Hackers vs. AI: 86% of Firms Hit by Cyber Threats—Who’s Winning?

Cisco's 2025 Cybersecurity Readiness Index reveals that only 4% of organizations worldwide have reached a "Mature" level of cybersecurity readiness. This is a slight improvement from last year's 3%, but it still highlights significant gaps in global preparedness.

The Index evaluates companies' readiness across five pillars—Identity Intelligence, Network Resilience, Machine Trustworthiness, Cloud Reinforcement, and AI Fortification— and encompassing 31 solutions and capabilities. Based on a double-blind survey of 8,000 private sector security and business leaders in 30 global markets, respondents detailed their deployment stages for each solution. Companies were then categorized into four readiness stages: Beginner, Formative, Progressive, and Mature.

Key Findings:

The lack of cybersecurity readiness globally is alarming as 71% of respondents anticipate business disruptions from cyber incidents within the next 12 to 24 months.

• AI-related security incidents affected 86% of organizations in the past year.
• 49% of respondents believe their employees fully understand AI-related threats, while 48% think their teams grasp how malicious actors use AI for attacks.
• Nearly half of organizations suffered cyberattacks, struggling with complex security frameworks.
• 71% of respondents anticipate business disruptions due to cyber incidents within the next 12 to 24 months.
• Only 45% of organizations allocate more than 10% of their IT budget to cybersecurity, down from 53% last year.

The report evaluates cybersecurity readiness across five pillars: Identity Intelligence, Network Resilience, Machine Trustworthiness, Cloud Reinforcement, and AI Fortification. AI is both a security tool and a threat, with 89% of organizations using AI for threat detection, response, and recovery

The report said that — to tackle today’s cybersecurity challenges, organizations must invest in AI-driven solutions, simplify security infrastructures, and enhance AI threat awareness. Prioritizing AI for threat detection, response, and recovery is essential, as is addressing talent shortages and managing risks from unmanaged devices and shadow AI.

66% HealthTech Leaders Say Their Organizations Generating Business Value From Several Ai Use Cases :KPMG Report

KPMG has unveiled a new report titled “KPMG Global Tech Report: Healthcare Insights” to better understand how healthcare organizations are navigating the complexities of digital transformation, targeting their technology investments, and deriving value.

By examining the perspectives of 122 healthcare technology leaders from around the world (based on a comprehensive survey of 2,450 global technology leaders including chief digital officers, CIOs, CTOs, CISOs, chief AI officers and other executives) the report provides valuable insights into how healthcare systems and organizations are on the precipice of a technology revolution, and are leveraging advanced technologies and tools to streamline operations, reduce costs and, above all, enhance patient experiences.

“Today healthcare technology leaders believe robust regulatory frameworks are a must to ensure the safety and privacy of data in cloud-hosted solutions. They believe this assurance enables them to advance technological innovation with confidence. Prioritizing comprehensive data interoperability frameworks is critical for seamless communication between systems across organizations and jurisdictions. Such connectivity can drive accurate patient care, promote global collaboration in medical research, and strengthen AI model training through access to diverse datasets.” said Lalit Mistry Partner and Co-head, Healthcare Sector, KPMG in India.

Key Findings from the Report:

• 70 per cent of healthcare respondents are satisfied with the amount of value they are getting from their technology investments.
• Compared with a year ago, more healthcare organizations are developing and testing data and analytics strategies or already have a strategic vision for their capabilities
• 70 per cent say cyber security teams are typically involved in the earliest planning stages and have a high degree of influence when it comes to tech investment decision-making
• 66 per cent of healthcare technology leaders say their organizations are generating business value from several AI use cases
• 61 per cent of healthcare technology leaders are currently prioritising AI and Automation as they consider how to invest in technology to support their ambitions.
• 57 per cent admit that flaws in their organizations’ enterprise IT systems disrupt business as usual on a weekly basis.
• Top 3 factors slowing down digital transformation in healthcare includes – Cyber security and privacy concerns, transformation fatigue and immature data management strategies. 
• Healthcare leads all other sectors when it comes to prioritizing and investing in Web3 technology including blockchain and tokenization.

First Edition of India’s International Technology Engagement Strategy (ITES) for Quantum Released

The Office of the Principal Scientific Adviser to the Government of India today released the first edition of International Technology Engagement Strategy for Quantum, marking a significant step toward articulating India’s outward-facing strategy in Quantum Science, Technology and Innovation (QSTI), with the intent to accelerate discovery, foster innovation, and catalyse adoption across critical sectors.

Prof. Ajay Kumar Sood

The report was officially unveiled by PSA Prof. Ajay Kumar Sood during the Office of PSA’s podcast on the occasion of World Quantum Day 2025, celebrated every year on April 14. This report comes with a special significance because of 2025 being the International Year of Quantum Science and Technology (IYQST) designated by the United Nations and member states.

This inaugural edition of ITES-Q provides a comprehensive overview of both global and national quantum ecosystems, covering analysis of investments, talent development, institutional strengths, research publications, intellectual property, startups, supply chains, and industrial activity. The ITES-Q is thought out to facilitate impactful partnerships and particularly add value to the efforts of Indian missions abroad in strengthening bilateral and multilateral engagements for QSTI.

The ITES is an initiative of the Office of the PSA to GoI, designed to strengthen and elevate India’s Technology Diplomacy efforts across critical and emerging domains.

The full ITES-Q report can be accessed through the Office of PSA website: https://psa.gov.in/CMS/web/sites/default/files/publication/ITES_QWEBSITE1.pdf

World Quantum Day 2025 Podcast with PSA can be tuned in here: 

India’s Quantum Leap with 85% of Industry Leaders Calling for Major Investments in Quantum Computing, Reports Primus Partners

As quantum computing rapidly advances from research to real-world applications, India is positioned to play a pivotal role in shaping the technology’s future. A recent survey by Primus Partners - India’s leading consultancy, reveals that industry leaders across India are pushing for significant investments in quantum research and talent development to unlock the potential of this transformative technology. The survey, conducted with 200 senior executives and CXOs, highlights the critical actions needed to propel India’s leadership in quantum computing, which is expected to revolutionise sectors like cybersecurity, healthcare, and logistics.

