The total investment into AI start-ups in India reached $3.24 billion last year, the fifth highest globally, Stanford University's AI Index Report said. EPA
The total investment into AI start-ups in India reached $3.24 billion last year, the fifth highest globally, Stanford University's AI Index Report said. EPA
The total investment into AI start-ups in India reached $3.24 billion last year, the fifth highest globally, Stanford University's AI Index Report said. EPA
The total investment into AI start-ups in India reached $3.24 billion last year, the fifth highest globally, Stanford University's AI Index Report said. EPA

How India is making efforts to localise AI technology to boost its digital economy


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This month, the chief executive of Ola – a ride-hailing app that competes with Uber in India – unveiled a new artificial intelligence (AI) company focused on building a complete Indian AI system from scratch.

It is something that is a relatively new territory for the country, as it strives to make AI India-centric.

Many of the existing AI models that are being used globally are largely based on the English language and rooted in Western culture, founder Bhavish Aggarwal, who is also the chief executive and co-founder of Ola, said during a live-stream of the launch of the new AI company, called Krutrim.

It has been fully developed for India specifically and can understand India’s 22 official languages and generate content in 10 of them.

Mr Aggarwal demonstrated some of the technology's capabilities by asking Krutrim, which means “artificial” in Sanskrit, to write a poem in Bengali about the monsoon rains.

Billions of pieces of data that are unique to India have been used to create Krutrim, which will be fully open for use next month, the company says.

“AI will define the future paradigms of economy and culture,” says Mr Aggarwal. “And to become a true leader of the world, India needs to become a global leader in AI.”

Krutrim has been designed to have uses ranging from education to business communications, it says.

The company's launch comes amid AI’s wide use globally and developments which have prompted growing calls and concerns around the regulation of AI.

This year, there have been breakthroughs globally – as well as controversies – with the rise of generative AI, which is capable of creating new content including text, videos, images and audio.

ChatGPT is the best known example of this. Developed by AI research company OpenAI, ChatGPT is a chatbot that engages in conversational dialogue and can generate text to meet users' specific requirements.

Such strides in technology present an opportunity to create efficiencies and boost economies, analysts say.

If India fully capitalises on generative AI technology, the country has the potential to add $359 billion to $438 billion in the financial year between April 2029 and March 2030, which would be a 5.9 per cent to 7.2 per cent increase on its baseline gross domestic product, a report by EY said.

It says that most of this impact will come from AI's use in sectors including IT, financial services and retail.

The Indian government has highlighted AI as a significant enabler of the country's digital economy.

Investment is flowing into the sector. The total investment into AI start-ups in India reached $3.24 billion last year, the fifth highest globally, Stanford University's AI Index Report said.

“AI is pervasive across Indian organisations, influencing both business functions and industry sectors, as they increasingly embrace the transformative power of AI to drive innovation and enhance overall operational efficiency,” says Sameer Dhanrajani, chief executive at AI consulting and advisory firm AIQRATE and at 3AI, a platform for AI and analytics leaders and professionals.

However, besides using AI, India, which has a thriving IT sector, also has an opportunity to be a part of its development and create systems that are designed for the country of more than 1.4 billion people, with unique and diverse cultural aspects and languages. While OpenAI and Google do have Indian language databases, they largely rely on English data.

That is where companies like Krutrim step in.

India has been embracing AI, and a wide range of start-ups in the country have emerged offering AI solutions as they try to tap into the trend.

Companies including Krutrim are hoping to take this a step further by developing their own foundational model, known as a large language model (LLM).

“A lot of companies – both start-up and large companies – are racing to do that,” says Jaspreet Bindra, founder of consultancy The Tech Whisperer.

Other companies in India that are engaged in the task of creating LLMs include Tech Mahindra, one of the world’s largest IT services companies.

Called Project Indus, Tech Mahindra's aim is for its model to understand 40 different Indian languages. Beyond India's 22 official languages, there are dozens of other major languages.

Start-up CoRover.ai this month announced the launch of its Indian generative AI platform, BharatGPT, for which it has tied up with Google Cloud as a technology partner.

Another start-up, Sarvam AI, based in Bengaluru is also building LLMs.

“There has been a lot of discussion around India-centric models,” says Mr Bindra. “The inspiration from that comes from countries that have already created their own models – China has over 100 such models.

“The UAE pleasantly surprised the world by creating Falcon and then Jais, which are world-class open-source AI and LLMs. Therefore, the question in India is that why can’t India – with all its IT prowess, with all the human resources that it has – create its own LLMs?”

