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India could see strong productivity gains from AI over the next decade, Infosys co-founder Nandan Nilekani said Thursday. He made the remarks at the India Policy Forum in New Delhi, highlighting applied AI as India’s key opportunity.
Nilekani said India does not need to lead in chips or large AI models to benefit from the technology. Instead, India can use AI in daily services and reach people across the country.
“It’s in the area of applied AI that India will become a leader,” Nilekani said, according to sources.
He said India could become the “AI use case capital of the world” by using AI for real problems. Healthcare, education, agriculture and financial services could see wider AI use.
India’s digital public infrastructure could also help bring these tools to millions of people. Aadhaar and UPI show how digital systems can reach people across the country.
Nilekani also raised concerns about AI and jobs, especially at large companies. He said companies with highly organized roles could automate many routine tasks and reduce their workforce.
“Large companies will probably be net job losers in the coming years,” Nilekani said, according to sources.
Small businesses may play a greater role in creating jobs as AI grows. Nilekani expects millions of smaller businesses to support employment rather than depending only on large companies.
India still needs better skills, digital access and reliable systems to gain from AI. Wider adoption could help turn AI productivity into stronger growth and inclusion.
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