Companies and entrepreneurs are harnessing advanced technologies to simplify tasks and accelerate growth. A decade ago, artificial intelligence was an unfamiliar concept, but today, it has become an integral part of daily life. From correcting texts and enhancing videos to enabling small-scale businesses from home, AI streamlines it all.
Prospects of AI
Automation & Efficiency
AI streamlines workflows by automating repetitive tasks, reducing errors, and boosting productivity across industries. In manufacturing, AI-driven robots enhance production, while in finance, AI strengthens fraud detection and risk management. This efficiency lowers costs and allows human workers to focus on strategic and creative tasks.
Personalization
AI enables hyper-personalized experiences by analyzing user data and preferences. In healthcare, AI tailors treatment plans, improving patient outcomes. In marketing, recommendation engines enhance customer engagement. AI-powered chatbots and virtual assistants also provide customized support, improving customer service experiences.
Scientific & Technological Advancements
AI accelerates breakthroughs in medicine, climate science, and space exploration. It speeds up drug discovery, enhances climate modeling for disaster prediction, and enables autonomous space missions. NASA’s AI-driven rovers, for example, navigate Mars and analyze terrain efficiently.
Economic Growth
AI drives innovation, entrepreneurship, and global economic expansion. Businesses use AI to optimize supply chains and improve decision-making. While some jobs may be automated, AI also creates demand for new roles, emphasizing the need for workforce reskilling in tech-driven industries.
Challenges of AI
Bias & Ethical Concerns
AI models can inherit biases from historical data, leading to unfair decisions. In hiring, biased algorithms may favor certain demographics, and facial recognition systems can misidentify individuals. Ensuring fairness requires diverse training data, ethical guidelines, and transparency in AI development.
Data Privacy & Security
AI relies on vast amounts of data, raising concerns about privacy breaches and cybersecurity threats. Regulations like GDPR and CCPA aim to protect user data, but AI-driven cyberattacks and deepfake scams pose new risks. Stronger encryption, data policies, and security measures are essential.
Job Displacement
AI automation threatens traditional roles in industries like retail, manufacturing, and transportation. Self-checkout kiosks, automated warehouses, and self-driving vehicles reduce the demand for human labor. Governments and businesses must invest in reskilling programs to help workers transition into AI-driven industries.
Regulation & Accountability
AI’s rapid evolution poses challenges for policymakers. Issues such as AI transparency, liability in autonomous systems, and misinformation from AI-generated content need clear regulations. Governments must collaborate with industry leaders to create ethical AI policies and international standards.
Generative AI: A New Technology
India’s generative ecosystem has rapidly evolved from infancy in 2022 to a thriving innovation hub. Entrepreneurs and investors have embraced the technology, driving groundbreaking advancements across industries.
The country celebrated its first AI unicorn, Krutrim, while Indian GenAI founders introduced transformative applications—from disease detection to human-like conversational platforms. Today, leading startups like OYO and Unacademy integrate AI to enhance user experiences and streamline operations. With this momentum, Inc42 projects the homegrown GenAI market will surpass $17 billion by 2030.
Fueling this growth, over 200 GenAI startups have emerged, raising more than $1.2 billion since 2020. Leading the charge, SarvamAI and Krutrim develop Indic LLMs, while ObserveAI, with over $214 million in funding, harnesses AI for tailored customer and operational support.
Here are some of the AI Startups that are yielding good revenue by integrating this new build technology as follows
Observe AI
Observe AI, founded in 2017 by Sharath Keshava Narayana and Swapnil Jain, powers contact centers with its conversational intelligence platform. The company has secured $214 million across six funding rounds, including a $125 million raise in 2022. Backed by top investors like Zoom, Bossanova Investimentos, Y Combinator, Menlo Ventures, and Nexus Venture Partners, Observe AI competes with Noogata, TUNGEE, Osense Technology, and Slang Labs.
Pixis
Pixis, founded in 2020 by Harikrishna Valiyath, Shubham A Mishra, and Vrushali Prasade, offers a codeless AI infrastructure platform for brands to manage and optimize marketing campaigns. The startup has raised $209 million to date, including $85 million in its last funding round in 2023. Backed by Grupo Carso, General Atlantic, Celesta Capital, and Chiratae Ventures, Pixis competes with Utilidata, HeadSpin, and Navikenz in the AI-powered technology space.
Ola Krutrim
Krutrim, founded in 2022 by Ola and Ola Electric’s Bhavish Aggarwal, is developing an India-specific LLM capable of supporting 10 Indian languages. While the startup has yet to launch public products, it continues to push the boundaries of GenAI. At its annual event in August 2024, Aggarwal unveiled plans to build India’s first homegrown AI, general computing, and Edge chip family.
In January 2024, Krutrim became India’s first pure-play AI unicorn after securing $50 million in funding. With a total of $74 million raised, it stands among the country’s most well-funded AI startups, backed by investors like Z47.
Sarvam AI
SarvamAI, founded in 2023 by AI4 Bharat creators Vivek Raghavan and Pratyush Kumar, develops custom LLMs tailored for India-centric use cases.
In August 2024, the Bengaluru-based startup launched its full-stack GenAI platform, featuring Sarvam Agents, Sarvam 2B, Shuka 1.0, Sarvam Models, and A1, to drive AI adoption across India’s diverse linguistic and socio-economic landscape. Backed by Peak XV Partners and Khosla Ventures, the startup secured $41 million in Series A funding from Lightspeed Venture Partners in December 2023.
Rephrase AI
Rephrase AI, founded in 2019 by Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, uses GenAI to generate professional videos in minutes with simple text input. The startup has raised $12 million to date, including $10.6 million in its 2023 funding round.
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With a passion for news writing and a deep interest in Journalism, Bowrna wants to write articles that create an impact. Not only writing, she also has a passion for voiceovers and also aspires to become a Radio Jockey in the future. When not writing, she likes to listen to songs and dance to her heart's content. She is proficient in English, Tamil and Hindi.
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