As India stares at another general election, the creation of a ministry of AI is not just a matter of economic power but also a strategic necessity for national security in the face of technological warfare. The urgency is clear: without it, we risk falling behind in the global technology race and losing our demographic advantage amid economic hardship.
As McKinsey outlines, India's journey to a $30 trillion economy by 2047 depends on harnessing artificial intelligence (AI). The Ministry of AI would spearhead initiatives to integrate AI into vital economic sectors, oversee AI-driven projects that directly contribute to GDP, and collaborate internationally to maintain a competitive advantage.
However, if we fail to participate in this AI revolution, our demographic advantage could turn into a serious economic burden. Look at the UAE. In 2017, they set a global precedent by appointing the world's first AI minister, Omar Al Olama. That decision was a clear sign that we were embracing the AI era head-on.
Why can't India, with its wealth of tech talent and burgeoning AI potential, make a similar leap?
Many experts who believe in India's potential to become an economic superpower and a self-reliant nation express the urgency. “So the AI ministry would allow us to respond more quickly, given that a new economic value of $15.7 trillion will be generated by 2030. Otherwise, just as we pay for oil in dollars, we will also pay for artificial brains in the world.” future,” Umakant Soni, chairman of AIfoundry and co-founder of ARTPARK (AI & Robotics Technology Park), recently told me.
Daily encounters with AI
Unlike the Industrial Revolution, which took place over centuries, or the Digital Revolution, which took a few decades to adapt, the AI revolution is happening at an unprecedented pace and has a profound impact on every aspect of society and the economy.
On a recent train journey, as we passed by the Sangli station in Maharashtra, I was struck by a conversation floating from the berth opposite mine. A young student talked about the pride of Chitale Dairy-Pune and their pioneering RFID tags. “Imagine,” he said, “once AI steps in, they'll probably guess our shopping list before we even make it.”
Earlier this week, in a café in Delhi, I heard a few insurance agents struggling with the future. “AI could streamline routine claims so we can tackle the big fish,” one person said with a furrowed brow as he reached for his chai. “I need to find an AI course,” he said, accepting that the rules of their game were changing.
These hands-on insights into the impact of AI highlight the need for the Ministry to promote AI literacy through public outreach campaigns and develop targeted training programs to ensure all sectors can adapt to AI advances. Furthermore, the ministry could implement regulatory frameworks to ensure the ethical integration of AI in sectors such as retail and insurance, thereby safeguarding jobs and increasing efficiency. It would also be responsible for setting fair AI guidelines to ensure that AI is not used in ways that exacerbate existing inequalities, thereby addressing concerns about AI's social impact.
Imagine a Ministry of AI in India as a central nerve for:
- AI for the better: Applying AI to solve social challenges, from health to the environment
- Digital diplomacy: Shaping global AI policy to protect India's interests
- Advanced Manufacturing: Using AI to increase production efficiency and competitiveness
- Jobs and regulations: Create new tech jobs and establish fair AI guidelines
“A supermarket of problems”
Adam Smith talked about how scarce labor can drive up wages and fuel innovation. As AI reshapes economies, a similar shift is taking place.
Developed countries, facing slow GDP growth and an aging population, are embracing AI for productivity. The Indian situation is different. Our challenge? Transform our large, youthful workforce into a skilled, AI-ready group. This is where a dedicated Ministry of AI becomes crucial.
India's unique challenge and opportunity lies in its population. With over 1.4 billion people, India has the potential to build the world's largest AI-enabled workforce, especially among the 900 million youth in the 15 to 64 age group. However, for AI to be effective and ethical, it must be safe and fair, tailored to India's diverse needs. This can only be achieved through widespread adoption and alignment of AI, driven by feedback from this vast population, and ensuring that AI systems are developed in a manner that is inclusive and representative of India's social and cultural diversity.
“India has plenty of AI talent and data (it may not be in the most useful form right now), and critically, it offers almost a supermarket of problems (from access to healthcare to financial inclusion to educating 300 million schoolchildren on climate change) for the world,” says Umakant.
India's position in the global AI race is a paradox of potential. The image below is from a study published in the Harvard Business Review (HBR) highlights India as a key dark circle, indicating not only the rapid growth of data but also the challenges of effectively utilizing this vast resource. The study uses a 'TRAIN' index (top-ranked AI countries) to evaluate where 25 leading AI creator countries stand in the race for leadership.
Going beyond just potential
By establishing a Ministry of AI, India could strategically address these challenges and transform its vast data reserves into a powerhouse for innovation and economic growth. The data is there, but without good governance to channel it, the potential remains just that.
“With strengths in many dimensions, India is the country with the greatest upside potential. The country has the largest volume of mobile data consumption and is expected to top the world in data consumption by 2028. It already processes more digital payments than any other country in the world. in the world and has the third largest pool of AI talent. While it imposes restrictions on access to data, the rules for AI regulation are still fluid,” said Bhaskar Chakravorti, Ajay Bhalla and Ravi Shankar Chaturvedi in their 2023 report. HBR article titled “Mapping the Emerging Geography of AI.”
“We need to create a large domestic capital pool focused on AI, by setting up a large $10 billion public-private fund focused on AI, so that young entrepreneurs can get behind the issues in India.” Umakant added that given the diversity of data in India, India-built solutions will be robust, secure and equally applicable across Southeast Asia, the Middle East, the European Union and the US.
The message is clear: India's vast human resources could become a burden if they are not AI-ready. With an AI ministry, India can leverage technology not only for productivity but also to redefine the country's work, innovation and growth trajectory.
(Pankaj Mishra has been a journalist for more than two decades and is the co-founder of FactorDaily.)
Disclaimer: These are the personal opinions of the author.