Shortage of AI leadership in Indian business

Artificial Intelligence (AI) is revolutionising industries worldwide, offering unprecedented opportunities for innovation, efficiency, and economic growth. However, in India, a critical shortage of strong AI leadership is emerging as a significant barrier to fully leveraging these opportunities.

This widening gap is not merely a minor hiccup but a substantial roadblock with far-reaching implications. This is precisely the reason why industries desperately require evolved AI curriculums to not only enhance individual capabilities but also ignite industry-wide innovation, driving efficiency, informed decision-making, and unprecedented growth.

According to the World Economic Forum, by 2025, AI could contribute up to $15.7 trillion to the global economy, with $957 billion of that potential impact in India alone. Yet, as per our recent survey with a sample size of approximately 2,500 respondents, it was found that 47% of senior executives at leadership levels are beginners in AI knowledge. This suggests a significant gap in AI proficiency among top leadership, highlighting the need for enhanced training and upskilling. It's critical to identify the key areas of skill development and investment for industry stakeholders to be able to build a strategic roadmap to align with AI advancements and help ensure India can capitalise on AI-driven growth, maintaining its competitive edge on the global stage. India, by far, is a leading talent market, and innovation and competency in AI give us an advantage to dominate global job markets.

In India, AI adoption rates have increased by over 45% in the past three years alone, according to a survey by PwC India. This rapid adoption is transforming sectors such as healthcare, finance, retail, and manufacturing, leading to significant improvements in operational efficiency, customer experience, and decision-making processes. For instance, AI-driven predictive maintenance in manufacturing can reduce equipment downtime by up to 30%, and in the retail sector, AI-powered personalisation can increase sales by 20-30%.

However, the true potential of AI can only be unlocked through strategic planning and implementation, which requires skilled leadership. Effective AI leaders means being able to integrate AI technologies into business strategies, ensuring that AI initiatives align with organisational goals and expected outcomes.

Despite the clear benefits, India faces significant challenges in developing AI leadership. One of the primary issues is the lack of comprehensive AI education and hands-on learning opportunities. While there are several AI courses available, many are theoretical and do not provide the practical skills needed to lead AI projects. Moreover, traditional sectors like manufacturing and agriculture are slow to adopt AI, partly due to cultural resistance and a lack of understanding of potential benefits.

Additionally, the pace of technological change has outpaced the speed at which traditional educational institutions update their curricula. This lag results in a workforce that is not adequately prepared to handle the demands of modern AI applications. Furthermore, many businesses, particularly small and medium-sized enterprises (SMEs), lack the resources to invest in AI training and development for their employees.

If you think skilling is the only challenge, you are probably wrong. By neglecting and underestimating the power of strong AI leadership, we are looking at long-term drawbacks for India's economy. Without skilled leaders to guide AI adoption, businesses risk falling behind in innovation, losing competitive advantage, and missing out on significant revenue opportunities. According to Accenture, companies that invest in AI and human-machine collaboration could boost their revenue by 38% by 2022. However, without proper leadership, these potential gains may remain unrealised.

Moreover, the lack of AI leadership hampers the development of a robust AI ecosystem in India. It limits the ability of Indian businesses to compete globally, attract international investments, and collaborate on cutting-edge AI research. This gap not only affects individual businesses but also poses a threat to the country's overall economic growth and its position as a global technology leader.

To bridge this gap, it is essential to incorporate AI modules into higher education and government skilling programmes. Universities and technical institutes should offer specialised AI courses that combine theoretical knowledge with practical skills. Government initiatives, such as the IndiaAI, should focus more on creating AI Centres of Excellence and funding AI research and development.

Upskilling current leaders is another equally important aspect. Companies must invest in continuous learning programmes and workshops to help their executives stay updated and relevant in the industry. Collaborating with global experts and organisations can also provide valuable insights and best practices for developing strong AI leadership.

However, government support remains the most crucial aspect in this endeavour. Policies that incentivise AI research and development, provide tax benefits for AI investments, and create a conducive environment for AI start-ups, can drive significant progress. Public-private partnerships can also play a pivotal role in fostering AI innovation and leadership.

Several Indian companies have successfully implemented AI, serving as exemplary models. For instance, Tata Consultancy Services (TCS) uses AI to optimise supply chain operations, resulting in a 20% reduction in logistics costs. The government’s AI initiative in agriculture, where AI-powered systems help farmers with crop health monitoring and yield predictions, demonstrates the transformative potential of AI when guided by strong leadership.

Furthermore, Bhashini by the Indian government is a testament to how AI can be harnessed to bridge language barriers and enhance communication. Bhashini is an AI-based language platform that can translate and transliterate content in real time across various Indian languages. This initiative not only promotes inclusivity but also opens up new avenues for businesses to reach a broader audience, thereby fostering economic growth.

Senior executives should look to these examples for inspiration and practical insights. Adopting best practices, such as fostering a culture of innovation, investing in AI talent, and staying informed about global AI advancements, can help develop robust AI leadership within their organisations.

The critical shortage of AI leadership in Indian business is a pressing issue that demands immediate attention. By integrating AI education into higher learning, upskilling current leaders, and fostering government support, India can develop the necessary AI leadership to drive innovation, economic growth, and global competitiveness. The long-term benefits are clear: enhanced business efficiency, increased revenue, and building India for the world to see.

This article is authored by Mayank Kumar, co-founder and managing director, upGrad.