India has been advised to create its own foundational artificial intelligence (AI) models to prevent lagging behind the United States and China, as per a recent report. The report, issued by global brokerage Bernstein, emphasized the necessity for policymakers to prioritize the development of domestic AI models due to geopolitical constraints observed on cutting-edge AI systems. It was highlighted that relying on foreign models could potentially leave Indian companies operating with outdated systems compared to their counterparts in the US and China.
The brokerage firm cautioned that if Indian firms continue to depend on external AI models, they might be compelled to function with technologies that are “one or two generations” behind what is available in leading countries. This situation could pose challenges even for Indian companies with significant engineering expertise, especially when competing against startups in other regions that have access to state-of-the-art AI systems. According to the report, advanced large language models (LLMs) are now viewed as strategic assets rather than mere off-the-shelf software, with AI being likened to the next-generation fighter jet.
The report drew parallels between AI and past transformative technologies like nuclear energy, defense systems, and semiconductors, where access to such innovations was influenced by geopolitical factors rather than market dynamics. It was stressed that India’s future in AI cannot rely on imported models alone but must involve the development of indigenous technologies. The report attributed India’s historical technology landscape, dominated by IT services rather than consumer internet platforms, as a key reason for the country’s lag in foundational platform development.
Highlighting the importance of proprietary datasets for training advanced AI models, Bernstein recommended that India focus on creating specialized domain-specific LLMs using such datasets in sectors like healthcare, industrial applications, and defense. The report underscored the significance of building a strong foundation in AI technology to ensure India’s competitiveness in the global AI landscape, cautioning against a continued reliance on foreign models while neglecting the development of homegrown AI capabilities.
