
the world it perceives, built from supporting data. This allows for more feedback. It also generates new tasks to train itself, refining its
advanced decision-making compared to simple reflex agents. performance over time to meet specific standards.
Goal-Based Agents: A goal-based agent evaluates the environment and Hierarchical Agents: A hierarchical agent is a multi-tiered system
compares different approaches to achieve a desired outcome, choosing where higher-level agents break down complex tasks into smaller
the most efficient path. With robust reasoning capabilities, they're ones, assigning them to lower-level agents. Each agent operates
suitable for complex tasks like natural language processing (NLP) and independently, reporting progress to its supervisor, who coordinates
robotics applications. and integrates the results to achieve collective goals.

Artificial Intelligence (AI) Agents: Business Operations On Autopilot
AI Agents Framework Vs Traditional AI

AI Agents Traditional AI
Can make decisions and Requires human oversight

act independently Autonomy for most decisions
Learns and adapts to new Often requires manual

situations in real-time Adaptability updates or retraining
Can work together with other Generally operates

AI agents and humans Collaboration in isolation
Capable of handling Better suited for specific,

complex, multi-step tasks Task predefined tasks
Complexity
Can approach problems Usually follows

from multiple angles Problem
Solving
pre-programmed solutions

Key Advantages Of AI Agents In Business
Autonomous Agents can make decisions independently, without human Increased efficiency, reduced operational costs,
Decision-Making intervention, and adapt to changing situations and enhanced competitiveness
Real-Time Agents can respond to events and requests in real-time, Improved customer satisfaction, reduced
Responsiveness providing immediate support and feedback response times, and enhanced business agility
Personalised Agents can tailor interactions to individual customers, Increased customer loyalty, improved employee
Interactions employees, or stakeholders, providing a more human-like
experience engagement, and enhanced business relationships
Proactive Agents can identify potential problems and take proactive Reduced risk, improved business continuity, and
Problem-Solving measures to prevent or mitigate them enhanced reputation
Continuous Learning Agents can learn from experiences, adapt to new data, and Improved decision-making, increased efficiency,
and Improvement improve their performance over time and enhanced competitiveness
Agents can be easily scaled up or down to meet changing

Scalability and Improved resource allocation, reduced costs, and
business needs, and can be adapted to new tasks and
Flexibility enhanced business agility
environments
Agents can provide detailed records of their decision-making Improved regulatory compliance, reduced risk,
Enhanced Transparency
processes and actions, enabling greater transparency and and enhanced business reputation
and Accountability
accountability
Responsible AI: Governance In Artificial Intelligence

Responsible AI: Responsible AI involves using artificial intelligence in a way that prioritises human
oversight and societal benefit. This means developing and deploying AI models, datasets, and
applications ethically and lawfully, without causing harm or perpetuating biases.
Best Practices Of Incorporating Responsible AI In Business

Alignment Of C-Level Leadership: AI governance practices should be closely aligned with an
organisation's overarching AI strategy, ensuring that top management's business objectives and
responsible AI practices are mutually supportive. A misalignment between these two can undermine
the effectiveness of AI initiatives.
Risk Management & Monitoring: Establish a comprehensive governance, risk, and compliance
framework to standardise best practices and ensure the systematic monitoring of AI-related activity.
It is essential to consider the full lifecycle of an AI-powered system within this framework,
encompassing data used for training, AI models, application usage, human impact, and security.
Agriculture: In agriculture, Edge AI can boost the adoption of precision farming by analysing data
from sensors and drones to optimise crop yields and resource use. This enables farmers to make
data-driven decisions, thereby increasing production and sustainability.
Security & Surveillance: Edge AI in the security and surveillance sector enables real-time threat
detection and response by processing video feeds and sensor data at the edge of the network. This
allows for faster identification of suspicious behavior, automatic alerts to security personnel, and
optimised camera settings for higher-quality video feeds, ultimately enhancing security and reducing
costs.
Responsible AI: Governance In Artificial Intelligence
Benefits of an Organisation-Wide Responsible Al Strategy

With Strategy Without Strategy
Enhanced Ethical Potential Bias

Decision-Making and Unfairness
Increased Reputation
Stakeholder Trust Damage
Responsible Legal and

