Generative AI Reshaping Business Strategies in India: Balancing Transformation and Cost

How GenAI is Rewriting Business Strategies Across Sectors

They further discussed how businesses could confidently adopt AI while balancing the promise of growth with security concerns Artificial intelligence (AI) has driven tech innovations for decades. Its India journey started in the early 2000s when algorithms were incorporated into computing hardware. By the 2010s, AI usage was more prevalent due to the rise of big data analytics and AR-VR applications. When OpenAI launched its GenAI (generative AI) application, ChatGPT, in 2022, it was a giant leap towards human-like creativity, conversational power and deep analysis of data and industry trends. The markets are now flooded with GenAI tools, offering various enterprise-level solutions to maximise efficiency and optimise costs. Industry experts say this is merely the beginning. The GenAI boom will transform all businesses by improving processes, enhancing customer experiences and redefining decision-making. According to a recent McKinsey Global Survey on AI, 65% of respondents said their organisations regularly use GenAI, nearly double the percentage from the previous survey conducted less than a year ago. While GenAI can drive business growth, one has to deal with multiple risks like data breaches, deep fakes and biases. So, enterprises must craft a well-balanced AI strategy to reduce costs, create value and increase trust in organisations by mitigating those risks. To explore it further, Inc42 and Oracle hosted the final edition of their two-part series titled Boardroom: Powering Data With AI. Held in Delhi on August 22, the roundtable brought together 10 tech leaders from diverse sectors (travel tech, healthtech, manufacturing, electric vehicles and more) and deep-dived into the theme - Unlocking Data & AI Potential: Charting a Path to Innovation and Growth. Moderated by Sameer Dhanrajani, CEO at AIQRATE & 3AI, the session was attended by: Dhanrajani started the discussion by emphasising that AI-GenAI was not a sudden phenomenon but a long continuum. He referred to the evolving debate over human versus AI, questioning this new-age technology's capabilities and potential. "With machines growing smarter and stronger, a time will inevitably come when human creativity and ingenuity have to confront a stark reality. We have long anticipated the possibility of machines surpassing human abilities, but will that happen?" he pondered. As the conversation unfolded, Dhanrajani delved into the widespread adoption and application of AI-GenAI across industries, assessing how deeply it would be embedded into modern businesses. Shedding more light on industry use cases, Rungta of Absolute detailed how AI transformed the platform's on-ground advisory services for farmers, resulting in speedy reach and significant cost-cutting. "Earlier, we spent a lot of time and money reaching the farmers in person and helping them use our agronomic solutions. But now we integrate satellite images and weather data to offer AI-powered insights, which are accurate and time-critical," he explained. When it comes to agritech, time-sensitive information is critical, helping farmers cope with weather patterns, pest attacks, soil conditions, crop health monitoring and more in real time. As AI applications are now extensively used in various areas of farming, farmers can optimise their harvests and gain a competitive edge, pointed out Rungta. The shift towards a tech-led approach at the grassroots is significant, given that India's agriculture sector contributes 18.2% to the country's GDP and employs nearly 45% of the workforce. Yatra's Shakti Goel, a tech veteran with more than two decades of experience, also highlighted the remarkable journey of AI, from Lotus spreadsheets to Oracle databases to the advent of GenAI. According to him, AI has long been a trusted tech tool supporting human decision-making. But its potential to revolutionise business strategies has not been fully realised until now. He cited how Coca-Cola introduced its cherry flavour in the US, where IoT-enabled dispensers allowed customers to add the flavour to their drinks. More interestingly, the initiative was based on data analytics instead of an on-ground market survey. Goel revealed an interesting use case when talking about Yatra's AI journey. Digging into its hotel data, it realised that it was selling a significant chunk of Hilton bookings. But Yatra did it for third parties and not directly for Hilton. Armed with this insight, the company approached Hilton with a proposal to supercharge their partnership. Gaurav Bagga of Pristyn Care (a startup specialising in elective surgery) discussed how modern healthcare providers can leverage GenAI to improve patient experience. "We use GenAI to analyse and improve how our care co-ordinators engage with patients. The data gathered from these interactions allows us to prioritise action items so that care coordinators can make informed decisions and deliver on their commitments," he said. AI has immense potential to transform businesses. But it also comes with significant risks such as data breaches, hallucinations (inaccurate/misleading assumptions), biases and lack of compliance. According to a 2024 Orca Security report, 58% of organisations store sensitive data in the cloud. This data could leak if used for AI-GenAI training or validation purposes, leading to a breach of confidentiality and other damaging consequences. Orca Security report So, how can businesses confidently adopt AI-GenAI, balancing growth and efficiency with security concerns? "It is not a one-size-fits-all solution. A single large language model (LLM) may not suit every industry. To achieve higher accuracy, you need a customised model built on your data, rather than relying solely on generic models," said Palanivel of Oracle India. He also mentioned Oracle's Retrieval-Augmented Generation (RAG) technology in this context, which enhances the accuracy and effectiveness of AI applications by integrating retrieval (of training data) and knowledge augmentation (without retraining) in a unified system. This mechanism helps mitigate risks like hallucination, misinformation and bias, which occur in purely generative models that cannot reference knowledge sources outside training. Other experts on the panel also voiced their concerns about open-source AI applications, trained on widely available data that may lack accuracy or a neutral, cognitive approach needed for reliable GenAI functions. Nevertheless, they have a cost advantage. Startups, for instance, may not find it feasible to build custom LLMs and must opt for pay-and-use models. It will take time to gain trust in these third-party systems. A TCS survey found that 59% of corporate functions have AI implementations in progress or completed these projects. However, only 20% of corporate leaders feel well-positioned to leverage AI to their strategic advantage. Cloud providers are stepping up data security, while businesses will increasingly depend on high-quality and customised data for enterprise usage. The big question remains, though: Will artificial intelligence outsmart humans? Until we get closer to creating artificial general intelligence that can function on a par with a human's cognitive capabilities, the answer is - no. In the foreseeable future, the new technology will continue to complement human capabilities, but it will also redefine the future of jobs. To begin with, AI-GenAI will enhance human productivity by automating repetitive and time-consuming tasks. Again, AI and deeptech will continue to create new opportunities, from prompt engineering and agent-specific expertise (think of Copilot skills) to AI advisory roles, LLM development and more, our panellists said. In essence, the future of work will be driven by the three A's - AI, analytics and automation. So, enterprises and individuals must strategise and develop skills to meet the requirements of a new epoch.

