Investment in Gen AI increased six times, read Nasscom's new report here

New Delhi : Information technology (IT) industry body NASSCOM has said India's generative artificial intelligence (Gen-AI) ecosystem has grown significantly amid a global slowdown, recording a six-fold increase in quarterly investments. NASSCOM, in a report on Generative AI released on Monday, November 25, details the strong surge in funding and innovation within India's Generative AI landscape.

Indian Gen-AI startup funding stood at around $51 million in the July-September quarter, more than six times quarter-on-quarter, the report said. B2B and AI startups played an important role behind this. The second quarter saw an increase in funding rounds after a weak performance in the June quarter. According to the Nasscom report, applications related to generative AI received the highest funding.

However, globally GenAI startup funding stood at around $4 billion in the September quarter, a 2.3-fold decline compared to the June quarter. Most of the major and medium-sized technology companies in India are involved in the development of GenAI platforms as early as 2023. These platforms are gradually being introduced with multimodal, multi-model data, AI and cloud integration ecology. “The Generative AI landscape is rapidly evolving, reshaping technology service providers and giving rise to new capabilities,” said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer, NASSCOM. “Providers are reevaluating strategies and increasing investments in technology and talent.”

What does NASSCOM do?

NASSCOM is a trade association of information technology and BPOs of India. It was established in 1966. This is a non-profit organization. Its number of members is more than 1500, out of which more than 250 members are companies from the US, UK, EU, Japan and China.

NASSCOM is the premier trade body and chamber of commerce of the tech industry in India and consists of over 2800 member companies including both Indian and multinational organizations that have a presence in India. Guided by the vision of India to become a leading digital economy globally, NASSCOM is focused on accelerating the pace of industry transformation to emerge as the preferred enablers for global digital transformation.

With agency input.