Praxis Global Alliance, a global management consulting firm, has launched a comprehensive report titled “AI & DeepTech,” exploring the transformative landscape of AI and Deep Tech in India. This groundbreaking report reveals the extensive impact of these technologies, with the potential to disrupt 86% of companies and revolutionise 83 million jobs worldwide by 2027. Currently, the AI and Deep Tech sectors are valued at US$ 468 billion, indicating their immense potential.
The influence of AI and Deep Tech extends far beyond technological advancements. These technologies are reshaping industries, revolutionising work processes, and fundamentally altering business operations. With accelerated innovation rates, older companies face obsolescence, and a significant job churn of around 24% across various industries is anticipated. The report highlights a thriving ecosystem with over 26,000 tech startups in India, driven by affordable tech talent and robust collaboration with academic institutions such as IITs and IISc. This synergy fuels innovation and commercialisation across domains.
Key Insights from the Report Include:
⦁ Startup Ecosystem: India hosts over 26,000 tech startups, benefiting from affordable tech talent and collaboration with academic institutions, fuelling innovation and commercialisation.
⦁ Logistics Innovation: Collaborative robots (co-bots) are enhancing sorting capacities by 40% in logistics companies, achieving a rate of 1,000 parcels per hour with 99% accuracy.
⦁ E-commerce Impact: E-commerce generates up to three times more CO2 emissions compared to brick-and- mortar retailing, with plastic packaging playing a major role.
⦁ Automation: Advancements in Generative AI will necessitate the automation of 2,000 activities across 800 functions.
⦁ Cybersecurity: The rise of cyber-attacks will place approximately 300 billion passwords at risk annually.
⦁ Here are points based on the contents of the “AI and DeepTech Report – Praxis Global Alliance”:
⦁ Regulatory Landscape and Schemes: The regulatory landscape in India is evolving to support AI and Deep Tech innovations. Government schemes such as the National Deep Tech Start-up Policy (NDTSP) and the Next Generation Incubation Scheme (NGIS) are instrumental in propelling the AI and Deep Tech ecosystem. These initiatives provide funding, resources, and infrastructure, enabling startups to thrive and innovate in a supportive environment.
⦁ Regular vs. Deep Tech Startups: Deep Tech startups differ significantly from regular startups due to their longer research and development (R&D) phases. While regular startups focus on quicker market entry and scaling, Deep Tech startups invest extensively in R&D to develop breakthrough technologies. This extended R&D phase allows Deep Tech startups to unlock exponential potential, offering transformative solutions that can significantly impact industries and society.
⦁ Role of Academic Institutions: Academic institutions play a crucial role in fostering AI and Deep Tech ventures. Many Deep Tech startups are rooted in research conducted at universities and research institutes. These institutions provide a fertile ground for innovation, offering resources, expertise, and collaboration opportunities that help transform scientific research into practical, market-ready solutions.
burgeoning, with several players emerging across various themes such as robotics, biotechnology, and quantum computing. This vibrant ecosystem is characterised by a surge in investments and a growing number of startups developing cutting-edge solutions. The landscape mirrors the e-commerce boom of the mid-2010s, indicating a promising future for AI and Deep Tech in India
The report also highlights the transformative potential of these technologies across industries such as healthcare, climate change, energy efficiency, and cybersecurity. Valued at approximately $468 billion, the AI and Deep Tech market has seen a six-fold increase in investor exits from unicorns between 2018 and 2022, underscoring the sector’s robust growth and potential for substantial returns. The report emphasises the diversification and innovation inherent in AI and Deep Tech, covering key areas like biotechnology, AI, and advanced materials. Strong barriers to entry, such as complex R&D efforts and extensive IP protection, reduce competition and enhance long-term value.
With supportive government initiatives like India’s National Deep Tech Startup Policy and the SAMRIDH Scheme, along with a rich talent pool and academic collaborations, the investment landscape is promising. However, the report also highlights challenges, including high R&D investment, longer gestation periods, regulatory and compliance risks, market volatility, and technological uncertainty. Investors are encouraged to adopt a strategic approach to mitigate these risks and capitalise on the significant growth and innovation potential in AI and Deep Tech, additionally here has been a six-fold increase in the number of exits by investors in AI and Deep Tech unicorns from 2018 to 2022, indicating strong market traction and potential for substantial returns.
Government initiatives like the National Deep Tech Startup Policy (NDTSP), SAMRIDH Scheme, Domain-specific Centers of Excellence (CoEs), and GENESIS are democratising the DeepTech ecosystem. These initiatives are bolstering investments in Indian AI and Deep Tech, reflecting strong investor confidence beyond the e-commerce boom of the mid-2010s.
The report also highlights the application of AI and Deep Tech across various industries, including Agriculture, E- commerce, Consumer Goods, Automotive, Energy, Finance, Healthcare, Logistics, Manufacturing, and Pharmaceuticals.
Commenting on the launch of the report, Mr. Aryaman Tandon, Managing Partner & Cofounder at Praxis Global Alliance, said, “Over the last decade, India’s technological advancements have undergone a significant shift. The AI disruption has touched almost every sector, from Biotech and Mechanics to Aerospace and E-commerce. With this report, we aim to highlight various investment opportunities and government initiatives driving the Deep Tech and AI landscape.”