Innovation Legal Regulatory Issues
Mitigated Inefficient Resource

Risks Allocation
Regulatory Stakeholder
Compliance Mistrust

Decoding The AI Strategy Of India's Top-Tier Listed Enterprises
Organisation AI Offerings/Use Case AI Strategy
RIL is a leading champion for the development and deployment of indigenous AI

technologies in the country.
Cloud based AI development tools & The company is developing a suite of infrastructure-level AI tools under the brand name
Data Centres "JioBrain" to allow industry and consumer adoption of the technology.
The company is building data centres for AI operations that are powered by renewable
energy. To establish an end-to-end AI development ecosystem in India.
The company has formed an "AI.Cloud" division that provides AI- embedded solutions.
Additionally, over 300K employees are trained in AI skills.
The company also assists its clients in industries such as BFSI and Retail in implementing a
Consulting Services, Sector-specific knowledge-based technology architecture that can enable the usage of AI/GenAI
business tools, Cyber Security technologies to improve the efficiency of their business operations.
TCS has integrated AI into its BFSI core banking suite "TCS BaNCS" and its AI-powered
e-commerce platform "TCS OmniStore" that helps retailers manage omnichannel customer
experience.
Source: Inc42 Analysis, Company Filings

Note: The top tier enterprises are ranked based on their market capitalisation as of November 7, 2024.
The AI strategy of the organisations featured are sourced from their latest AGM and annual reports.
HDFC Ergo has partnered with Google Cloud to set up an AI Centre of Excellence,
showcasing how the insurer can leverage AI to enhance customer experience. The
collaboration can position HDFC Ergo as a thought leader in applying AI innovations to the
Indian insurance market.
AI-powered banking assistant, Use of HDFC Bank has developed a proof-of-concept (PoC) for employing AI technology to extract
AI to enhance customer experience important information from credit approval memos (CAMs). Using AI technology, the Bank
was able to demonstrate a more efficient and successful method of loan assessment.
The bank has developed an AI-powered assistant prototype to serve as a copilot for branch
executives. Once implemented, this can help shorten response times to customer queries,
resulting in more efficient banking operations.
As of FY24, Airtel had created over thirty commercial use cases using AI technology across
its digital products, including Airtel Cloud, Airtel IQ, and Airtel Payments Bank, among others.
AI-powered network optimisation, Airtel is using AI/ML technology to reduce carbon emissions. Airtel employs AI/ML technolo-
Reducing carbon footprints, Enhancing gy to pinpoint and terminate underutilised radios within its telecom infrastructure. Resulting
customer experience in increased operations efficiency.
The company has also invested in an Indian startup, "Vahan.ai,” which offers an AI-powered
platform to hire and manage blue-collar workers.

ICICI Bank has introduced an AI-powered virtual relationship manager (VRM). This enables
relationship managers to cater to customer needs in a more personalised and effective
manner.
ICICI Bank is actively building an ecosystem through strategic partnerships with early and
AI-powered banking assistant, Use of
growth-stage startups. The bank is seeking startups that align with its digital roadmap and
AI to enhance customer experience
have the potential to address innovations in financial services.
Given the sensitive nature of data, ICICI Bank is taking a more cautious and responsible
approach towards incorporating AI technology in its technical infrastructure. A trend that is
observed across the BFSI sector.
SBI leverages AI to enhance customer experience across its digital platforms YONO and
YONO Business. AI helps personalise banking, improve customer service, and identify net-
work issues.
AI-powered banking assistant, Use of
The bank is open to partnerships with startups that offer AI solutions, indicating a strategic
AI to enhance customer experience
focus on leveraging external AI expertise.
Business Rule Engine (BRE): SBI has developed an AI-powered BRE risk model based on lo-
gistic regression to predict default events and assess creditworthiness.

