National Strategy On Artificial Intelligence
The Government of India in its Budget of 2018–19 had prioritized building our technology capabilities and mandated NITI Aayog to initiate a national programme to direct the efforts of the Government in the area of artificial intelligence.
Accordingly, NITI Aayog adopted a three-pronged approach:
(i) undertaking exploratory proof-of-concept AI projects in various areas,
(ii) crafting a national strategy for building a vibrant AI ecosystem in India, and
(iii) collaborating with various experts and stakeholders.
Consequently, NITI Aayog released India’s National Strategy for Artificial Intelligence (NSAI) in June 2018.
The strategy, called #AI for All, combines the economic potential of AI with social development and inclusive growth, and positions India as the ‘AI Garage of the World’. With it, India joined an elite list of countries with a well-defined AI strategy.
As a follow-up to NSAI, the vertical is pursuing a series of strategy and implementation documents. AIRAWAT, which lays down India’s approach for the development of AI-specific cloud-computing infrastructure, was released in January 2020. The development of AIRAWAT will democratize access to critical hardware that is important to drive AI research and development.
Accordingly, NITI Aayog adopted a three-pronged approach:
(i) undertaking exploratory proof-of-concept AI projects in various areas,
(ii) crafting a national strategy for building a vibrant AI ecosystem in India, and
(iii) collaborating with various experts and stakeholders.
Consequently, NITI Aayog released India’s National Strategy for Artificial Intelligence (NSAI) in June 2018.
The strategy, called #AI for All, combines the economic potential of AI with social development and inclusive growth, and positions India as the ‘AI Garage of the World’. With it, India joined an elite list of countries with a well-defined AI strategy.
As a follow-up to NSAI, the vertical is pursuing a series of strategy and implementation documents. AIRAWAT, which lays down India’s approach for the development of AI-specific cloud-computing infrastructure, was released in January 2020. The development of AIRAWAT will democratize access to critical hardware that is important to drive AI research and development.
AI : An Emerging Focus Area
Artificial Intelligence (AI) is an emerging focus area of policy development in India on account of burgeoning AI industry, and ambitious governmental initiatives. Enhanced computing power, digitisation, increase in data storage capabilities at reduced costs has improved applicability of AI in business and society.
Private initiatives in India have been far ahead in the development and use of AI than the Government. From utilising various applications powered by AI to providing various online services like MakeMyTrip, Firstcry and Flipkart, which learn from consumers' online behaviour for making intelligent goods and services suggestions, corporations have been engaging in the use of AI for a long time. Big conglomerates are infusing AI to automate day-to-day operations. The insistence on automation of daily tasks is further necessitated by the fast growth of business. Indulgence of the private entities in AI is evident from the investments being made by them, specifically in the areas of e-commerce, anomaly detection, banking and finance, and retail.
Flipkart uses AI-powered robots at sortation centres to process 4,500 shipments an hour with twice the speed and 99.99% accuracy.
Swiggy uses AI-powered chatbots for customer support and an AI-ML model for search result optimisation. In India, many large corporations like Google and Walmart Labs are acquiring small start-ups for their AI innovations. Investments by private entities in AI-specific start-ups and the facilitation of an AI-friendly ecosystem by Government initiatives has resulted in blossoming of AI start-ups.
Private initiatives in India have been far ahead in the development and use of AI than the Government. From utilising various applications powered by AI to providing various online services like MakeMyTrip, Firstcry and Flipkart, which learn from consumers' online behaviour for making intelligent goods and services suggestions, corporations have been engaging in the use of AI for a long time. Big conglomerates are infusing AI to automate day-to-day operations. The insistence on automation of daily tasks is further necessitated by the fast growth of business. Indulgence of the private entities in AI is evident from the investments being made by them, specifically in the areas of e-commerce, anomaly detection, banking and finance, and retail.
Flipkart uses AI-powered robots at sortation centres to process 4,500 shipments an hour with twice the speed and 99.99% accuracy.
Swiggy uses AI-powered chatbots for customer support and an AI-ML model for search result optimisation. In India, many large corporations like Google and Walmart Labs are acquiring small start-ups for their AI innovations. Investments by private entities in AI-specific start-ups and the facilitation of an AI-friendly ecosystem by Government initiatives has resulted in blossoming of AI start-ups.
Report of the Artificial Intelligence Task Force
In 2017, The Ministry of Commerce and Industry set up an AI Task Force which highlighted various sectors of importance for the AI regime and the challenges in adopting AI in India. It examined ten sectors, referred to as “domains of relevance to India.” These sectors were: Manufacturing, FinTech, Agriculture, Healthcare, Technology for the Differently-abled, National Security, Environment, Public Utility Services, Retail and Customer Relationship, and Education.
