India and AI: The illusion of inclusion – Opinion News

By Srinath Sridharan

As world leaders convene in Paris for yet another high-profile artificial intelligence (AI) summit, the grand declarations of global cooperation and ethical governance will once again fill the air. Yet, beneath the diplomatic niceties, the hard truth remains — AI is now a battleground for supremacy. The US, China, and the European Union (EU) are working at securing their own dominance, setting rules that serve their strategic interests, and ensuring they dictate the terms of global AI governance.

India, a co-chair of the summit, finds itself at a crossroads. It has the ambition but not the strategy, the talent but not the infrastructure, and the intent but not the urgency. While its political leadership speaks of AI’s transformative potential, the country has no dedicated AI regulation, no overarching policy framework, and no meaningful global AI footprint. A Personal Data Protection Act exists, but AI governance remains a series of sporadic statements rather than structured policymaking. Without a clear regulatory stance, India risks being reduced to a passive player — an AI consumer rather than a contributor.

Jugaad, India’s famed frugal innovation, might work in some industries, but it is not a substitute for AI excellence. Global AI leadership demands scale, precision, and investment, not makeshift solutions. India cannot merely be an “affordable AI hub” for foreign companies. Without a serious push, India’s AI ambitions will remain just that — ambitions.

There is also the naïve assumption in some Indian policy circles that the global AI conversation is built on trust and mutual progress. This could not be further from the truth. If anything, AI is the newest theatre of geopolitical competition, with nations scrambling to establish their own regulatory strongholds while restricting access to rivals. In November 2023, the UK’s AI Safety Summit set the tone for global AI discussions, with Washington’s clear backing. It highlighted the dangers of uncontrolled AI systems, but instead of fostering true global cooperation, the summit further entrenched the dominance of a select few.

The US, traditionally a proponent of open-market technological expansion, has now embraced regulatory interventionism. Washington is tightening export controls, limiting foreign access to its AI models, and imposing licensing requirements for advanced systems. A select group of 19 allies — including a few but not all EU member states and some but not all North Atlantic Treaty Organization (NATO) partners — enjoy privileged access. The rest of the world, including India, faces stringent restrictions. This is AI geopolitics in action.

The EU has taken a different route, positioning itself as the regulatory authority of the AI age. Its AI Act, the most comprehensive framework yet, is designed to mitigate AI risks, enforce compliance, and embed ethical considerations into AI deployment. But this regulatory zeal could be a double-edged sword, potentially stifling European AI innovation while the US and China surge ahead.

China, meanwhile, has embraced an entirely state-controlled AI model. It ensures that AI aligns with national security imperatives, economic strategy, and political governance. For China, AI is a lever of state power.

And India? The government’s AI initiatives, while well-intentioned, lack the scale, funding, and urgency required to build a competitive AI ecosystem. This is not just an economic challenge — it is a national security risk. China is embedding AI into its cyber and defence systems, while the US is integrating AI into its military strategies. India, by contrast, has yet to formulate a cohesive AI-driven national security doctrine. This technological lag leaves the country vulnerable in future warfare, cyber threats, and intelligence capabilities. It is neither shaping the regulatory discourse nor influencing technological development at scale.

The issue is structural. India’s science, technology, engineering, and mathematics education system, despite producing numerous engineers, is deeply flawed with focus on rote learning. The National Education Policy is a step in the right direction, but its impact will take years, if not decades, to be felt. The broken pipeline from academic institutions to AI innovation means that India’s brightest minds often seek opportunities abroad, where research ecosystems are robust, funding is abundant, and bureaucratic hurdles are minimal.

Private capital investment in AI remains another glaring gap. Unlike the US, where tech giants fuel AI progress, or China, where the state ensures AI dominance, India’s private sector has been hesitant. Deeptech funding remains woefully inadequate, and without significant private sector involvement, India will struggle to build foundational AI models, semiconductor capabilities, or AI-driven industrial applications. Start-ups may be driving AI adoption, but they are not creating the next generation of AI breakthroughs.

India, with its vast population and growing digital footprint, needs a holistic national strategy that integrates AI across all sectors. Only with a comprehensive and strategic approach can India secure its rightful place at the global AI table.

The world’s AI future will be determined by who builds, who regulates, and who controls. The real question for India is not whether it supports AI innovation but whether it is willing to lead it. And as the saying goes, power is never given; it is taken. India must decide whether it is willing to take its place at the global AI table — or be content waiting for a seat that may never come.

The writer is corporate advisor & independent director on corporate Boards.

Disclaimer: Views expressed are personal and do not reflect the official position or policy of FinancialExpress.com. Reproducing this content without permission is prohibited.

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