Sundar Pichai standing next to a quantum computer at Google

Quantum's game-changing impact across sectors

Industry leaders are confident about quantum computing’s potential to reshape industries. Nearly 75% of respondents view quantum as a game-changer for India’s future. The sectors expected to benefit most include Artificial Intelligence and Machine Learning (79.4%), Cybersecurity and Cryptography (68.1%), and Healthcare and Drug Discovery (61%).

These findings highlight the critical importance of quantum computing for India’s technological advancement. AI and machine learning, for instance, stand to experience significant acceleration, with quantum algorithms potentially unlocking new levels of computational power and efficiency. Similarly, in cybersecurity and cryptography, quantum’s ability to process vast amounts of data can drastically improve encryption methods, safeguarding India’s digital infrastructure. In healthcare, quantum could revolutionise drug discovery, making it faster and more precise, ultimately improving public health outcomes.

Key actions to unlock Quantum’s full potential

To capitalise on quantum computing’s transformative promise, industry leaders are united on the critical steps India must take. Investing in research and development (R&D) emerges as a top priority, with 74.5% of respondents emphasising the urgent need for increased investment to drive quantum innovation and ensure that India remains competitive in the global quantum race. In addition to R&D, developing a skilled workforce is seen as vital for the country’s quantum future. 61.7% of respondents highlight the importance of building a highly skilled talent pool capable of driving the next generation of quantum breakthroughs. Without the necessary talent, India risks falling behind in this rapidly evolving field.

Beyond R&D and talent development, industry leaders also view quantum as a powerful tool for addressing significant societal challenges. 63.1% believe quantum computing has the potential to enhance financial systems, making them more efficient, transparent, and secure. Similarly, 61.7% see quantum's ability to advance healthcare access, particularly in underserved regions, as a key area where the technology could make a profound impact, improving India’s social infrastructure and public health systems.

Challenges to overcome: R&D Costs, Talent Gaps, and Collaboration Needs

While the potential of quantum computing is widely acknowledged, the survey also highlights significant barriers to its widespread adoption. 70.9% of respondents point to the high cost of R&D as one of the major obstacles preventing faster advancements in quantum technology. Additionally, 62.4% of respondents note that the shortage of skilled talent is another critical barrier that must be addressed in order to unlock the full potential of quantum innovation. In addition to these challenges, 45.4% of leaders emphasise the importance of collaboration across sectors. They stress the need for closer cooperation between governments, the private sector, and international organisations to overcome both the financial and talent-related barriers to quantum growth. This collaborative approach will be key to driving breakthroughs and ensuring India remains at the forefront of the global quantum race..

Devroop Dhar, Co-founder and Managing Director of Primus Partners stated, “Quantum technology holds the potential to solve some of the most complex problems in materials science, drug discovery, financial modeling, and cryptography. This technology will significantly enhance national security, drive economic growth, and create millions of jobs. Our survey clearly indicates that industry leaders recognise the urgent need for strategic investments and skill development in this field.”

With global competition accelerating, India must act quickly. 32.6% of respondents believe practical quantum applications will be realised within 3-5 years, while 27.7% estimate it will take over five years before quantum computing becomes widely deployed. This timeline underscores the urgency for India to make the necessary investments in R&D, build the required talent pool, and forge global partnerships.

India’s Gaming Sector Set for Record Growth with Rising Gamer Spending and Esports Expansion: Report

The latest Niko Partners 2024 India Gamer Behavior & Market Insights Report highlights the growth of India’s gaming industry over the next five years, projecting a 5-year CAGR of 11.1% to $1.4 billion by 2028.

Commenting on the report, Shiva Nandy, Founder and CEO of Skyesports, said: “The latest Niko Partners 2024 India Gamer Behavior & Market Insights Report aligns with our internal assessment of India’s gaming landscape. As gamers increasingly prioritize enjoyment and are willing to invest in games that meet their expectations, it’s clear that the industry is evolving rapidly. At Skyesports, our focus on a diverse range of titles catering to mobile and PC gamers aligns perfectly with this trend. We believe that the growth in gamer spending and engagement will drive the expansion of esports, capture the attention of global publishers, and attract more viewers and brands to the esports ecosystem. At this rate, in a few years, we envision an Indian gaming community where multiple titles enjoy popularity across different genres and platforms. We’re excited to be at the forefront of this transformation and remain committed to fostering a vibrant esports ecosystem.”

This strong growth, which Niko Partners says is the fastest among all the markets it tracks, is driven by a rise in player spending. 77.3% of PC gamers reported in Q1 2024 that they spent more on PC games compared to the same period last year. This figure is higher than for mobile and console gaming.

With a growing economy, increased smartphone penetration, and esports tournaments, Niko Partners expects gaming engagement to grow further, leading to higher Average Revenue Per User (ARPU).

Two-thirds of Indian gamers now prioritize enjoyment, which is driving increased spending on games that meet their expectations. Super-hardcore gamers spend 2.2x more per month than casual gamers, with female gamers spending 8.5% more than males.

Additionally, the report highlights that 65.4% of gamers are involved in esports, with esports fans spending 12% more on games than non-esports participants.

“In 2024, India’s gamers are more discerning and more willing to spend money on gaming than they were just a few years ago,” said Lisa Hanson, CEO of Niko Partners. “The 5-year CAGR of 11.1% that we forecast for India’s video games industry (to $1.4 billion by 2028) is based on trends including increased playtime and spending, greater engagement with esports, increased investment from the private sector, and support from both central and state governments to build the video games and esports industry.”

