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            At the two day Group of 20 summit in Osaka in Japan, Prime Minister Narendra Modi underscored the significance of Digital Economy & Artificial Intelligence. He emphasised the government’s reliance on the 5 ‘I’s that stand for Inclusiveness, Indigenization, Innovation, Investment in infrastructure & International cooperation in developing these two areas. The Prime Minister’s emphasis on the two fields, in particular Artificial Intelligence is not a recent development. The importance the Government attaches to it has been evident in the last two Union budgets, including the Interim Budget that was presented in February. The concept of Artificial Intelligence is based on the idea of building machines capable of thinking, acting, and learning like humans.


What is AI?

  • Artificial intelligence is the branch of computer science concerned with making computers behave like humans.
  • AI refers to the ability of machines to perform cognitive tasks like thinking, perceiving, learning, problem solving and decision



  • NITI Aayog estimates that adopting AI means a 15% boost for the gross value added (GVA) for the economy by 2035.
  • AI can increase access and affordability of quality healthcare.
  • In agriculture, it can contribute towards enhancing farmers’ income, increase farm productivity and reduce wastage.
  • It can also improve access and quality of education.
  • It can help build efficient infrastructure for the increasing urban population.
  • Develop smarter and safer modes of transportation to address traffic and congestion problems.
  • AI could create jobs in the country that would be higher than the number of jobs becoming redundant due to innovation in technology.
  • Increase efficiency and enhance governance across the government.
  • Helps in improving the ease of doing business, as well as making the lives of people simpler.
  • ‘Make in India’ programme can be strengthened and help India in becoming a major manufacturing hub with AI-assisted technology.



  • Advancements in technology over the last couple of decades—computing evolution (cloud, big data, machine learning, etc), falling costs (cheaper data storage) and growing digitalisation.
  • Access to technology easing for the masses.
  • The demand for AI and machine learning specialists in India could rise by 60%.


Application of AI:

  • Heavy Industries & Space
  1. a) Through AI an entire manufacturing process can be made totally automated, controlled & maintained by computer system
  2. b) Example: car manufacturing machine tool production, computer chip production. Etc.
  3. c) They carry out dangerous tasks like handling hazardous radioactive materials.
  • Finance
  1. a) Banks use intelligent software application to screen & analyse financial data.
  2. b) Software that can predict trends in stock market have been created which have been known to beat humans in predictive power.
  • Aviation
  1. a) Air lines use expert system in planes to monitor atmospheric condition & system status.
  • Weather Forecast
  1. a) Neural Network is used for predicting weather condition.
  2. b) Previous data are fed to a neural network which learns the pattern & uses that knowledge to predict weather pattern.
  • Microsoft develops AI to help cancer doctors find the right treatments.
  • Google uses machine learning to auto-complete search queries and often accurately predicts what someone is looking for.
  • Facebook and Amazon use predictive algorithms to make recommendations based on a user’s reading or purchasing history.
  • AI is the central component in self-driving cars—which can now avoid collisions and traffic congestion
  • Banking sector
  1. a) Banks may look at using AI for enhancing customer experience, security, and risk management
  2. b) Intuitive and personalised customer experience is one of the benefits that AI can provide
  3. c) With the use of AI, banks’ call centre work could get reduced to a certain extent.
  • Repetitive Jobs
  1. a) Repetitive jobs which are monotonous in nature can be carried out with the help of machine intelligence.
  2. b) Machine intelligence can be employed to carry out dangerous tasks
  • Difficult Exploration
  1. a) Artificial intelligence and the science of robotics can be put to use in mining and other fuel exploration processes.
  2. b) These complex machines can be used for exploring the ocean floor and hence overcoming the human limitations.
  • Error Reduction
  1. a) Artificial intelligence helps us in reducing the error and the chance of reaching accuracy with a greater degree of precision is a possibility.
  2. b) Artificial intelligence is applied in various studies such as exploration of space.
  3. c) They are created and acclimatized in such a way that they cannot be modified or get disfigured or breakdown in the hostile environment


International Practice:

  • France and China have formalised strategies to harness and realise the potential of AI.
  • US and South Korea are making tremendous advances in AI.

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