  • An official at the launch of Mohamed bin Zayed University of Artificial intelligence in Masdar City, Abu Dhabi. AI is central to the UAE's economic growth agenda. Chris Whiteoak / The National
    An official at the launch of Mohamed bin Zayed University of Artificial intelligence in Masdar City, Abu Dhabi. AI is central to the UAE's economic growth agenda. Chris Whiteoak / The National
  • From left, Dr Sultan Al Jaber, Dr Ahmad Al Falasi and Omar Al Olama at the launch of the university. Chris Whiteoak / The National
    From left, Dr Sultan Al Jaber, Dr Ahmad Al Falasi and Omar Al Olama at the launch of the university. Chris Whiteoak / The National
  • The university has teamed up with IBM to open a research centre at its Masdar City campus. Chris Whiteoak / The National
    The university has teamed up with IBM to open a research centre at its Masdar City campus. Chris Whiteoak / The National
  • Self-driving taxis in Abu Dhabi. The UAE intends to become one of the leading AI nations by 2031. AFP
    Self-driving taxis in Abu Dhabi. The UAE intends to become one of the leading AI nations by 2031. AFP
  • MBZUAI has developed a curriculum and programmes that support academic research to contribute to tackling real-world challenges. AFP
    MBZUAI has developed a curriculum and programmes that support academic research to contribute to tackling real-world challenges. AFP
  • A robot outside the Dutch pavilion at the Expo 2020 Dubai. New districts are being built in the UAE, with artificial intelligence at their core. AFP
    A robot outside the Dutch pavilion at the Expo 2020 Dubai. New districts are being built in the UAE, with artificial intelligence at their core. AFP
  • Ajman's first self-driving bus goes on its first official drive with Sheikh Rashid bin Humaid, director of the Ajman Municipality and Planning Department, and Mr Al Olama onboard.
    Ajman's first self-driving bus goes on its first official drive with Sheikh Rashid bin Humaid, director of the Ajman Municipality and Planning Department, and Mr Al Olama onboard.
  • MBZUAI is the only graduate-level university in the world singularly focused on developing AI tools. Photo: MBZUAI
    MBZUAI is the only graduate-level university in the world singularly focused on developing AI tools. Photo: MBZUAI
  • Through the IBM Skills Academy programme, MBZUAI will have access to lectures, labs, industry use cases and design-thinking sessions. Photo: MBZUAI
    Through the IBM Skills Academy programme, MBZUAI will have access to lectures, labs, industry use cases and design-thinking sessions. Photo: MBZUAI
  • Dr Al Jaber, Minister of Industry and Advanced Technology and chairman of the MBZUAI board of trustees, has in the past emphasised the UAE's plans to use AI as a transformative tool to support its development. Chris Whiteoak / The National
    Dr Al Jaber, Minister of Industry and Advanced Technology and chairman of the MBZUAI board of trustees, has in the past emphasised the UAE's plans to use AI as a transformative tool to support its development. Chris Whiteoak / The National
  • MBZUAI offers an executive programme to equip UAE government and business leaders with practical skills to tap into the benefits of cutting-edge technology. AFP
    MBZUAI offers an executive programme to equip UAE government and business leaders with practical skills to tap into the benefits of cutting-edge technology. AFP

However, it is “not very easy to create an LLM of the scale, size and performance of a ChatGPT”, Mr Bindra says.

For one, it can require billions of dollars to create a ground-up, full stack LLM, he explains.

Other hurdles include sourcing the talent to develop the technology.

Krutrim, for example, was developed by computer scientists based in Bengaluru and San Francisco.

But one of the most difficult parts of the process, Mr Bindra says, is gathering the huge amounts of data required for developing such models.

“More important than language is context,” he says. “We need models with Indian context – Indian healthcare information, Indian data from radio and TV channels, Indian land records data, legal, education. All of these are going to be important to create the right kind of models for India,” he says.

Ultimately, if India can develop models that are accessible to the mass population, it will give a massive boost to the economy, he adds.

“India-centric AI models are crucial due to the country's diverse linguistic, cultural and socio-economic landscape,” says Deepika Loganathan, co-founder and chief executive at HaiVE. Tech, an AI provider.

“Tailoring AI models to India's unique context ensures they are more effective and inclusive.”

However, India's work in this area is still at a relatively nascent stage, she adds.

“While some strides have been made in this area, notably in language processing and localised applications, there's a need for more extensive work,” says Ms Loganathan.

This includes “developing data sets that reflect India’s diversity and addressing local challenges through AI”.

The main challenges include shortage of skilled AI professionals, infrastructural constraints and data privacy concerns, she says.

“Additionally, there's a need for more comprehensive regulatory frameworks to govern AI use.”

The rapid acceleration and growing capabilities of AI means that India, along with other countries, faces the conundrum of how to regulate the technology amid worries about ethical implications, concerns about security and the potential impact on jobs.

Addressing these challenges requires “a multifaceted approach”, Ms Loganathan says. This would involve enhancing AI education and training, investing in infrastructure, formulating clear AI policies and developing public-private partnerships.

Industry experts, meanwhile, remain optimistic about the progress that AI could experience in India in 2024.

“With increasing investment in AI research and development, growing government support, and the rising adoption of AI across industries, we are likely to see significant advancements,” says Ms Loganathan.

“I anticipate more collaboration between academia, industry and government to drive AI innovation, addressing both domestic and global challenges.”

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Draw for Europa League last-16

Istanbul Basaksehir v Copenhagen; Olympiakos Piraeus v Wolverhampton Wanderers

Rangers v Bayer Leverkusen; VfL Wolfsburg v Shakhtar Donetsk; Inter Milan v Getafe

Sevilla v AS Roma; Eintracht Frankfurt or Salzburg v Basel; LASK v Manchester United

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COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

if you go

The flights

Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes. 

The hotels

Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes. 

When to visit

March-May and September-November

Visas

Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.

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Essentials

The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes. 
 

Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes. 


In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes. 
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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A little about CVRL

Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.

One of its main goals is to provide permanent treatment solutions for veterinary related diseases. 

The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery. 

Places to go for free coffee
  • Cherish Cafe Dubai, Dubai Investment Park, are giving away free coffees all day. 
  • La Terrace, Four Points by Sheraton Bur Dubai, are serving their first 50 guests one coffee and four bite-sized cakes
  • Wild & The Moon will be giving away a free espresso with every purchase on International Coffee Day
  • Orange Wheels welcome parents are to sit, relax and enjoy goodies at ‘Café O’ along with a free coffee
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Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

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Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Updated: December 25, 2023, 6:00 AM