Skyesports, one of India’s leading esports companies, is already capitalizing on these trends, boasting a diversified portfolio of games and IPs, while continuously investing in PC games. Currently, the company is working with THE FINALS, an exciting FPS game available on PC and console, for its esports tournaments and has also announced a ₹14.6 Crore roadmap for Counter-Strike 2, another PC game in 2025. Earlier this year, it organized the LG UltraGear Skyesports Champions Series for the mobile battle royale title Battlegrounds Mobile India. The tournament recorded high levels of viewership, with a peak concurrent viewership of more than 100,000 and over 1.9 million watch hours.

All Indian Salt and Sugar Brands, Packaged or Unpackaged, Contain Micro Plastics - Study

A recent study by the environmental research organization Toxics Link revealed that all tested Indian salt and sugar brands, whether packaged or unpackaged, contain microplastics.

The study, titled "Microplastics in Salt and Sugar" and conducted by the environmental research organisation Toxics Link, examined 10 varieties of salt-as well as five varieties of sugar, procured from both online and local markets.

The findings disclosed the presence of microplastics in all tested samples of salt and sugar, manifesting in various forms such as fibres, pellets, films, and fragments. These microplastics ranged in size from 0.1 mm to 5 mm.

Notably, iodised salt exhibited the highest concentration of microplastics, primarily in the form of multi-coloured thin fibres and films.

The study analyzed 10 types of salt (including table salt, rock salt, sea salt, and local raw salt) and five types of sugar purchased from both online and local markets. These microplastics were found in various forms, including fibers, pellets, films, and fragments, with sizes ranging from 0.1 mm to 5 mm. The much over-hyped iodized salt had the highest concentration of microplastics (89.15 pieces per kilogram), while organic rock salt had the lowest (6.70 pieces per kilogram). This discovery underscores the need for comprehensive research into the long-term health impacts of microplastics on human health, as these tiny plastic particles can enter our bodies through food, water, and air.

The potential health risks of consuming microplastics are a growing concern. Although research is ongoing, below are some known and suspected effefood. 
1. Gastrointestinal Issues: Microplastics can accumulate in the digestive tract, potentially causing irritation, inflammation, and disruption of gut microbiota.

2. Toxic Chemicals: Microplastics can absorb and release toxic chemicals (such as phthalates and bisphenol A) that may leach into the body upon ingestion.

3. Immune System Impact: Exposure to microplastics might affect immune responses, althoLgh the exact mechanisms are not fully understood.

4. Organ Damage: Some studies suggest that microplastics could harm organs like the liver, kidneys, and lungs.

5. Cancer Risk: While not definitively proven, there's concern that long-term exposure to microplastics could increase cancer risk.

It is to be noted that minimizing plastic use and supporting sustainable practices can help reduce microplastic pollution.

The Food Safety and Standards Authority of India (FSSAI) has taken swift action in response to the alarming findings from the study by Toxics Link.

In March 2024, FSSAI launched an ambitious project titled “Micro-and Nano-Plastics as Emerging Food Contaminants: Establishing Validated Methodologies and Understanding the Prevalence in Different Food Matrices.”

On August 18, 2024, FSSAI then launched an innovative project to address the growing concern of microplastic contamination in Indian food. The project aims to develop and validate analytical methods for detecting micro and nano-plastics in various food products. It also assesses their prevalence and exposure levels in India.

FSSAI collaborates with leading research institutions across the country, including the CSIR-Indian Institute of Toxicology Research (Lucknow), ICAR-Central Institute of Fisheries Technology (Kochi), and the Birla Institute of Technology and Science (Pilani).

The project focuses on developing standard protocols for micro/nano-plastic analysis, conducting intra- and inter-laboratory comparisons, and generating critical data on microplastic exposure levels among consumers.

While global studies highlight the presence of microplastics in various foods, this project specifically generates reliable data for India. It will guide the formulation of effective regulations and safety standards to protect public health.

The project aims to:

• Develop Detection Methods: FSSAI is working on standard protocols to detect micro and nano-plastics in food items. 
• Assess Prevalence: By assessing the prevalence and exposure levels of these harmful particles, FSSAI aims to improve food safety across India.
• Establish Safety Standards: The initiative focuses on understanding the prevalence of microplastics in different food matrices, which are the materials that make up the food products we consume.

This proactive step by FSSAI underscores the gravity of microplastic contamination and its potential health risks.

India’s Wind Energy Installations Down by 32% YoY in Q2 2024

In Q2 2024, India added 770 MW of wind energy capacity, which is a 32% decrease compared to the 1,139.9 MW added in Q2 2023, according to Mercom India Research. This decline was primarily due to delays in granting grid connectivity, land availability issues, right-of-way challenges, and the early onset of the monsoon in some states.

Karnataka led the capacity additions with 450 MW, followed by Tamil Nadu with 186 MW, Gujarat with 130 MW, and Maharashtra with 4.2 MW. Despite the quarterly drop, the cumulative installed wind capacity in India rose to 46.6 GW by the end of June 2024.

During Q2 2024, several notable wind energy projects were commissioned in India. Juniper Green’s 25.2 MW Wind Power Project in Gujarat. ReNew Power and a few other companies also commissioned significant capacities during this period.

As of the end of Q2 2024, India's cumulative installed wind energy capacity reached 46.6 GW. This represents a 1.7% increase from the 45.9 GW recorded at the end of March 2024.

Wind energy projects in India face several challenges. Securing land for wind farms can be difficult due to high land costs, legal disputes, and opposition from local communities. Delays in obtaining grid connectivity approvals and inadequate transmission infrastructure can hinder project timeliness.

Besides these, frequent changes in policies and regulations, along with the shift to auction-based tariffs, have created uncertainty and slowed down project implementation.

By 2030, India aims to achieve a cumulative installed wind energy capacity of 140 GW. However, experts suggest that a more realistic target might be around 100 GW by the end of the decade.

