- The last few decades belong to information technology and its associated verticals are nothing but stating the obvious. Some of the most happening verticals like the Internet of Things, Machine Learning, Data Analytics, and most important among the latest innovations, Artificial Intelligence have taken the world by storm. Moreover, the now ubiquitous digitalization endeavors are also undertaken by every country in the world in line with the fast-changing modern times. The introduction of digital technology is turning out to be a big boon for the entire global community on several parameters. What once used to be restricted to sci-fi movies, the IT domain is turning those into reality in our daily lives in an incredibly unbelievable manner.
PC: Gates Notes
- As you are aware, India is blessed with an abundance of trained IT workforce who have branched out to several overseas countries over the last few decades. No wonder, some of the biggest technology companies are headed by Indian technology honchos contributing immensely to the growth of the sector manifold. It doesn’t come as a surprise to note that as much as 96% of wealth gained on the Bloomberg Billionaires Index this year is in AI-related stocks. Giant waves of innovation have spawned giant wealth creation since the first industrial revolution. True, some tech-inspired wealth creation is short-lived. Like crypto. But AI is different Because there is no credible scenario in which its use value across business and society will plummet.
- Undoubtedly, AI is a substantive game-changer that will revolutionize the world’s view in the next few years. Note how Google enjoys the search engine market today. And AI tomorrow may follow this trend. A big gainer of this year’s blistering rally in AI-related stocks and a company whose m-cap has overtaken Alphabet’s is Nvidia. It holds around 80% of the high-end AI chip market. Like in the case of Silicon Valley sultans before them, network effects will help AI titans achieve super dominance. Of course, it’s not like everyone else slept as the starter pistol went off. Chinese billionaires have also joined the AI race now. Their science and money do lag significantly. US export controls are another major challenge which is a sticking note presently.
PC: Forbes
- Nonetheless, these very controls are also spurring indigenous technological development, with govt spurs. China’s biggest chip manufacturer SMIC is trying to catch up with the Taiwanese giant TSMC. US companies like Nvidia themselves keep devising one workaround after another to frustrate US controls. Yes, Nvidia’s dominance may be undermined by this one day. However, for now, experts say the US is eating everybody’s lunch. Where does this latest technological wonder leave India then? Worryingly, tech stocks have not been particular stars in the Indian equity market’s star performance. If AI drives a new industrial revolution, alongside wealth and power, the only way for India to be at the high table will be to be an AI-maker. Not just an AI-taker.