Decoding The AI Strategy Of India's Top-Tier Enterprises
Infosys Topaz: This platform acts as a primary hub for Infosys' AI capabilities, offering a di-
verse range of AI-powered solutions across multiple business functions.
Consulting Services, Sector-specific Infosys emphasises collaborations with hyperscalers and startups, indicating a strategy of
business tools leveraging external AI expertise to enhance its offerings.
Infosys assisted Danske Bank in building DanskeGPT, a secure and ethical chatbot assistant,
leveraging generative AI to enhance personal productivity.
AI Integration across diversified Businesses: ITC's use of AI extends all over its diversified
business portfolio, from agriculture to FMCG and education, suggesting widespread use of
AI technologies.
Brand Marketing, Business Operations,
Smart Agriculture: The ITCMAARS platform uses artificial intelligence to provide farmers
Customer Experience
with real-time information, personalised guidance, and market access.
ITC used GenAI technology to generate content for its campaign “ #hardilkifantasy” for its
brand ‘Sunfeast Dark Fantasy”, and “Bingo!”.

HUL aims to use AI to improve consumer experiences by personalising omni-channel

journeys, using intelligent data to better allocate resources, and supporting the expansion of
digital commerce.
Brand Marketing, Business HUL utilises AI to optimize media planning and deployment, leveraging data analytics for
Operations, Customer Experience real-time spend optimisation and improved audience targeting.
HUL uses AI to personalise consumer experiences across its brands. For example, beauty
firms such as Lakmé, Pond's, and TRESemmé use AI to deliver personalised skin and hair
care regimens.
L&T has established a dedicated platform to foster AI innovation. This platform brings
together data scientists, domain experts, and tech leaders to collaborate on advanced
solutions.
Operational Efficiency, Improve L&T's strategic investments in AI, data centers, cloud services, and semiconductor
Project Delivery technologies demonstrate its commitment to embracing emerging tech for future growth
and business sustainability.
L&T Technology Services (LTTS's) partnership with Nasscom Gen AI Foundry to support AI
startups shows its strategy to tap into startup innovation and talent.

Key Risks & Challenges In Adopting Generative AI For Business
Explainability & Transparency Data Quality & Availability

The complexity and lack of interpretability of GenAI models Indian businesses often face challenges with data quality and availability,
make it difficult for Indian businesses to ensure transparency which are essential for training and deploying generative AI (GenAI)
and explainability in AI-driven decision-making. models. Poor data quality can lead to biases and inaccuracies in AI
outputs.
Cultural & Organisational Changes Infrastructure & Computational Power

Implementing GenAI often necessitates significant High computational power and infrastructure are required
cultural and organisational changes, which can be for GenAI, posing a challenge, particularly for companies in
difficult for businesses, particularly those with Tier II and III cities where infrastructure may be less
traditional or hierarchical structures. developed.
Talent Attraction & Retention Cybersecurity Risks

Attracting and retaining AI talent is challenging due to GenAI systems handle vast amounts of data, making them
high global demand, with Indian companies facing attractive targets for cyber threats. Indian businesses must
competition from international offers. invest in strong cybersecurity measures to prevent data breaches
and cyber-attacks.
Cost & ROI

The high cost of developing and implementing
GenAI technology can be a barrier for Indian
businesses, especially if short-term ROI is unclear.
Generative AI
Startup Ecosystem
In India
India’s GenAI Startup Ecosystem: Key Statistics
200+ GenAI Startups In India
$1.2 Bn+ Total Funding Raised Since 2020
4.4X Surge In Cumulative Venture Capital Inflow From 2020 to 2024
63% Of GenAI Startups Operate In Code & Data Segment
70% Of GenAI Startups Are Offering Solutions Only For Enterprise Clients
Bengaluru Makes More Than One-Third Of The Total Funding
360+ Total Number Investors Actively Backing Native GenAI Startups

Source: Inc42
Note: Funding data is for the period between 2020 and Q3 2024.
This analysis is based on a sample set of over 120 VC funded native generative AI startups in India.
India’s GenAI Startup Landscape: Natives Vs Adopters

GenAI Natives GenAI Adopters
GenAI Natives:
Indian startups that have been
anchored with Generative AI
(GenAI) technology in their
products and services from
day one.
GenAI Adopters:
Established Indian tech
startups that have
subsequently integrated
GenAI technology into their
business offerings, as
opposed to those that were
meritic.ai founded with GenAI at their
core from day one.
Source: Inc42
Note: This is not an exhaustive list.
India’s GenAI Startup Application Landscape: Horizontal vs Vertical Solutions