In June, Indian government approved the Viability Gap Funding (VGF) scheme to support the development of offshore wind energy projects. The scheme has a total outlay of ₹7,453 crore, which includes ₹6,853 crore for the installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu) and ₹600 crore for upgrading two ports to meet the logistics requirements.

Accenture Estimates That AWS Can Help Indian Organisations Reduce Associated Carbon Emissions by Upto 99% Compared to On-Premises

AWS can help Indian organisations reduce carbon emissions of AI workloads

New study estimates workloads optimised on Amazon Web Services (AWS) can help organisations in India reduce associated carbon emissions by up to 99% compared to on-premises

A new study commissioned by Amazon Web Services (AWS) and completed by Accenture shows that an effective way to minimise the environmental footprint of leveraging Artificial Intelligence (AI) is by moving IT workloads from on-premises infrastructure to AWS cloud data centres in India and around the globe. Accenture estimates that AWS’s global infrastructure is up to 4.1 times more efficient than on-premises. For Indian organisations, the total potential carbon reduction opportunity for AI workloads optimised on AWS is up to 99% compared to on-premises data centres.

The research states that simply utilising AWS data centres for compute-heavy, or AI, workloads in India yields a 98% reduction in carbon emissions compared to on-premises data centres. This is credited to AWS’s utilisation of more efficient hardware (32%), improvements in power and cooling efficiency (35%), and additional carbon-free energy procurement (31%). Further optimising on AWS by leveraging purpose-built silicon can increase the total carbon reduction potential of AI workloads to up to 99% for Indian organisations that migrate to and optimise on AWS.

“Considering 85% of global IT spend by organisations remains on-premises, a carbon reduction of up to 99% for AI workloads optimised on AWS in India is a meaningful sustainability opportunity for Indian organisations,” said Jenna Leiner, Head of Environment Social Governance (ESG) and External Engagement, AWS Global. “As India accelerates towards its US$1 trillion-dollar digital opportunity and encourages investments into digital infrastructure, sustainability innovations and minimising IT related carbon emissions will be critical in also helping India meet its net-zero emissions by 2070 goal. This is particularly important given the rising adoption of AI. AWS is constantly innovating for sustainability across our data centres —optimising our data centre design, investing in purpose-built chips, and innovating with new cooling technologies - so that we continuously increase energy efficiency to serve customer compute demands.”

“This research shows that AWS's focus on hardware and cooling efficiency, carbon-free energy, purpose-built silicon, and optimized storage can help organizations reduce the carbon footprint of AI and machine learning workloads,” said Sanjay Podder, global lead for Technology Sustainability Innovation at Accenture. “As the demand for AI continues to grow, sustainability through technology can play a crucial role in helping businesses meet environmental goals while driving innovation.”

Sustainable chip technology innovation – purpose-built silicon

One of the most visible ways AWS is innovating for energy efficiency is through the company’s investment in AWS chips. Launched in 2018, the custom AWS-engineered general purpose processor, Graviton, was the first-of-its-kind to be deployed at scale by a major cloud provider. The latest Graviton4 offers four times the performance of Graviton, and while Graviton3 uses 60% less energy for the same performance as comparable Amazon EC2 instances (where the compute happens in a data centre), Graviton4 is even more energy efficient.

AWS customers are also benefiting from the carbon reduction potential of Graviton. Paytm, India’s leading payments and financial services distribution platform, witnessed a reduction in workload carbon intensity by adopting Graviton processors, reporting up to 47% estimated decrease in carbon emissions per transaction. Similarly, IBS Software, a leading SaaS solutions provider to the global travel industry, reported that other than improving performance and reducing cost by adopting Graviton processors, the company saw a 40% reduction in carbon emissions per instance hour.

Running generative AI applications in a more sustainable way requires innovation at the silicon level with energy efficient hardware. To optimise performance and energy consumption, AWS developed purpose-built silicon like the AWS Trainium chip and AWS Inferentia chip to achieve significantly higher throughput than comparable accelerated compute instances. AWS Trainium cuts the time taken to train generative AI models—in some cases from months to hours. This means building new models requires less money and power, with energy-consumption reductions of almost one third/up to 29%. AWS Inferentia is AWS’s most power-efficient machine learning inference chip. AWS Inferentia2 machine learning accelerator delivers up to 50% higher performance per watt and can reduce costs by up to 40% against comparable instances. These purpose-built accelerators enable AWS to efficiently execute AI models at scale. This translates to a reduced infrastructure footprint for similar workloads, resulting in enhanced performance per watt of power consumption.

Improving energy efficiency across AWS infrastructure

Through innovations in engineering—from electrical distribution to cooling techniques, AWS’s infrastructure is able to operate closer to peak energy efficiency. AWS optimises resource utilisation to minimise idle capacity, and continuously improves the efficiency of its infrastructure. For example, AWS removed the large central Uninterruptible Power Supply (UPS) from its data centre design to instead use small battery packs and custom power supplies that AWS integrates into every rack, which has improved power efficiency and has further increased availability. Every time power is converted from one voltage to another, or from AC to DC and vice versa, some power is lost in the process. By eliminating the central UPS, AWS are able to reduce these conversions. Additionally, AWS have optimised rack power supplies to reduce energy loss in that final conversion. Combined, these changes reduce energy conversion loss by about 35%.

After powering AWS’s server equipment, cooling is one of the largest sources of energy use in AWS data centres. To increase efficiency, AWS uses different cooling techniques, including free air cooling depending on the location and time of year, as well as real-time data to adapt to weather conditions. Implementing these innovative cooling strategies is more challenging on a smaller scale at a typical on-premises data centre. AWS’s latest data centre design seamlessly integrates optimised air-cooling solutions alongside liquid cooling capabilities for the most powerful AI chipsets, like the NVIDIA Grace Blackwell Superchips. This flexible, multimodal cooling design allows AWS to extract maximum performance and efficiency whether running traditional workloads or AI models.

