India among top 15 nations leading global AI race

India ranks 15th among the top 25 nations that are leading the artificial intelligence race, according to research by Tufts University’s Fletcher School. The U.S.-based business school's top-ranked AI nations (TRAIN) scorecard mapped the emerging geography of AI leadership across four main drivers: data, rules, capital, and innovation.

India was ranked 14th among the top 25 nations in terms of data volume and complexity of the core resources used to train and improve algorithms.

In terms of rules around the new and emerging technology, India ranked lowest in the list of 25 nations, ahead of China only. In the TRAIN scorecard, countries were ranked based on open data participation, data governance policies, and cross-border data flows.

In terms of human, financial, diversity and digital foundations for building AI, India was ranked 6th behind the US, China, Japan, South Korea and Germany.

Innovation in AI models, techniques, creative sourcing of data, and new applications is one category where India ranked the best at third behind only the U.S. and China.

When scores across the four drivers were combined equally into a final TRAIN score, the country at 46.7 score ranked 15th out of 25 nations leading the AI race. The list was topped by countries like the US, China, and UK, with the cumulative TRAIN score of 90.7, 68.5, and 58.8, respectively.

Japan (57), Germany (56.4), France (54.9), Canada (54.9), Australia (53.9), South Korea (53.8), and Sweden (51.5) were other countries in the top 10.

Of all the drivers that are crucial for AI leadership, the changes in accessible pools of data are likely to have the greatest impact on the positionings across the 25 countries in the near to medium term, the report suggests.

One key insight which emerged is that the fastest-growing data pools — like those in India, Indonesia, South Africa, and Nigeria — are also the least accessible.

"Companies would do well to watch for changes in data regulations and policies around the world, while policymakers must balance retaining AI competitiveness in innovation while protecting the public," the report adds.

While AI has been a hotly debated topic in investor, tech, and policy circles for some time, the year 2023 will be remembered as the year it exploded into the public’s consciousness.

India is poised to witness a substantial increase in its Gross Domestic Product (GDP) by an estimated $1.2-1.5 trillion over the next seven years by the adoption of Gen AI technology and its applications across sectors, the latest EY India suggests. “The cumulative impact on GDP may range from $1.2 trillion to $1.5 trillion, contributing an additional 0.9% to 1.1% in annual CAGR.”

The report, titled 'The AIdea of India: Generative AI’s potential to accelerate India’s digital transformation,' projects that by fully leveraging Gen AI technology across various sectors, India could potentially contribute $359-438 billion in the fiscal year 2029-30 alone. This reflects a 5.9 - 7.2% increase over the baseline GDP.