A joint report by Nasscom and consulting firm Zinnov has highlighted the increasing adoption of artificial intelligence (AI) among startups in India.
The “Indian Tech Startup Landscape Report 2023” reveals that around 70% of startups are investing in AI to enhance product capabilities and internal efficiencies.
Key Findings from the Report:
- AI Adoption: Approximately 70% of Indian startups are prioritizing AI adoption for improving product capabilities and internal efficiency.
- Startup Landscape: India’s tech startup ecosystem witnessed the addition of over 950 new technology startups in the past year, with more than 750 receiving funding.
- Geographic Diversity: Tier-2 and tier-3 cities now account for 40% of the startup ecosystem, reflecting the emergence of new innovation centers in non-metro areas.
Anticipated Trends and Recommendations:
Future Funding: The report anticipates improvements in funding, upcoming IPOs, and continued innovation across disruptive technologies and key sectors.
DeepTech Growth: A focus on the DeepTech sector is expected to continue, with 59% of startups leveraging DeepTech for organizational efficiency.
Regulatory Guidance: Emphasizes the need for a pro-innovation, risk-based approach to AI regulation and guidance for startups on compliance with the Digital Personal Data Protection Act.
Debjani Ghosh’s Perspective: Debjani Ghosh, President of Nasscom, highlighted the need for accelerated funding in the DeepTech sector to build India’s DeepTech ecosystem.
Conclusion: The report underscores the resilience and adaptability of India’s tech startup ecosystem, positioning it for continued growth and innovation in the coming years.