AI- and Economy

AI- Artificial intelligence motivates, demotivates, helps us to improve the technology! That’s it?  No!  You know it directly – indirectly deals with us, our employment and our skills.

India is the fastest growing economy and it is a Labour-intensive country rather than Machinery but since the last few years we have been dealing with AI- Artificial intelligence. Obviously, there is a relation between AI and Economic growth. How? Let’s have a small look at it. AI is transforming economies and industries worldwide and presents an opportunity for India to achieve inclusive growth.  AI could revolutionize sectors like agriculture, healthcare and urban planning. The new AI for India 2030 initiative provides a structured approach to integrate AI across the nation’s socio-economic fabric. However, realizing this promise requires not only technological advancements but also robust frameworks and equitable access to resources. The AI for India 2030 initiative, co-hosted by the Ministry of Electronics and Information Technology of India, and the World Economic Forum’s Centers for the 4^th Industrial Revolution, India (C4IR India) (C4IR India), provides a structured approach to integrating AI across India’s socio-economic fabric.

Need of AI- For development –

AI is not only a tool for innovation but a strategy for solving India’s pressing socio- economic challenges. From improving agricultural yields to enhancing healthcare facilities, increasing manufacturing efficiency, Increasing good knowledge system AI has the potential to elevate productivity and drive growth in underserved areas. The AI for India 2030 Advisory Council has stressed the importance of the emerging technology in bridging these gaps, creating jobs and driving socio-economic inclusion.

AI and Banking –

India’s rapidly growing base of digital banking customers expects a greater section of service and products.  India is estimated to have the highest number of digital banking users in the world, as of 2022. The country also has the most diverse and dynamic customer base in the world, making inclusive financial growth necessary. Today’s customers can access various customized services and products at their fingertips, and banks are not exempt from these expectations. Competitive pressures also force banks to focus on improving productivity and deal with the ever-increasing risk management and compliance demands.

The India stack, a set of open APIs (application programming interface) for government, businesses and individuals to utilize India’s digital infrastructure, has deepened and widened the access to financial services in what was traditionally a cash-driven economy. India’s unique ID programme, Aadhaar, a consent-driven architecture where the unique ID/number can only be verified with the cardholder’s consent, has dramatically lowered the cost of confirming customer identity. For example, the population covered with bank accounts increased from 53% in 2015 to 78% in 2021.AI has created an ecosystem which has financial services truly digital. 

  AI and healthcare-

The Indian healthcare industry is expected to witness a strong growth backed by robust government and corporate investments. India, with its huge resources of unstructured medical data and population diversity, combined with the vast pool of human talent and mushrooming health-start-ups is perfectly positioned to embrace large-scale AI implementation.  AI can be effectively used to digitally transform the sector thereby resulting in affordable treatment and improvement of quality and accessibility of services.

The priority area for implementation of AI includes-

ü  patient care and experience.

ü  operations (appointment assistant, hospital patient flow management)

ü  R&D (drug development, disease simulation, drug repurpose) 

 Long-term partnership, shared risk models work best with AI providers in the healthcare sector. Special focus on health-care start-ups.

sector	Contribution
Consumer goods	90-95
Agriculture	60-65
Banking and Insurance	60-65
Telecom, Media, IT	50-55
Energy and Industries	50-55
transport and Logistics	50-55
Auto manufacturing and Assembly	40-45
Public sector	25-30
Healthcare	25-30

This shows AI contribution to various sectors.   This is the graphical representation of the contribution of AI in various sectors.

The ultimatum of the article is AI & Economy, their contribution and their impact, effect and positive usefulness for growth and development of economy.