India Seeks to Shape AI Governance for Developing Nations Amid Investment Boom

NEW DELHI - India is positioning itself as a key player in shaping the governance of artificial intelligence (AI) from the perspective of developing nations, even as it courts massive foreign investment in its burgeoning tech sector.

The "India AI Impact Summit" commenced in New Delhi, drawing international attention as a significant effort to frame AI governance through the lens of the developing world.

The summit occurs as major global corporations increase their footprint in the Indian market. Google (Alphabet), Microsoft, and Amazon have announced investment plans totaling $68 billion in AI and cloud infrastructure in India by 2030, according to reports.

While the United States and China dominate the development of large language models, India is pursuing a different strategy. India is banking on its competitive advantage of widespread AI adoption rather than focusing on foundational model development, according to reports.

This strategy is reflected in the rapid growth of AI users in India. The number of daily ChatGPT users in India is expected to exceed 72 million by the end of 2025, making it the largest market for OpenAI globally.

The summit is expected to feature high-profile attendees, including CEOs from Alphabet, OpenAI, and Google DeepMind, as well as India's Reliance. Indian Prime Minister Narendra Modi is also scheduled to meet with French President Emmanuel Macron.

However, amidst the optimism, concerns are emerging about the potential impact of AI on India's IT sector. Investment bank Jefferies projects a potentially sharp decline in revenue for the $283 billion Indian IT sector.

Jefferies forecasts call center revenues could fall by as much as 50% by 2030 due to increased automation of jobs through AI tools.

Observers note that India is attempting to bridge the gap between cutting-edge technology and human needs, balancing investment ambitions with the protection of its large labor market.