India's AI Awakening: Tech-Driven Decade for CX

As the world stands on the cusp of a new technological era, India is emerging as a formidable force in the realm of artificial intelligence (AI). The country's journey into this transformative field is not just a tale of technological advancement, but a testament to its vision of inclusive growth and ethical innovation. India has embarked on what it calls its "Techade" - a decade dedicated to technological advancement - with AI at its core, aiming to position itself as a global leader in AI development and application.

The AI landscape in India is witnessing exponential growth. From a market value of $6 billion in 2023, it is projected to reach a staggering $20 billion by 2028, growing at an impressive annual rate of 26%. This surge is primarily propelled by IT service providers, who currently hold a 60% market share. Such rapid expansion is not merely a reflection of India's technological capabilities, but also a clear indication of the country's commitment to harnessing AI for societal and economic progress.

At the heart of India's AI aspirations lies a holistic approach that goes beyond mere technological advancement. The government's National Program on Artificial Intelligence underscores the country's dedication to ethical AI innovation. This program, along with various initiatives by the Ministry of Electronics and Information Technology (MeitY), aims to create a robust ecosystem that nurtures innovation while ensuring ethical considerations and societal benefits remain at the forefront.

AI is Essential for Businesses to Revolutionize CX

With 77% of businesses reporting increased customer expectations for digital engagement, Indian businesses are implementing AI-led tech capabilities into their systems, processes, and contact centers to be able to meet and deliver on clients’ expectations. While AI-powered solutions are revolutionizing customer service operations for businesses, intelligent chatbots and virtual assistants handle routine inquiries and AI-driven predictive analytics anticipate customer needs and suggest optimal actions to agents. Voice analytics powered by AI improve agent performance through real-time feedback and coaching.

The integration of AI for outsourced service providers is not only improving customer experience but also optimizing workforce management. AI algorithms predict call volumes and suggest optimal staffing levels, reducing wait times and improving overall service quality. As a global hub for digital CX operations, these AI innovations are positioning India at the forefront of customer service and customer experience management technology.

Linguistic inclusivity is another crucial aspect of India's AI development. Efforts are underway to create AI models that can understand and process Indian languages, making technology accessible to a wider range of the population. This approach aligns with India's diverse linguistic landscape and ensures that AI benefits reach all segments of society.

The Talent Pool has put India on the Digital Services Map

India's robust education system and thriving tech industry have created a formidable AI talent pool. However, the rapid pace of technological advancement has also exposed a skills gap. According to a Nasscom report, India ranks second globally in AI talent but faces a significant demand-supply gap. The State of Data Science and AI Skills report 2023 showcases India's strong AI talent pool, ranking second globally, but with a significant demand-supply gap that needs addressing. To address this, both the government and private sector are investing heavily in AI education and training programs. Universities are updating their curricula, while companies are offering upskilling opportunities to ensure the workforce remains competitive in the AI-driven economy.

‘High-Tech, High Touch’ for transformative CX

India's unique approach to AI development – balancing innovation with ethics, leveraging the latest technology with human empathy, focusing on inclusivity, and aiming for societal impact positions it as a potential guiding light for other developing nations. The success of India's AI journey, particularly in areas like digital customer experience innovation, could pave the way for a more equitable and responsive global AI ecosystem.

Authored by Amit Vohra, CTO, Teleperformance in India