India is set to witness a sharp rise in artificial intelligence (AI) adoption across key sectors in 2025, according to Sanjeev Malhotra, CEO of the Centre of Excellence for IoT and AI at Nasscom. The increased adoption will lead to cost reductions, improved efficiency, and wider innovation across sectors like healthcare, finance, energy, and governance.
Faster Adoption, Lower Costs
Malhotra emphasized that AI adoption costs will decline as computing and manpower expenses reduce. Increased access to AI knowledge and training programs will accelerate application development and enterprise adoption.
“Most of the cost is computing and manpower, and as knowledge becomes more pervasive, more people get trained on this, I think the rate of application development will increase, so will the rate of adoption across the board,” Malhotra said.
Indian enterprises are also expected to achieve higher operational efficiency and reduced fault rates. Malhotra predicted that global markets would increasingly turn to India-made AI solutions for their unique requirements.
AI Adoption Moves to Full-Scale Deployment
AI adoption in India is progressing from proof-of-concept stages to full-scale production, especially in sectors like fintech and healthcare. Automated loan processing, fraud detection, and grievance redressal systems are leading AI applications in these industries.
Governments are increasingly turning to chatbots for managing citizen grievances. These AI-powered tools address large-scale queries without relying heavily on human call center agents.
“Governments are also beginning to use chatbots for grievance redressal, as it is not possible to deploy large numbers of call centre agents,” Malhotra added.
Public LLMs Drive Innovation
The availability of public Large Language Models (LLMs) from global tech companies is driving innovation among Indian startups. These models simplify the development of AI-driven applications, allowing startups to focus on domain-specific solutions.
Startups are customizing LLMs with additional features to deliver targeted solutions across industries. Malhotra believes these tools provide a strong foundation for local businesses to build cost-effective artificial intelligence products.
Energy and Healthcare Lead AI Innovation
In the energy sector, AI applications are optimizing energy consumption and extending battery life through software interventions. This is particularly impactful with the growing adoption of electric vehicles (EVs).
AI is also enabling predictive maintenance for power plants and improving grid optimization. These advancements are expected to have a cumulative impact on energy efficiency.
Healthcare is experiencing similar progress. AI chatbots are assisting with initial diagnoses and are now available in multiple Indian languages.
“Patients can talk to machines regarding their problems and receive good guidance. These chatbots now come in different languages, making them more open to adoption by the larger population,” Malhotra said.
Nasscom’s Initiatives for AI Growth
To support AI adoption, Nasscom has introduced several initiatives aimed at bridging the gap between startups and enterprises. Malhotra highlighted co-creation programs, where enterprises collaborate with startups to discover existing AI solutions instead of building them from scratch.
“This programme connects startups with industries and funding organisations, making it easier for startups to access large enterprises,” Malhotra explained.
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Addressing the Skill Gap
The Nasscom Future Skills platform, developed in partnership with the Ministry of Electronics and Information Technology (MeitY), is addressing the AI skill gap. The program offers affordable online learning resources to professionals, equipping them with essential AI competencies.
This platform is designed to ensure that India has a skilled workforce ready to meet the growing demand for AI professionals across industries.
A Promising Future for AI in India
With increasing adoption, falling costs, and a focus on skill development, AI is poised to become a transformative force in India’s economy. Industries ranging from finance and healthcare to energy and governance will benefit from artificial intelligence-driven efficiencies and innovative solutions.
As AI solutions from India gain global recognition, Nasscom’s initiatives are laying the groundwork for a future-ready workforce and a thriving AI ecosystem.
India’s AI journey in 2025 promises not just technological advancement, but also inclusive growth across sectors, benefiting businesses and citizens alike.
This news was originally reported by Financial Express (FE)