Notable Startups
Audio/ Speech
Video
Horizontal Solutions
(Sector Agnostic) Code & Data
Image &
3D Modelling
Text &
Conversational AI
Fintech/Financial
Services
Ecommerce/ Retail
Vertical Solutions
Healthcare
(Sector Specific)
Education
Robotics
Source: Inc42
Note: This is not an exhaustive list.
This list includes both GenAI natives and adopters.
Over $1.2 Bn Poured Into India’s GenAI Startups Since 2020
1,250 150
One-third of all investments in

Indian GenAI startups between
1,000 2020 and Q3 2024 occurred
Cumulative Funding Amount ($ Mn)
during 2022.
100
750 Venture capital investment in
India’s native generative AI
Deal Count
startups has surged, growing
4.4 times from $277 Mn in 2020
500
to over $1.2 Bn by 2024
50
Among the top-funded native
250 generative AI startups in India
are Pixis, Qure AI, Eightfold AI,
and Krutrim
0 0
2020 2021 2022 2023 2024 (Up to Q3)
Funding Amount ($ Mn) Deal Count
Source: Inc42
Note: 2024 data is for the period between January 1 and September 28.
Over 60% Of India’s GenAI Startups Are All About Code & Data
Others
Startups offering products in
Code & Data
5% the code and data segments
AI Hardware &
Foundation Models 4% make up nearly two-thirds of all
120+ funded GenAI startups in India.
Image 63%
6%
Generation &
Editing
Funded Native
GenAI Startups Key applications in these areas
10%
include model fine-tuning,
Audio & Video
AI-powered report generation,
12%
and data orchestration.
Text & Chatbots
Source: Inc42
India’s GenAI Startups Bet Big on Enterprise Solutions

Over 70% of Indian GenAI startups are only chasing enterprise clients
Global tech giants like OpenAI, Anthropic, and AI

have established strongholds in the consumer
application space, making it challenging for
Only Enterprise
Grade Solutions Indian startups to break into this segment. As a
result, Indian entrepreneurs find greater
potential in focusing on localised,
enterprise-grade solutions rather than
competing in the crowded consumer market.
Also For Consumers India’s creator economy is on a steep growth

& Individual Creators trajectory, projected to exceed $3.9 Bn by 2030.
Despite the dominance of global players,
localised solutions with competitive pricing are
well-positioned to achieve higher adoption
0% 20% 40% 60%
among Indian creators compared to their
international counterparts.
% of total funded startups
Source: Inc42
Note: This analysis is based on a sample set of over 90 VC funded native generative AI startups in India.
Majority of the GenAI startups offering solutions for consumers and individual creators also have an enterprise plan.
Bengaluru Powers India’s GenAI Boom With 45% Of Funded Startups
Others
Pune 10%
4%
Bengaluru
Mumbai
Bengaluru has the most developed
11% investor ecosystem in India for
120+ new-age technologies, making it
Funded Native 45% easier for GenAI startups in the city
GenAI Startups to access venture capital compared
Delhi NCR 12% to other cities in India
18%
Abroad
Source: Inc42
One-Third Of GenAI VC Funding In India Flows To Bengaluru

Native generative AI businesses in India have raised a total of $1.2 Bn, with over one-third of this amount $442 Mn (or 36%) — going to
startups headquartered in Bengaluru
Hubs Notable Funded Startups

Bengaluru
Bengaluru
Delhi NCR
Top Five Hubs
Delhi NCR
Mumbai
Mumbai
Hyderabad
Hyderabad
Pune
0 100 200 300 400

Pune
Funding Amount ($ Mn)

Source: Inc42
Investors Actively Backing Indian AI Startups
Investor Name Investor Type Deal Count Notable Startups Backed
Accelerator/Incubator 5 Alchemyst AI, Dubpro.ai, vverse.ai
VC Firm 10 Anyway.ai, whitetable.ai, Datavio, gocodeo.com
VC Firm 3 Blend, Fego.ai, Nektar.ai
VC Firm 6 Finbots.AI, Nanonets, Nurix AI, Spyne
VC Firm 7 Segmind, magicstudio.com, suitable.ai
VC Firm 16 figr.design, tradomate.one, plotch.ai, segwise.ai
VC Firm 4 enkryptai.com, RagaAI, daxa.ai, brieflyai.com
VC Firm 5 Autodraft AI, Honestly AI, rapidclaims.ai
VC Firm 5 Agara, Kusho, Segwise, SiftHub