Noting that ‘AI should be seen as a scalable problem solver in India rather than only as a booster of economic growth’, the Task Force recommends:
(a) the creation of an inter- ministerial National AI mission to coordinate AI-related activities in India;
(b) enabling the setting up of digital data banks, marketplaces and exchanges to ensure availability of cross-industry data and information;
(c) participating in the elaboration of operation standards for AI-based systems;
(d) putting in place enabling policies to encourage and facilitate the development and deployment of AI-based products (such as data policies regarding ownership, sharing rights and usage, as well as tax incentives to support innovation);
(e) elaborating an AI education strategy to develop human resources with necessary skills;
(f) supporting re-skilling of the current workforce;
(g) participating in the international policy discussion on the governance of AI technologies; and
(h) leveraging bilateral partnership on the development of AI solutions for social and economic problems and for sharing best practices in regulation.
Noting that ‘AI should be seen as a scalable problem solver in India rather than only as a booster of economic growth’, the Task Force recommends:
(a) the creation of an inter- ministerial National AI mission to coordinate AI-related activities in India;
(b) enabling the setting up of digital data banks, marketplaces and exchanges to ensure availability of cross-industry data and information;
(c) participating in the elaboration of operation standards for AI-based systems;
(d) putting in place enabling policies to encourage and facilitate the development and deployment of AI-based products (such as data policies regarding ownership, sharing rights and usage, as well as tax incentives to support innovation);
(e) elaborating an AI education strategy to develop human resources with necessary skills;
(f) supporting re-skilling of the current workforce;
(g) participating in the international policy discussion on the governance of AI technologies; and
(h) leveraging bilateral partnership on the development of AI solutions for social and economic problems and for sharing best practices in regulation.
MietY Committees on AI
The Ministry of Electronics and Information Technology has established four committees to help encourage research in AI. They are headed by “directors of Indian Institutes of Technology (IITs), Nasscom and eminent researchers and include the following:
i. Committee on platforms and data for AI,
ii. Committee on leveraging AI for identifying National Missions in key sectors,
iii. Committee on mapping technological capabilities, key policy enablers, skilling, re- skilling and R&D
iv. Committee on cybersecurity, safety, legal and ethical issues.
The four committees are “presently studying AI in context of citizen centric services; data platforms; skilling, reskilling and R&D; and legal, regulatory and cybersecurity perspectives.
i. Committee on platforms and data for AI,
ii. Committee on leveraging AI for identifying National Missions in key sectors,
iii. Committee on mapping technological capabilities, key policy enablers, skilling, re- skilling and R&D
iv. Committee on cybersecurity, safety, legal and ethical issues.
The four committees are “presently studying AI in context of citizen centric services; data platforms; skilling, reskilling and R&D; and legal, regulatory and cybersecurity perspectives.
Government Collaborations & Funds
It is noteworthy that the developments pursued by the Government in AI are primarily in collaboration with private entities. For instance,NITI Aayog's collaboration with IBM for developing precision agriculture using AI for doubling farmers' income by 2020, by using a machine learning process along with different computer algorithms for crop classification and area estimation. Additionally, the Government of Andhra Pradesh collected information from a range of databases, and processed the information through Microsoft's Machine Learning Platform to monitor children and devote student-focussed attention on identifying and curbing school drop-outs.
Section -6
India remains a complex market. It is best to view India not as a single market, but as a series of interconnected regional markets where the regulatory and investment climate changes from one state to another.
Many states have created investment cells to attract business and have framed policies around them but the lack of coherence between the launch of new policy initiatives and policy stewardship leaves a lot to be desired. While most of the state civil servants acknowledge that they have to be innovative in their approach, there is a lack of clarity over what this means in practice. The ensuing implementation of reform policies is therefore likely to be heavily shaped by the culture. It has been the case that few states in India, receive the new policy ideas like Smart City Mission and Ayushman Bharat very attractive and scalable yet difficult to implement due to logistical and legacy issues.
To correct such perceptual anomalies and resistance, policy discussion needs to be tailored to the culture and existing economic opportunity present in the state.
Many states have created investment cells to attract business and have framed policies around them but the lack of coherence between the launch of new policy initiatives and policy stewardship leaves a lot to be desired. While most of the state civil servants acknowledge that they have to be innovative in their approach, there is a lack of clarity over what this means in practice. The ensuing implementation of reform policies is therefore likely to be heavily shaped by the culture. It has been the case that few states in India, receive the new policy ideas like Smart City Mission and Ayushman Bharat very attractive and scalable yet difficult to implement due to logistical and legacy issues.