According to the study, AWS’s additional carbon-free energy procurement in India contributes 31% in carbon emissions reduction for compute-heavy workloads and 44% for storage-heavy workloads. Aligning with Amazon's commitment to achieving net-zero carbon emissions across all operations by 2040, AWS is rapidly transitioning its global infrastructure to match electricity use with 100% carbon-free energy. Amazon met its 100% renewable energy goal seven years ahead of schedule. In India 100% of the electricity consumed by AWS data centres was matched with renewable energy sources procured in country in 2022 and 2023. This is due to Amazon’s investment in 50 renewable energy projects in India with an estimated 1.1 gigawatts of renewable energy capacity, enough energy to power more than 1.1 million homes in New Delhi each year.

57% of Indian Enterprises Allocate Less Than 30% of Technology Spending to Digital Spend – Dassault Systèmes–NASSCOM Report

• Virtual Twin Technology Impact Report from Dassault Systèmes and nasscom Highlights 2x Growth in Virtual Twin Adoption in India
• 90% of the enterprises surveyed are aware of digital and virtual twins
• 45% of virtual twin deployments take nearly 12-24 months at each level, indicating the time-intensive technology discovery-to-production cycle with each new virtual twin implementation
• 33% of the virtual twin initiatives in life sciences are driven by top leadership (CXOs), compared to just 22% on average
• 3X more life sciences companies indicate dependence on downstream companies’ virtual twin adoption for their own virtual twin impact

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) and nasscom today released a report on the adoption and impact of virtual twin technology. The report reveals a twofold increase in virtual twin implementations post-pandemic. Virtual twin adoption in India could play a crucial role in accelerating the design-to-realization process, helping organizations achieve their sustainability and circularity goals across the value chain.

Here are the key findings for India:

Digital and Process Maturity

• 57% of Indian enterprises allocate less than 30% of technology spending to digital spend
• Over 50% of the enterprises also indicate patchy digitalization, with only the key functions digitalized, but in silos, thereby limiting effective ROI realization
• Less than 1-in-5 companies have put in place advanced process automation; the majority have implemented Retrofitted Process Automation (RPA)

Virtual Twin Budgets and Scale

• 25% of the companies do not have formal budgets for virtual twins
• 80% of the companies have less than 7% of tech spend allocated to virtual twin adoption
• 63% of Indian companies deploy virtual twins at the product or process level. 40% of those companies are at the product level in using virtual twins, 23% at the process level. Precision in product-market fit came as one of the top three objectives for implementing virtual twins.

Deployment Time

• 75% of virtual twin implementations in India take between 12-24 months of deployment time at each level of product, process, or system virtual twin

Primary Business Objectives

• Precision in product market fit
• Manufacturing process efficiencies
• Remote maintenance and worker safety

Supplier Strategy

• 75% of Indian enterprises cite supplier selection as a major challenge
• 50% are evaluating suppliers

Tech Readiness

• 70% of Indian firms indicate that across software, IT-OT hardware, and connectivity tech, they are still in the PoC/pilot stages
• Analytics and AI/ML applications are some of the least productionized, after high-definition 3D software and other specialist applications. 
• 67% of enterprises seek either best-of-breed software packages or partner with large managed service providers for their virtual twin applications. 

This report is based on a survey of 130 companies in India as well as across Europe and APAC, focusing on large and mid-sized enterprises with annual recurring revenue (ARR) of $500 million and above. The survey spans four major industry segments: continuous manufacturing, discrete manufacturing, public infrastructure and smart cities, and life sciences and healthcare.

“Virtual twin technology is poised at the brink of transformative potential, marked by a sharp increase in awareness and early adoptions since the pandemic. Although full-scale implementations and dedicated budgets remain limited, the focus on optimizing assets and processes opens up expansive opportunities. Overcoming hurdles in software procurement, enhancing top-level commitment and ecosystem synergies can unlock groundbreaking innovations, driving industries toward a more efficient and digitally integrated future,” said Sangeeta Gupta, Senior Vice President & Chief Strategy Officer at Nasscom.

“With our latest report on virtual twin technology impact and adoption in collaboration with nasscom, we are encouraged by the significant growth in adoption and the emergence of industry-specific use cases. Our report underscores the imperative for organizations to secure top leadership commitment and navigate software procurement challenges to achieve production-grade capabilities. We remain committed to empowering businesses in their journey towards enhanced performance and operational efficiency through virtual twin technology, driving sustainable growth and innovation across industries,” said Deepak NG, Managing Director, India, Dassault Systèmes.

For more information:

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

Link to the report: https://tinyurl.com/VirtualTwins

Results of World’s 1st In-Flight Study of Commercial Aircraft Using 100% Sustainable Aviation Fuel is Out, and Its Promising

• In-flight measurements from an A350 aircraft using 100% sustainable aviation fuel (SAF) show a significant reduction in soot particle emissions and formation of contrail ice crystals compared to using conventional aviation fuel
• Global model simulations estimate 26% reduction in contrails' climate impact when using 100% SAF

The world's first in-flight study of commercial aircraft using 100% sustainable aviation fuel (SAF) has is out now and has shown promising results. The study, which involved an Airbus A350 aircraft powered by Rolls-Royce Trent XWB engines, revealed a significant reduction in soot particle emissions and the formation of contrail ice crystals when compared to conventional Jet A-1 fuel.

The Emission and Climate Impact of Alternative Fuels (ECLIF3) study, in which Airbus, Rolls-Royce, the German Aerospace Center (DLR) and SAF producer Neste collaborated, was the first to measure the impact of 100% SAF use to emissions from both engines of an Airbus A350 powered by Rolls-Royce Trent XWB engines and followed by a DLR chase plane.

To give an idea of what contrails are, — the white streaks you see coming off high-flying jet airplanes are called contrails, which is short for condensation trail. Contrails are clouds that form when water vapor condenses and freezes around small particles (aerosols) in aircraft exhaust.