Source: Inc42
Note: This is not a ranking of any type rather a representation of select notable investors backing Indian AI/GenAI startups.
The deal count mentioned is sourced from our internal database and survey titled “Inc42’s List Of Most Active GenAI Investors 2024”
VC Firm 6 Expertia AI, Lightbulb Ai, Locale.ai, Pixis AI
VC Firm 4 drivetrain.ai, factors.ai, murf.ai
VC Firm 5 Myelin Foundry, Expertia.AI, slanglabs.in
Accelerator/Incubator 5 Beatoven.ai, vidyo.ai, expertia.ai
VC Firm 5 Dubpro.ai, inspektlabs.com, predis.ai
Accelerator/Incubator 3 we360.ai, param.ai
VC Firm 6 Unstudio, NeuroPixel.AI
VC Firm/ Angel Network 5 OnFinance AI, AuraML, Skit Ai, Uniphore
VC Firm 4 kosha AI, axai.ai, Clodura.AI , vphrase.com
VC Firm 3 Llumo AI, Maino.ai
VC Firm 3 Alchemyst AI, LiaPlus AI

Source: Inc42
VC Firm 3 getayna.com, Vitra.ai
CVC 10 Gnani.ai, dview.io
VC Firm 3 subtl.ai, CureSkin
VC Firm 3 Pintel.AI, Beatoven.ai, Expertrons
VC Firm 4 Hyperbots, Convin, Haptik
VC Firm 3 Qure AI, Sarvam AI, AI4Bhārat
VC Firm 5 sifthub.io, Peoplebox.ai
VC Firm 6 Neysa, Observe.AI, Neuron7.ai
VC Firm 4 Sarvam AI, AI4Bhārat, gan.ai
VC Firm 4 Rezolve AI, Spyne AI
VC Firm 4 Pixis, LimeChat, Ai Palette, Raga AI

Source: Inc42
VC Firm 3 Agara, InVideo
VC Firm 6 Vodex AI, Boxx AI
Accelerator/Incubator 7 CoRover, plotch.ai, Dubpro.ai
Accelerator/Incubator 8 Leena AI, Nanonets, Observe.AI, RedBrick AI
VC Firm 3 GreyLabs AI, SiftHub, Krutrim
Source: Inc42
India’s GenAI Startup Investor Survey 2024: Key Highlights
84% Of Indian VCs Prefer Industry-Focused Startups Over General-Purpose

Solutions
Fintech Emerges As The Top Choice For Developing Specialised AI Solutions
70% Of Indian VC Firms Have Implemented Generative AI Solutions In Their

Operations
65% Of Startup Investors Show A Preference For Backing Early Stage Ventures
Over Growth Or Late Stage Ones
Lack Of Skilled Talent Is Seen As The Biggest Challenge For Indian GenAI
Startups
46% Of Indian VCs Are Pushing For Startups To Focus On Retrieval-Augmented

Generation (RAG) Solutions
84% Of Indian VCs Say The Gen AI Funding Boom Is Heavily Driven By FOMO
Source: Inc42
Early Stage GenAI Startups: The Investment Of Choice For 65% Of Indian
Investors
Early India's GenAI startup ecosystem is still in its early

Stage stages. This is evident from the fact that more than
65% of native GenAI startups in India were founded
in or after 2020.
75% of all funded native GenAI startups in India are

Growth at the seed stage. Most investors favour
Stage application-focused businesses (beatoven AI,
OnFinance) to infrastructure-focused firms (Ola
Krutrim, Sarvam AI).
The popularity of AI/GenAI applications among

Late Indian consumers and enterprises has increased
Stage
demand for indigenous chips, particularly those
focussing on EDGE and matrix data processing.
0% 20% 40% 60%
% of total respondents
Source: Inc42 Survey
Note: These insights are based on survey of more than 50 venture capital investors that have backed Indian GenAI startups.
Question asked: What stage do you prefer for funding Indian AI/GenAI startups?
Indian VCs Bet Big On Industry-Specific GenAI Startups Over Horizontal Solutions
Horizontal Solutions
(Sector Agnostic) 16%
With the proliferation of

infrastructure-level and
horizontal solutions by global
Indian Startup players, Indian investors are
Investors showing a stronger preference
for domestic GenAI businesses
that offer niche, sector-specific
solutions.
Vertical Solutions
84%
(Sector Specific)