To correct such perceptual anomalies and resistance, policy discussion needs to be tailored to the culture and existing economic opportunity present in the state.
Section -7
Many companies have attained stepladder growth by identifying the winds of change in policies, which sometimes open up new business models. Those companies are also able set the agenda for future industry reforms through sustained dialogues.
Policy agenda might be construed as a specific policy ask, but this is not always the case. Moreover, a good policy agenda is accomplished only after several revisions, lengthy discussions, and healthy debate. Therefore, in the best interest of industry, leading companies deliberate, discuss and voice their concerns to the policy makers and parliamentarians.
Given the potential for a seismic shift in our nation’s political and regulatory landscape, we believe; these are times when close attention should be paid to regulatory developments. In times to come, when regulatory supervision is only going to increase, more proactive companies would continue to bear the fruit of favourable and accommodating rules.
Policy agenda might be construed as a specific policy ask, but this is not always the case. Moreover, a good policy agenda is accomplished only after several revisions, lengthy discussions, and healthy debate. Therefore, in the best interest of industry, leading companies deliberate, discuss and voice their concerns to the policy makers and parliamentarians.
Given the potential for a seismic shift in our nation’s political and regulatory landscape, we believe; these are times when close attention should be paid to regulatory developments. In times to come, when regulatory supervision is only going to increase, more proactive companies would continue to bear the fruit of favourable and accommodating rules.
Section -8
The ripple effects of a tumultuous 2020 are likely to be even more enduring and impactful than the forces that initially triggered them. In the aftermath of Covid the government is determined to build the economy through incentives like PLI schemes to boost domestic manufacturing, amending FDI regulations, setting aside startup funds, accelerating digital transformation, building infrastructure and going ahead with its ambitious disinvestment and asset monetization plans.
All of this would entail administrations pulling regulatory and legislative levers to implement its priorities. We are here to help your business along with implications for how to respond to shifts. Numerous companies and hyper growth startups have been a beneficiary of our advocacies and interventions.
All of this would entail administrations pulling regulatory and legislative levers to implement its priorities. We are here to help your business along with implications for how to respond to shifts. Numerous companies and hyper growth startups have been a beneficiary of our advocacies and interventions.
Section - 9
We have reimagined the ways how the process of new age policy making would be.
Over the last decade, the government has taken a more professional approach to policy making.There has been a movement away from policy advice by generalists to one informed by concepts of risk, management, and delivery of services.
Our approach to policy advisory incorporates the perspectives of ministers as well as civil servants, since policy is the responsibility of both parties, and a product of their joint efforts. Bureaucrats, members of standing committees, joint parliamentary committees and opinion leaders can be persuaded to take a more proactive and participatory role in the emerging grey areas in policy dialogues.
Over the last decade, the government has taken a more professional approach to policy making.There has been a movement away from policy advice by generalists to one informed by concepts of risk, management, and delivery of services.
Our approach to policy advisory incorporates the perspectives of ministers as well as civil servants, since policy is the responsibility of both parties, and a product of their joint efforts. Bureaucrats, members of standing committees, joint parliamentary committees and opinion leaders can be persuaded to take a more proactive and participatory role in the emerging grey areas in policy dialogues.
Section -10
India remains a complex market. It is best to view India not as a single market, but as a series of interconnected regional markets where the regulatory and investment climate changes from one state to another.
Many states have created investment cells to attract business and have framed policies around them but the lack of coherence between the launch of new policy initiatives and policy stewardship leaves a lot to be desired. While most of the state civil servants acknowledge that they have to be innovative in their approach, there is a lack of clarity over what this means in practice. The ensuing implementation of reform policies is therefore likely to be heavily shaped by the culture. It has been the case that few states in India, receive the new policy ideas like Smart City Mission and Ayushman Bharat very attractive and scalable yet difficult to implement due to logistical and legacy issues.
To correct such perceptual anomalies and resistance, policy discussion needs to be tailored to the culture and existing economic opportunity present in the state.
Many states have created investment cells to attract business and have framed policies around them but the lack of coherence between the launch of new policy initiatives and policy stewardship leaves a lot to be desired. While most of the state civil servants acknowledge that they have to be innovative in their approach, there is a lack of clarity over what this means in practice. The ensuing implementation of reform policies is therefore likely to be heavily shaped by the culture. It has been the case that few states in India, receive the new policy ideas like Smart City Mission and Ayushman Bharat very attractive and scalable yet difficult to implement due to logistical and legacy issues.
To correct such perceptual anomalies and resistance, policy discussion needs to be tailored to the culture and existing economic opportunity present in the state.
