India is the use case capital of the world: Satya Nadella

Artificial Intelligence (AI) is no longer a futuristic vision; it is a present-day force redefining economies, industries, and governance. For India, a nation of vast diversity and unparalleled potential, AI represents both a challenge and an opportunity. This duality took center stage at the Delhi leg of Microsoft’s AI tour, where Satya Nadella, CEO of Microsoft, and Jitin Prasada, Union Minister of State for Commerce and Industry, engaged in a fireside chat. With Microsoft committing $3 billion to expand its AI and cloud infrastructure in India, the conversation underlined the nation’s pivotal role in the global AI landscape.

“In India, AI isn’t just being talked about; it’s being applied—with rapid diffusion and impact,” said Nadella. Citing use cases across agriculture, healthcare, education, and manufacturing, he described India as the “use case capital of the world,” a nation where AI solutions are not only developed but scaled for global application.

AI’s promise and India’s grassroots

India’s immense potential lies in its ability to adapt AI for grassroots transformation. The minister highlighted how AI can empower rural India, bridging gaps between citizens and governance. “The government, through AI, will now talk the people’s language,” he said, referencing projects like Jugalbandi, where rural farmers use AI tools to access government programmes in local languages.

Nadella built on this, recounting his experience with the Jugalbandi demo. “A farmer in rural India, conversing in their native language, navigated government programmes with the help of AI,” he said. “Putting that agency at the grassroots, back in their hands, making it accessible, that's a pretty unique contribution,” he added.

This grassroots approach aligns with India’s broader strategy of leveraging its billion internet users and 700 million smartphone owners to drive inclusive growth. Prasada summarised it aptly, saying, “We are the talent capital, the use case capital, and the intellectual capital. You can’t have big tech solutions in drawing rooms and big cities unless it transcends to the last mile and transforms the lives of Indians residing in villages. That’s where we’re looking at.”

A governance conundrum

As AI reshapes industries, it also raises critical governance questions and the challenges posed by emerging AI technologies are becoming increasingly evident. In India’s last general election, a deepfake of the Home Minister went viral. Although, these are real challenges, the minister said that the government doesn’t want to over-regulate to stifle innovation. While the government has adopted a “pro-innovation” stance, relying on self-regulation and existing laws, Prasada made it clear that tougher legislation could follow if necessary.

Nadella agreed, emphasising the role of trust in AI adoption. “Trust is not something we claim; it’s something we earn,” he said. Microsoft, he added, is committed to principles of AI safety, security, and privacy. “When you’re building technologies that can change the world, you must build them responsibly. We have to take our own responsibility of scaling all of this in such a way that unintended consequences should not outrun benefits.”

By focusing on self-regulation and collaborative solutions, the country aims to harness AI’s potential without stifling innovation. The balance between innovation and accountability is essential, noted the minister.

A call to action

One of the most compelling ideas to emerge from the conversation was the concept of a “virtuous cycle,” as Nadella called it. “India is unique in combining digital public goods like India Stack with entrepreneurial energy, talent, and demographics,” he said. “This synergy might become the new growth model for nations striving for development.”

The $3 billion investment Microsoft announced reflects this optimism. But Nadella stressed that true success lies in creating local value. “Our mission is to empower every person and organisation in India. That means small businesses becoming more productive, the public sector becoming more efficient, and Indian companies competing globally—all through value-added innovation, not just consumption of technology.”

Sharing an anecdote, Nadella highlighted the approach for AI as a dual gear system: innovating for the future while creating impact today. “That’s the formula for all of us,” Nadella said. “Ambition for the impossible paired with action on the possible.”

For India, this duality—balancing grassroots impact with global ambitions—will define its AI narrative. As it navigates challenges of governance, trust, and scalability, India has the opportunity to set a global benchmark for inclusive and responsible AI.