‘India expected to invest $1 billion in AI by 2023’

Context: According to Project Management Institute (PMI), a Philadelphia-based non-profit organisation Global enterprises are expected to invest $98 billion in artificial intelligence (AI) by 2023 and India’s share in it will be about $1 billion.
Key Points

• Importance of business understanding, data preparation and data modelling especially at a time when digital revenues of Indian tech firms are on a constant rise.
• Many companies are deploying AI projects through trial and error methods. 
• The amount of experimentation that goes into AI projects is far greater than traditional projects.
• However, some $54 billion — 55% of this proposed global investment — may go waste due to lack of familiarity or understanding of newer practices, technologies and tools and inability to optimise data. 
• Consequently, the corresponding wastage in India will be $484 million, as per PMI’s estimates.
• Further, poor management practices alone may lead to global losses of $11 billion, that is 11.4% of the total investments of $98 billion. 
• India’s individual share in the losses would be $81 million, based on data shared by the professional body.
• The global failure rate of 55% was applied to India as well, as there was no comparable data available for the country as of now.
• ”That means, more than half of AI investments, expected to be done by 2023, in India may also go waste. 
• Project management methodology and framework are imported from traditional (legacy) practices and therefore are misfit for AI and Data Science projects.

Road Ahead

• In AI, we are trying to imagine the future to create a new reality. To avoid failure, it is also critical to achieving 80% of the outcome from 20% of the data instead of going ocean surfing.’’

By: Shubham Tiwari