New Delhi, India – Despite its technological prowess, India is lagging behind in the global Generative AI (GenAI) race. While many Indian startups have launched AI-enabled offerings, they have yet to deliver breakthrough innovations. According to Kailash Nadh, Chief Technology Officer at Zerodha, Indian startups are struggling to create unique selling propositions (USPs) because large language models (LLMs) like ChatGPT are available to everyone.

The lack of proprietary AI systems and the reliance on open-source models have hindered India’s progress in the GenAI race. Nadh emphasized the importance of open-source software for widespread innovation and equitable access, but also noted that the performance improvements of LLMs have plateaued since 2023.

India’s potential in AI governance and digital transformation is significant, but the country faces challenges in data readiness and talent development. Only 15% of surveyed enterprises in India have implemented GenAI in production, and 23% report being unprepared for AI deployments.

The EY India report projects that GenAI adoption could transform 38 million jobs in India by 2030, boosting productivity by up to 5.43%. However, the slow adoption rate and early-stage implementation highlight the need for increased investment in talent development and public-private collaborations.

India’s journey in the GenAI race is still in its early stages, and addressing these challenges will be crucial for the country to catch up and become a global leader in AI innovation.