The impact of contrails was estimated to be reduced by at least 26 percent with 100% SAF use compared to contrails resulting from the Jet A-1 reference fuel used in ECLIF3.

Key findings from the study include:

• A 56% reduction in the number of contrail ice crystals per mass of unblended SAF consumed.
• An estimated 26% reduction in the climate impact of contrails, according to global model simulations by the German Aerospace Center (DLR).

The results suggest that using 100% SAF could significantly reduce the short-term climate impact of aviation by reducing non-CO2 effects such as contrails, in addition to lowering CO2 emissions over the lifecycle of SAF. This is a clear indication of the effectiveness of SAF towards climate-compatible aviation and a step forward in mitigating the environmental impact of air travel.

These results show that using SAF in flight could significantly reduce the climate impact of aviation in the short term by reducing non-CO2 effects such as contrails, in addition to reducing CO2 emissions over the lifecycle of SAF.

Click here to read the full report.

Meta Partnered Bain & Company for India-based Report on Impact of Generative Al–powered Conversational Commerce

Meta has collaborated with Bain & Company to produce the "Win With Conversations" report, which offers valuable insights into the evolving landscape of digital platform conversations. The report highlights the transformative impact of generative AI-powered conversational commerce in India.

Key findings from the report include:

• A significant growth in digitization in India, with over 650 million active social media users, yet only 30% shop online.
• Among small merchants, only 15% of the formalized small businesses are selling online.
• There's a strong user preference for conducting transactions via conversational journeys, especially for high-frequency interactions like accessing bank statements, booking travel, and paying utility bills.
• Over 60% of large enterprises plan to increase spending on conversational platforms in the next 3–4 years, and 80% are planning to invest in generative AI within the next 1–2 years.

According to the report, GenAI-powered conversational commerce is set to significantly boost business growth in India. The integration of generative AI with conversational platforms is transforming the way businesses interact with customers, offering a more personalized and efficient shopping experience. Here are some additional insights:

1. Increased Consumer Reach: GenAI-powered conversational messaging platforms could bring an additional 450 Million Indian consumers to e-commerce.

2. Investment Surge: A substantial 60% of large enterprises plan to increase their spending on conversational platforms over the next 3–4 years, with 80% planning to invest in generative AI within the next 1–2 years.

3. Enhanced Customer Engagement: About 70% of surveyed large enterprises are already engaging with half of their customer base using conversational platforms.

4. Business Messaging Growth: Business messaging is seen as a key growth driver, with 60% of WhatsApp users in India messaging a business every week.

The "Win With Conversations" report by Bain & Company and Meta underscores the potential for conversational commerce to redefine customer engagement and provide businesses with a competitive edge. As digital adoption grows, leveraging GenAI in conversational commerce will be crucial for businesses aiming to tap into the vast, untapped market of online shoppers in India.

The report underscores the potential for conversational commerce to engage the next wave of consumers and the importance for businesses to adapt to this trend for sustained growth and customer engagement. It's a clear indication that businesses are recognizing the need to leverage AI and conversational platforms to build stronger connections with their customer base.

India Is Now The 'Cancer Capital' In The World

The term "Cancer Capital" has been used in a recent reports to describe India due to its high trajectory of cancer cases surpassing global rates. The Health of Nation Report by Apollo Hospitals, released on World Health Day 2024, highlighted a concerning surge in non-communicable diseases (NCDs) across India, including cancer.

The 4th edition of the Health of Nation Report by Apollo Hospitals, launched on World Health Day 2024, indicates that one in three Indians is pre-diabetic, two in three are pre-hypertensive, and one in ten suffers from depression, with NCDs manifesting at increasingly younger ages.

In India, the most prevalent cancers among women are breast, cervix, and ovary, while among men, they are lung, mouth, and prostate. Despite the lower median age for cancer diagnosis in India compared to other countries, cancer screening rates remain remarkably low, according to the hospital’s release.

This situation calls for immediate interventions and emphasizes the importance of regular health screenings to mitigate risks associated with NCDs. It's a complex issue that involves healthcare infrastructure, public awareness, and access to medical facilities. The report suggests that comprehensive screenings are becoming more common, indicating a growing awareness of health and wellness among the populace.

The Report provides a comprehensive analysis of the non-communicable diseases (NCDs) landscape in India. Here are some key highlights from the report:

Rising Incidence of NCDs: The report emphasizes the alarming increase in NCDs in India, including cancer, diabetes, hypertension, cardiovascular diseases, and mental health issues.

Cancer Capital Concern: It notes the escalating incidence of cancer in India, which is higher than global rates, leading to the term "cancer capital of the world" being used in reference to India.

Younger Age Manifestation: There is a noted trend of NCDs manifesting at increasingly younger ages, indicating a shift in the health landscape.

Importance of Regular Health Screenings: The report highlights the critical role of regular health screenings in reducing blood pressure and body mass index levels, which can lower the risk of cardiac-related ailments.

Technology and Preventive Healthcare: Apollo Hospitals is integrating technology to improve disease prevention and diagnosis accuracy, aiming to provide personalized and effective healthcare services.

The report underscores the urgent need for interventions to combat the growing epidemic of NCDs and stresses the importance of educating the public and creating individualized preventive healthcare solutions.

Recommendations

Apollo Hospitals recommends several measures to address the rising incidence of cancer in India, focusing on prevention, early detection, and lifestyle changes. Here are some key recommendations:

1. Primary Prevention: This includes reducing or eliminating exposure to carcinogens, such as tobacco and alcohol, which are significant risk factors for various cancers.
2. Education: Compulsory education about the risks associated with tobacco, unhealthy sexual habits, and the benefits of a cancer-preventive diet is emphasized.
3. Diet and Nutrition: A balanced diet rich in micronutrients, proteins, and non-nutrients can have protective effects and help prevent cancer. Reducing the intake of red meat and fat, which are associated with an increased risk of colon and breast cancers, is also recommended.
4. Vaccination: Vaccines against oncogenic agents like the Human Papillomavirus (HPV) for cervical cancer prevention and hepatitis B for liver cancer prevention are encouraged.
5. Screening: Regular health screenings, including tests for breast, cervix, colon, prostate, lung, skin, and oral cancers, are crucial for early detection.
6. Lifestyle Modifications: Avoiding tobacco and alcohol, maintaining a healthy weight, and engaging in regular physical activity are recommended to lower cancer risk.

