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India can lead the AI agent wave

The AI revolution is moving fast, transforming industries with smart automation and personalised digital experiences. Soon, millions of AI agents will function as digital workers, making tasks faster, easier, and more efficient.

For example, OpenAI’s ‘Operator’ acts like a supercharged assistant, handling everything from form-filling to travel booking — even creating memes. Deepseek’s open-source model promises to make AI more accessible and affordable.

India’s IT sector has a massive opportunity to harness this wave. AI agents are set to reshape business and technology — offering smarter, faster solutions. Let’s explore what they are, how they will drive change, and what India must do to stay ahead.

AI agents

AI agents combine AI, software, tools, and data to automate tasks and deliver personalised outcomes. They are set to replace traditional software models, empowering businesses, small enterprises, and consumers while driving innovation and growth.

These agents will revolutionise usage of web-based applications like customer relationship management (CRM) tools, enterprise resource management (ERP) and everyday apps like Zoom, turbo-tax, etc. Currently part of the $300 billion Software as a Service (SaaS) market, these applications are expected to grow to $1.3 trillion by 2030.

AI agents are set to transform the SaaS model, shifting it from ‘Software as a Service’ to a ‘Service as Software’ approach. This transformation will focus on delivering user-centric, highly personalised solutions while eliminating reliance on specific software providers. Microsoft CEO Satya Nadella says, AI agents have the potential to disrupt and redefine the SaaS landscape.

Imagine no longer paying hefty annual subscriptions for customer data management software — instead, you pay based on the actual leads converted into real orders. This outcome-driven model not only reduces costs but also ensures businesses pay for tangible results, making it a smarter and more efficient way to manage resources.

Three examples

Let us understand how AI agents will change the current businesses.

Renting a house: Human property agent vs AI property agents: Searching for a rental home has traditionally involved property agents who rely on conversations to understand preferences, use local knowledge, and conduct physical visits to shortlist options. While effective in the past, this process is time-consuming and depends heavily on individual judgment.

AI agents are transforming this experience. A digital rental assistant can collect user preferences, refine them using past behaviour, and leverage algorithms to source options from multiple platforms. It ranks properties, offers virtual tours, compares prices, and even handles lease agreement filing — all with unmatched speed, accuracy, convenience, and focus on your best interest. AI agents eliminate the inefficiencies of traditional methods, making them the smarter choice for finding your next home.

Making e-commerce equitable: In e-commerce, AI agents serve as neutral intermediaries, promoting fairness and inclusivity. Unlike dominant e-commerce platforms that monopolise the market, AI agents empower small businesses and consumers by enabling fair and equitable interactions. India’s ONDC initiative showcases this potential, driving inclusive growth and levelling the playing field in e-commerce.

Transforming import-export business: Elex, a toy manufacturer, leverages AI agents to transform its global toy production and distribution through three strategic capabilities:

Automation: AI agents eliminate manual effort across the value chain by autonomously managing inventory updates, processing orders, and handling export documentation. They continuously monitor production lines to detect quality issues and trigger maintenance alerts, reducing human intervention in routine operations.

Orchestration: The agents coordinate complex workflows by seamlessly connecting supplier data, production systems, and distribution channels. They synchronise multiple processes — from component procurement to regulatory compliance — while orchestrating data flows between different countries and business units to ensure smooth operations.

Increased choice: AI agents expand decision-making possibilities for Elex. They analyse numerous supplier options, simulate various pricing scenarios, and evaluate quality. This enhanced analytical capability enables Elex to evaluate more alternatives for sourcing, manufacturing, and market expansion, leading to optimal business decisions.

Through these capabilities, AI agents enable Elex to operate with greater efficiency, agility, and strategic insight in the global toy market.

Seizing the opportunity

As businesses shift from traditional software to AI-powered tools, India has a unique opportunity to participate in the AI revolution.

The integration of AI agents into SaaS platforms offers India an unprecedented opportunity for non-linear growth.

This could elevate the country from being an outsourcing hub to a leader in AI innovation. Indian firms like TCS, Wipro and Infosys doing software development for big US and European business are already insiders to business processes and are in the best position to enter the value-add game of developing AI agents for them — rightfully positioning itself as the ‘use case capital of AI’ to efficiently handle business processes while improving accuracy and reducing costs for global firms.

Building a skilled talent pool requires significant investment in education and training to equip the workforce with AI expertise.

Scaling AI infrastructure tailored to India’s unique needs while keeping costs low is essential for widespread adoption.

The fragmented data ecosystem poses another hurdle, making it crucial to promote data sharing, establish centralised data lakes, and strike a balance between privacy and innovation. Strong public-private collaboration, supported by government incentives, can further accelerate India’s progress in the AI revolution, ensuring sustainable growth and innovation.

The time to seize this opportunity is now — India must act decisively to lead the next wave of the AI revolution.

Mital is the General Manager: R&D – AI at Hitachi, Bengaluru; Srivastava is the founder, Global Trade Research Initiative. Views are personal

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