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While generative AI ( GenAI ) is delivering tangible efficiency gains, its implementation is a difficult task for low cost economies. Jan Wuppermann, SVP & brain of information & AI in APAC, emphasized that price and facilities remain barriers in markets like India and Southeast Asia. ” GenA I can be expensive to run ( large models and GPU requirements ) and it doesn’t always fit with the low-cost structures these economies are built around,” he explained. ” Secret Intelligence is gaining momentum as a cost-effective, data-secure solution. “
Talking about GenAI’s implementation in India, specially among MSMEs, John Lombard, CEO, Asia Pacific, NTT DATA, observed that while the challenges aren’t totally unique to India, the “post-pilot weight” is true. ” Some early adopters ran GenAI aircraft that didn’t give off, and then there’s suspicion. It’s no longer about beautiful software, it’s about effect on the stock surface. Some rushed into GenAI pilots early on, got their fingers burned, and pulled up. Today, they’re reassessing. There’s no wonder GenAI is delivering bottom-line outcomes, but issues like reputation facilities and lack of formal AI guidelines are slowing progress. “
For example, sectors such as manufacturing remain hampered by obsolete infrastructure, workforce ability gaps, and lack of robust governance frameworks, when it comes to GenAI execution. Regulatory force, coupled with global supply chain uncertainty and shifting client demands, are pushing manufacturers to operate. The absence of strong business sites and peer mentoring programs is also a big problem for tech-enabled MSMEs in India, hindering their ability to share knowledge and learn from each other.
As per a study review by Nasscom, 65 per cent of tech-enabled MSMEs report a lack of knowledge about the implementation of AI tools and resources as the major problem in adopting AI technologies. This lack of awareness hinders their ability to identify suitable AI solutions and effectively integrate them into their business processes. ” As much as 57 per cent of tech-enabled MSMEs struggle with a shortage of technical expertise necessary for implementing AI solutions. This skill deficit hampers their ability to fully utilize these advanced technologies, as they often lack the in-house capabilities to develop, integrate, and manage AI systems,” the report said.
That said, the outlook for India is promising. ” India is investing. The government has laid out a national AI strategy and is partnering with private enterprise to build the infrastructure,” Lombard said. ” In many ways, India’s strategic thinking is ahead of other countries in the region. “
As per a report by NTT DATA, the numbers speak volumes. A surveyed 95 per cent of respondents said GenAI is already improving efficiency and profitability, with 94 per cent expecting the integration of IoT data to enhance the accuracy of AI outputs. In APAC, these figures were even higher, at 97 and 99 per cent respectively.
Both Lombard and Wuppermann reiterated infrastructure limitations, fragmented approach to Cloud adoption, and the need for upskilling as persistent issues for regional challenges in APAC and India.