“Generative AI has emerged as a disruptive technology that can potentially help corporates improve productivity while vastly improving customer experience as well. As of now, major use cases and financial benefits of Gen AI fall in sales, marketing and customer support with software engineering expected to rise sharply,” domestic brokerage JM Financial said.
However, analysts say that most Indian companies are lagging behind in terms of generative AI adoption.
“At the current stage of adoption, it appears that the revenue from generative AI projects is not significant for Indian IT. Scaled up programs and foundation work required for AI such as the development of appropriate cloud and data infrastructure can drive revenues in case the adoption increases among clients,” says Kawaljeet Saluja of Kotak Institutional Equities.
What is Gen AI?
Generative AI refers to a category of AI algorithms that uses techniques such as deep learning and artificial neural networks to create original outputs by learning from the data during the training process.Gen AI isn’t just limited to OpenAI’s ChatGPT as Google, Facebook, Alibaba and others are all training their own versions.”While India certainly lacks a large language model of its own, Indian companies are investing in the application layer to make non-deterministic models work in production use cases. The ecosystem is relatively nascent and is replete with challenges as Indian companies tie up with global pioneers,” says Sachin Dixit of JM Financial.
AI stocks in India
India’s AI market is growing at a CAGR of 25-35% and is projected to reach around $17 billion by 2027, according to a report by BCG and Nasscom.
Niche companies in India are seen as playing a bigger role in AI. Recently, Happiest Minds announced the formation of a new business unit, Generative AI Business Services (GBS) focused on GenAI which will offer full-scale GenAI offerings like contextual chatbots, learning simulators, contract management, sentiment analysis and content generation.
Affle is already helping its corporate clients discover, acquire and engage consumers through proprietary deep learning, AI-powered algorithms.
Other AI stocks include Bosch, Cyient, Kellton Tech Solutions, Oracle Financial Services Software, Persistent Systems, Saksoft and Zensar Technologies.
Despite AI being one of the biggest buzzwords in the last one year, the adoption of Gen AI tools remains a small subset of the ecosystem.
“Investors, however, have so far experienced dismal results in the last two disruptive technologies (cryptocurrency and metaverse) though we do not believe the story is yet over for these technologies. We do, however, believe that investor patience is warranted and enough due diligence should be conducted as the hysteria might result in severalpretenders emerging,” Dixit said.
(Data: Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