AI adoption in India driven by transformative potential balanced by cost sensitivity reveals Deloitte's latest report

Over 95 percent of businesses surveyed feel pressure from external and internal stakeholders to adopt GenAI, further complemented by 89 percent expecting it to transform their organisation and 66 percent expecting it to transform industries as a whole within three yearsNearly 50 percent of Indian companies prioritise pricing over performance when adopting GenAI models, unlike global counterparts that prioritise overall performanceDespite growing investments in GenAI, it accounts for less than 20 percent of overall AI budgets for over 50 percent of the organisations In an era of rapid technological advancements, adopting Artificial Intelligence (AI) has become essential for companies to maintain a competitive edge. Deloitte's third wave of the State of Generative AI Report (India Perspective) sheds light on the distinct priorities of Indian organisations as they embrace Generative AI (GenAI). Per the survey analysis, Indian participants are highly price-sensitive when adopting GenAI models, highlighting the challenge of balancing innovation with affordability in a price-sensitive market. Nearly 50 percent of Indian respondents cited pricing as the primary factor, followed by the model's overall performance and flexibility. Meanwhile, global companies emphasized overall performance, trust and flexibility, with pricing following later. The report projects strong optimism about GenAI's transformative potential, with ~89 percent of surveyed participants confident it will reshape their organisations within the next three years. Notably, 70 percent of respondents expect this transformation to occur within one to three years within their organisation. Meanwhile, 48 percent of respondents expect similar transformation across their industry, highlighting the growing urgency across sectors. Additionally, over 95 percent of respondents report internal and external pressure to adopt GenAI. Despite progress in data management, strategy and tech infrastructure, where over 40 percent of respondents reported high levels of preparedness to adopt GenAI, the report reveals considerable gaps. In risk, governance and talent, only 25 percent of participants admitted to being highly prepared in these critical areas. This shortfall signals an urgent need for organisations to bolster their capabilities to fully utilise GenAI's transformative power. GenAI has bolstered productivity and improved efficiency, with 42 percent of respondents indicating this as the most important benefit their organisation has achieved through GenAI initiatives. This aligns with initial expectations of GenAI, where 61 percent cited improved efficiency and productivity as a key benefit desired. This is partially made possible with an in-depth integration of GenAI into the organisation's functions and processes, which 34 percent indicated is the key action to drive value. Speaking on the findings from Wave 3 of the report, S. Anjani Kumar, Partner, Deloitte India, said, "Generative AI has the potential to redefine the future of work by unlocking unprecedented efficiencies, productivity and innovation across industries. However, to fully harness its transformative power, CEOs and senior leaders must prioritise its adoption and address the inherent challenges head-on. This means moving beyond surface-level understanding and tackling obstacles such as implementation complexities, investment, risk management and talent gaps. By fostering a culture of continuous learning, enhancing governance frameworks and ensuring robust risk mitigation strategies, organisations can accelerate GenAI adoption and fundamentally reshape their business models for sustained growth and success in a rapidly evolving landscape." Key findings from the survey Organisational urgency: Over 95 percent of respondents feel the pressure to adopt GenAI, driven by internal and external forcesPreparedness for GenAI: While participants exhibit higher readiness in data management, strategy and tech infrastructure, there is a notable need for improvement in risk & governance and talent.Investment trends: Investments in GenAI are on the rise, focusing on data management, cloud consumption and AI/ML capabilities. However, less than 20 percent of the overall AI budget is currently dedicated to GenAI in over 50 percent of the organisations surveyed.Barriers and challenges: One of the primary roadblocks with GenAI is using sensitive data in models, with 68 percent indicating it as a significant concern. Other key barriers to GenAI adoption include data privacy and security concerns, with 65 percent of respondents citing significant challenges. Firms with less AI expertise struggle with talent acquisition and skills development, while more experienced companies face implementation hurdles. As India's GenAI landscape evolves, businesses must accelerate adoption and bridge critical talent development and risk management gaps. The potential is vast, but achieving true transformation demands a holistic approach to AI readiness.