85% Of AI Developers Rely On Public Cloud, While 74.5% See Sufficient Choice Among Providers, Report Finds

New Delhi - A report titled "Competition, Innovation, and Market Structure in India’s AI Ecosystem: An Empirical Assessment" reveals that 85% of AI developers in India rely on public cloud infrastructure. Meanwhile, 74.5% of these developers believe there is sufficient choice among compute providers. The study, conducted by public policy think-tank The Dialogue, also highlights the growing importance of open-source technology, with 96.2% of AI developers relying on open-source tools.

Furthermore, 79% of developers view open-source models as at least a partial substitute for proprietary models. Data standardization emerged as a significant challenge for AI developers, with 63.2% stating it as their biggest hurdle. However, only 15% of developers found government-held datasets readily accessible. Talent availability also emerged as a barrier, cited by 47.2% of AI developers.

Despite these challenges, AI adoption is bringing tangible benefits to businesses, with 85% of surveyed businesses reporting a positive impact from AI, with improved decision-making and faster delivery being the most commonly cited advantages.