Question asked: Which of these two GenAI segments do you believe holds the most potential in the Indian market over the next decade?
Fintech Leads The Pack: Indian Investors' Top Choice For Vertical AI Solutions
Fintech
Healthcare
The banking and financial services
sectors are among those where
GenAI technologies are expected
Manufacturing to have the most significant
impact. Major players like JP
Education/
Morgan, BlackRock and Bank of
Edtech America have already started
integrating GenAI solutions into
Retail/
Ecommerce
their operations.
0% 20% 40%
The percentage values do not add up to 100 since the responses were not mutually exclusive, multiple selection was enabled
Question asked: Which of the following segments do you have the most confidence in for vertical GenAI solutions?
Indian VC Firms Embrace GenAI: 70% Already Using AI Solutions For Business
Operations
No
30%
Indian Startup Yes
Investors 70%

Question asked: As an organisation are you officially using any GenAI-based products/services in your business operations?
Fear Factor: 84% Of Indian VCs See GenAI Investment Boom As FOMO
Fueled
High FOMO 84%

Driven
Startup funding in native Indian

GenAI startups increased 4.4X
Moderate
FOMO 13%
times in 2024 compared to 2020.
Driven This indicates that Indian startup
investors are optimistic about
backing GenAI startups founded
by Indian entrepreneurs.
Low FOMO
Driven
0% 25% 50% 75%
Question asked: On a scale of 1 to 10, how would you rate the extent of FOMO-driven investment in India's AI/GenAI startup ecosystem?
The New Normal For Indian Startups: Startups Embrace GenAI Technology,
Investors Confirm
40%
30%
20%
10%
0%
AI/GenAI is a key part Currently implementing Considering AI/GenAI AI/GenAI is already a key No plans to
of our product/service roadmap AI/GenAI adoption in the next 6-12 months differentiator for our adopt AI/GenAI
portfolio startups
Question asked: How would you assess the tech readiness of your portfolio startups (non-GenAI) for the adoption of GenAI technology?
VCs To Indian Startups: Build The AI Skyscrapers, Not The Foundations
Build tools and

applications on 62%
existing LLMs
Products for
model fine-tuning
51% 91% of the money invested in
Indian native GenAi startups to
Products in RAG 46%
date went to companies building
business or consumer
Domestic closed-
applications on GenAI technology.
source foundation
model (LLM)
19% As opposed to foundational
solutions like the LLM model and
Domestic open-source
foundation model 11%
cloud infrastructure.
(LLM) development
0% 20% 40% 60%

Question asked: In which areas of GenAI should Indian entrepreneurs concentrate when building a startup in 2024?
Large-Scale Indian Enterprises Trail Globally In AI Adoption, Say 75% Of Startup Investors
Most large-scale organisations in India struggle to convert their AI use cases from proof-of-concept to organisation-wide deployment
No
25%
Indian Startup Yes
Investors 75%

Question asked: Do you think the rate of AI/GenAI adoption among large Indian enterprises lags behind that of their global counterparts?
Talent Acquisition: The #1 Hurdle For India's GenAI Revolution
Talent/Workforce 68%
According to a recent Amazon

Slow Market
Adoption
49% Web Services (AWS) survey, 79%
of Indian businesses found it
Market Correction 41%
challenging to acquire AI talent
(Hype correction)
that met their expectations. The
lack of suitable AI talent in India's
Regulatory Risk 11% workforce can hinder the growth
and development of the country's
Lack Of Government 8%
GenAI startup ecosystem.
Support
0% 20% 40% 60%

Question asked: According to you which among the following are the biggest challenges faced by Indian GenAI founders?
Key Growth Drivers Of GenAI In India