These recommendations aim to create awareness and encourage proactive health management to reduce the burden of cancer in India. For more detailed information and personalized advice, it's best to consult with healthcare professionals at Apollo Hospitals

Indians Streaming F1 Races in 2023 Witnessed 50% Increase; Pathan, Jailer, Farzi Most Watched Movies: Fire TV Report

Cricket was one of the most streamed content in 2023: Amazon Fire TV Streaming Trends Report

• Pathan, Jailer, Farzi, Drishyam 2, and Rocky Aur Rani were some of the most-watched movies
• Comedy, thriller, and drama were some of the most popular genres of content watched by Fire TV users
• Tarak Mehta ka Ulta Chashma, Big Boss, Anupama, Ramayan, and CID were the most voice-searched Indian titles
• One in every three Fire TV users enjoyed playing music through Amazon Music, Spotify and others music apps on Fire TV
• Indians across 99% of the pin codes have purchased Fire TV Stick devices

Indians spent more hours streaming cricket vs entertainment content during domestic and international cricket tournaments in 2023 as per Amazon Fire TV Streaming Trends Report. Published by Amazon, the annual edition of the report captures aggregated insights on how Indian viewers consumed content on their Fire TV devices in 2023. Data reveals that Maharashtra, Delhi, Andhra Pradesh, Karnataka, and Tamil Nadu streamed more hours of cricket than other states on Fire TV.

In 2023, Indian households spent around four hours per day streaming their favorite movies, shows, cricket matches, playing games, and listening to music, through Fire TV. A family in Delhi streamed 5.4 hours every day in 2023, the highest by any Indian household through Fire TV.

Favorites on Fire TV: Sports, Kids’ content, news, and TV shows

• Besides cricket, Fire TV users also enjoyed streaming F1 races. Viewership for F1 races witnessed a 50% increase from last year
• Kids’ related apps saw approximately 31% increase in monthly streaming hours per customer. Some of the popular apps include YouTube Kids, ChuChu TV, HappyKids and others
• Fire TV users also enjoyed playing music on their TV. Last year, one in every three users played music through Amazon Music, Spotify, and other music apps through Fire TV.
• Fire TV users made the most of free (ad-supported) streaming platforms. Apps such as YouTube, miniTV, MX Player, and others saw approximately 23% year-over-year increase in streaming hours

Users enjoy the convenience of Alexa’s universal voice search on Fire TV

• Approximately 80% of Fire TV users took Alexa’s help in searching and navigating through their favorite content across 12,000 apps, controlling their Alexa-enabled smart home appliances, setting reminders, etc.
• Comedy, thriller, and drama were some of the most popular genres of content watched by Fire TV users. Tarak Mehta ka Ulta Chashma was the most voice-searched Indian title, followed by Big Boss, Anupama, Ramayan, and CID to name a few
• Parents of young kids used Alexa to search and play popular kids’ shows namely Cocomelon, Peppa Pig, and Chhota Bheem through Fire TV.

Indians across 99% of the pin codes have purchased Fire TV devices

• With thousands of positive reviews and a 4+ rating on Amazon.in, Fire TV Sticks have been bought by Indians across 99% of the pin codes of the country

From Kavaratti in Lakshadweep, Port Blair in Andaman and Nicobar, Kamrup in Assam, Papum Pare in Arunachal Pradesh, to Purnia in Bihar – families enjoyed the streaming experience offered by Fire TV

Fire TV users enjoyed streaming Prime Video movies and originals

• Some of the most streamed movie on Prime Video were Pathan, Bawaal, Rocky aur Rani, Jailer, Drishyam 2, Pippa, and Mast Mein Rehne Ka
• Popular Prime Video original series streamed by Fire TV users were Farzi, Dahaad, Jubilee, and Made In heaven, to name a few

About Fire TV

Fire TV is the one-stop destination for all the streaming needs and brings together 12,000+ channels, apps, and Alexa skills for a flexible, easy-to-use, and personalized experience. It is built on the Fire OS and it converts your normal TV to a smart TV. It supports all the major OTT apps like Amazon Prime Video, Netflix, YouTube, JioCinema, ZEE5, Sony Liv, and much more. With Fire TV devices one can keep the whole family entertained. There’s a little something for everyone, be it kids, elders, movie buffs or sports fans. Kids have a whole range of content that can be accessed like Chu Chu TV, YouTube Kids, to name a few. Press and hold the voice/ Alexa button on the Fire TV remote and ask Alexa to find, launch and control content. Easily search and enjoy thousands of movies, TV shows, apps, and games. Alexa can also play music, control compatible- smart home appliances, answer questions, read the news, check the weather, and set alarms. Customers can choose from a range of devices such as Fire TV Stick, Fire TV Cube, and Smart TVs with Fire TV built-in. For more information visit http://Amazon.in/firetv

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalised recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire TV, Amazon Echo, and Alexa are some of the things pioneered by Amazon. For more information, visit www.aboutamazon.in and follow @AmazonNews_IN.

Domestic Shipping Companies Could See Decline in Revenues by 5-7% Next Fiscal: CRISIL

Shippers see a further revenue dip of 5-7% next fiscal as charter rates course correct

Healthy profits and modest capex spend to support credit profiles

Domestic shipping companies could see their revenue decline 5-7% next fiscal as charter rates continue to normalise. This follows a steep fall of 23-25% this fiscal, after the 35% growth spurt in fiscal 2023 when charter rates had surged because of geopolitical conflicts (including the Russia-Ukraine war) and higher demand from China post-pandemic.

