artificial intelligence
Artificial Intelligence
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Moneycontrol29-01-2026, 14:16

Economic Survey 2026: India's AI Strategy Should Be Application-Led, Not Frontier Model Focused

  • Economic Survey 2026 advocates for an application-led AI strategy for India, leveraging domestic data, human capital, and public institutions.
  • The proposed 'bottom-up' approach prioritizes sector-specific, small AI models that are computationally efficient and can run on local hardware.
  • This strategy encourages innovation on open-source platforms, reducing dependence on foreign proprietary systems and lowering entry barriers for domestic developers.
  • The Survey suggests an 'AI-OS' initiative, similar to UPI and Aadhaar, to turn AI into a public good, coordinating efforts and sharing infrastructure.
  • India's limited compute infrastructure and financial resources make a frontier model-centric approach challenging, aligning better with a bottom-up strategy.

Why It Matters: India's AI future lies in application-led, open-source innovation, leveraging its unique strengths for widespread impact.

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