Advances In AI Technology: The push to make AI foundation models more cost-effective is accelerating, especially in emerging markets.
Recent innovations like Microsoft's Phi-3 family, OpenAI's GPT-4o mini, and Mistral's Mixtral introduce compact language models, offering an
exciting opportunity for countries like India where cutting-edge digital hardware is still evolving.
Upskilling & Reskilling In AI: AI skills are in high demand across India as professionals at all levels—from executives to entry-level
employees—acknowledge the importance of AI in their roles. Bengaluru, with the world’s second-largest pool of AI talent, stands as a key
hub for innovation and expertise in this growing field.
Growing Demand For Business Automation: With India on track to become a $5 Tn+ economy by 2030, business automation is set to play
a transformative role. Indian companies are already adopting AI-driven chatbots to streamline customer support, and automation is
expanding rapidly into digital marketing, sales, software development, and client service.
Generative AI In Consumer Electronics: India’s consumer electronics market is witnessing a boom in demand for AI-powered products
like smart speakers, home gadgets, and autonomous vehicles. The launch of Apple’s iPhone 16, with a focus on on-device AI, could pave the
way for other electronics brands to bring more AI/GenAI-enabled devices to Indian consumers.
Government Support For Semiconductor Development: India’s government is enthusiastic about positioning the country as a leading
hub for semiconductor manufacturing and design. In August 2024, the government boosted its Semiconductor Manufacturing Policy
budget from $10 Bn to $15 Bn, and major Indian players like Tata, HCL, and Bharat Electronics are already investing in this critical industry.

Key Challenges For GenAI In India

Few Startups In GenAI Infrastructure Solutions: Essential GenAI infrastructure tools like GPUs, large language models, and model
fine-tuning capabilities are key for practical AI applications. Yet, less than 5% of funded Indian startups are focusing on building these
foundational tools, with most choosing to work on application-layer solutions instead.
Risks Of Deepfake & Misinformation: With India home to the world’s second-largest internet user base, the rise in AI-generated content
could lead to serious risks. There’s growing concern about potential misuse, including spreading false information, swaying public opinion,
or even interfering with political matters.
Unclear Regulations & Legal Ambiguity: India currently lacks specific laws governing artificial intelligence. While the government has
introduced “Niti Aayog’s Responsible AI #AIFORALL” as a blueprint for future AI policies, uncertainty still surrounds how AI regulations will
evolve, leaving a gap in guidance for companies and innovators.
Slow Adoption Among Large Enterprises: Although startups like Zomato and Flipkart have embraced GenAI, larger enterprises are slower
to adopt it. A report by EY India shows only 30-40% of GenAI proof-of-concepts by Global Capability Centres (GCCs) and 15-20% by large
domestic companies in India are progressing to production. In contrast, 66% of India’s leading unicorns are already integrating GenAI into
their offerings.
Challenges In AI Governance: While larger firms are developing AI governance structures, smaller businesses are falling behind.
According to an IBM survey, 71% of Indian CEOs believe AI cannot work effectively without robust governance. Public-private collaboration
will be crucial in establishing guidelines to harness AI’s full business potential responsibly.

Methodology
Since 2015, Inc42 has been the go-to source for identifying Indian startups transforming industries and shaping society.
For this reports:
Native GenAI startup funding data in this report is from 2020 to 28 September 2024, unless mentioned otherwise
Seed stage: Startup at angel or seed stage
Growth stage: Startups at Series A and B funding stage
Late stage: Startups at Series C or above funding stage
Unicorn refers to any digital / tech company valued at or above $1 Bn or have touched this valuation once in their business lifecycle
A soonicorn is any public or private digital/tech company valued at or above $200 Mn
Our database enrichments and corrections are done on a regular basis, therefore slight variations in funding-related data compared to previously
released reports may exist
Unless specified otherwise, the market size cited in the report represents the calculated value of the total addressable market (TAM) using both
top-down and bottom-up methodology
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www.inc42.com
Inc42 is India’s largest tech media & information platform on a

CREDITS
mission to build & serve India’s tech, startup & internet economy. ANALYST
SANDEEP SINGH
From breaking the latest news to discovering the hottest
startups, from spotting upcoming trends to simplifying complex ART DIRECTOR
concepts, we cover everything tech in India’s internet economy. SABITH
Born in January 2015, Inc42 has become the leading source for DESIGNER
news & analysis on India’s rapidly growing tech, startup & ANUSHKA SHARMA
internet economy. Inc42, with over 40,000+ published stories,
100+ research reports, 120+ conferences & events & having
featured 1000s of entrepreneurs, now reaches over 25 Mn+ tech ADDRESS
leaders & professionals every month. Inc42 Media, 59/16, 4th Floor, Jujhar Tower,
RD Marg, Kalkaji, New Delhi, Delhi 110019
Contact: editor@inc42.com
DISCLAIMER
The data provided in this report has been obtained from public and private sources. We have made every attempt to ensure that the
information presented in this report is accurate and free from any discrepancies. Ideope Media Pvt Ltd, the parent company of Inc42 Media
and Inc42 DataLabs, is not responsible for any inaccuracy in the information presented or for any damages caused by the use of information
provided in this report. In case of any discrepancy or errors in the data, you can contact us at editor@inc42.com and we will try our best to
update the information in the digital version of the report. We are constantly updating our database of startups due to new person using or
relying on any information in this publication.
This report has been prepared in good faith on the basis of information available at the date of publication without any independent
verification. Ideope Media Pvt. Ltd. does not guarantee the accuracy, reliability or completeness of the information in this publication.
Readers are responsible for assessing the relevance and accuracy of the content of this publication. While this report talks about various
individuals and institutions, Ideope Media Pvt. Ltd. will not be liable for any loss, damage, cost or expense incurred or arising by reason of
anyperson using or relying on any information in this publication.
This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an
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THE RISE

India To Have 900 Mn+ Active Internet Users By 2025

Smartphone Internet Penetration 5G Enabled Indian

86% 443 Mn+

Cost Of 1 GB Number Of Female

Source: IAMAI, Inc42 Analysis

The State Of Indian Startup Economy

3rd 118 70K+ $154 Bn+

$7 Bn+ $38 Bn+ $107 Bn+

The Evolution Of Artiﬁcial Intelligence

Source: MIT, Inc42 Analysis

Theseus: A small robotic mouse TD-Gammon: This Artiﬁcial intelligence with

1970 1990 2010 2030 2050

1940 1960 1980 2000 2020 2040 2060

Source: Our World In Data, Inc42 Analysis

Understanding Generative Artiﬁcial Intelligence (GenAI)

What Is Generative Artiﬁcial Intelligence (GenAI)?

Popular Types Of GenAI Models

Understanding Generative Artiﬁcial Intelligence (GenAI)

Data Collection &

How Artiﬁcial Intelligence Is Shaping The Fifth Industrial Revolution

The ﬁfth industrial

The Global Artiﬁcial Intelligence Business Ecosystem

Manage data processing

End User Business & Consumer

A Comparative Look At Top Generative AI Models

GenAI Models Method Strengths Weaknesses Applications

Two competing neural networks: Training can be unstable, Image/video generation,

Powerful for complex Machine translation, text

Speech recognition, text

Captures underlying Information loss during

Achieves superhuman Requires deﬁning

The Generative Artiﬁcial Intelligence (GenAI) Value Chain

Model Development & Fine Tuning

Application Layer (Text/Image/Code/Audio & Video)

The Future Of GenAI In India: A $17 Bn+ Market Opportunity Awaits

20 Rising Demand For AI-Powered Consumer Devices: The Indian

Expanding AI Talent Pool: Upskilling in AI is increasingly popular in

Source: Inc42 Analysis, Secondary Sources

Artiﬁcial Intelligence Takes Centre Stage In Indian Policy Push

Initiatives Description Key Objectives & Impact

Source: PIB, IndiaAI Mission, Inc42 Analysis

Initiatives Description Key Objectives & Impact

Source: PIB, IndiaAI Mission, Inc42 Analysis

Retrieval Augmented Generation (RAG): Turbocharging Business With Intelligent

Best Practices Of Using RAG In Business

Employee Upskilling: Provide employees with training on using RAG systems

Retrieval Augmented Generation (RAG): Turbocharging Business With Intelligent

Access to vast, up-to-date Limited to training data,

Higher accuracy with real-time Potential for outdated or

Quickly adapts to new Requires full model retraining

Easily scalable with growing Limited by model size

Update knowledge base without Regular model updates

Source: Inc42 Analysis, Secondary Sources

Key Advantages Of Incorporating Retrieval-Augmented Generation (RAG) In Business

Advantage Brief Impact on Business

Improved Accurate responses reduce errors and

Increased Automation frees up human agents for