While the margin profile may vary widely across players operating in different segments, average operating margin may continue to moderate to 33-35% in the next fiscal driven mainly by the correction in charter rates. However, it will remain higher than the pre-pandemic levels of 25-30%. This along with modest capital expenditure (capex) plans, should sustain the healthy credit risk profiles of shipping companies.

Charter rates for tankers and dry bulk carriers in USD/day

A CRISIL Ratings study of five shipping companies, which account for about half of the ~20 million metric ton (MMT) deadweight tonnage (DWT)1 of shipping fleet in India, indicates as much.

Shipping fleet of domestic companies is dominated by tankers that carry crude oil and petroleum products (contributing to ~70% of total DWT), followed by dry bulk carriers carrying unpackaged commodities such as coal, iron ore and grains (~20%). The balance is distributed between container ships, gas carriers and others.

The charter rates correlate with the global demand-supply dynamics.

Anuj Sethi, Senior Director, CRISIL Ratings, said, “We are seeing charter rates for crude and product tankers correcting 20-25% this fiscal from the average of ~$50,000/day last fiscal, as global uncertainties (caused by Covid-19 followed by geopolitical conflicts) ease. Expecting the current trend in global trade continues, charter rates could further moderate next year, but will remain higher than the pre-pandemic level, supported by buoyant tonne-mile2 demand and limited new fleet deliveries.”

Charter rates for crude oil and petroleum product tankers will be supported by growing imports by China and India; also, to be aided by better fleet utilisation given higher tonne-mile demand due to change in trade routes following the Russia-Ukraine conflict. On the supply side, capacity addition for tankers is expected to remain limited given the decadal-low orderbook, which will keep charter rates much higher than the pre-pandemic level of $15,000-25,000/day.

As for dry bulk, charter rates are expected to remain range-bound this fiscal and the next, with moderate growth in demand for key commodities, especially iron ore and coal (accounting for 40-45% of the global dry-bulk trade), and moderate fleet orders. Average charter rates had declined last fiscal due to lower demand of these and other key commodities due to subdued industrial/construction activities in major economies.

These corrections seen in charter rates will also impact operating profitability of shipping companies.

Says Joanne Gonsalves, Associate Director, CRISIL Ratings, “We expect average operating margins of shipping companies to moderate 300-500 basis points to around 38-40% this fiscal and further to 33-35% in fiscal 2025 as charter rates normalise. Albeit, operating margins will continue to remain higher than pre-pandemic levels. We also expect credit profile of shipping companies to remain stable, benefited by healthy cash flows and limited debt addition as no major fleet addition is planned. This will ensure comfortable debt metrics, despite a slight moderation from fiscal 2023 levels.”

Investments in Indian Agri-Tech Startups Fell By 45% in FY22—FY23

FSG Report Reveals Latest Investment Trends and Emerging Themes in

India’s Agricultural Technology Sector

Investments in Indian agri-tech start-ups fell by 45% between FY22 and FY23, primarily due to a hike in global interest rates and heightened investor caution amid rising uncertainty. Meanwhile, global agri-tech investments declined by 10% between calendar years 2022 and 2023, reveals consulting firm FSG’s new report, `India’s Unfolding Agri-Tech Story: Updates and Emerging Themes in India’s Agricultural Technology Sector’.

While FY22 witnessed a boom in agri-tech start-up investments, which drove start-up valuations to unprecedented heights, the correction in FY23 has led to a more prudent investment climate.

In a positive trend, start-ups operating in the mid-stream agri-tech category in India are starting to mature, as the bulk of investments (~75%) in this space are now in growth (Series B and C) and late (Series D+) stages, FSG’s analysis shows.

FSG is a global mission-driving consulting firm that partners with corporations and foundations to create equitable systems change. Its new report is a significant update to its insightful Agri-tech Report 2022, “What’s Next for Indian Agri-Tech?” 

The latest report delves into the dynamic changes that have shaped the Indian agri-tech landscape over the last year, providing valuable insights into investment trends, the evolution of agri-tech start-ups, and the growing emphasis on sustainable and climate-smart agriculture. Some of the key findings of the report are as follows:

Investment slowdown: India’s agri-tech sector witnessed its most successful year in terms of venture capital funding in FY22, followed by a significant decline in FY23 amid a global funding slowdown. While the number of investment deals rose from 121 in FY22 to 140 in FY23, the total funding raised by agri-tech start-ups in India fell from US$ 1,279 million in FY22 to US$ 706 million in FY23.

Going forward, FSG expects the funding slump to continue into FY24, before springing back in FY25. It expects that start-ups will continue focusing on profitability to tide over the next financial year. Investors are likely to continue being cautious, and direct their limited funding towards established business models, such as follow-on funding for companies in the mid-stream agri-tech category.

Mid-stream maturation: Mid-stream tech has consistently had higher ticket sizes when compared with up-stream start-ups, starting from FY20. The report highlights that mid-stream agri-tech start-ups have begun to mature, with investments primarily in growth and late-stage funding rounds. For example, 56% of investments in start-ups focusing on output linkages and quality management were in their growth and late stages. The corresponding figure for other mid-stream start-ups, such as those offering agri-carbon or agri-fintech solutions, was as high as 91%.

Many of mid-stream tech start-ups have also ventured into inorganic expansion through strategic acquisitions.

Early-stage deals in upstream tech: While the up-stream tech category has seen a sharp rise in total investments over the last two years, early stage deals (pre-seed to Series A) continue to be the dominant investment stage in this category, accounting for ~50% of total investment.

Traditional companies alter course:  Traditional agriculture companies expanded their footprint across the value chain through inorganic growth, spin-offs, and pilot ventures. However, over the last two years, several key players announced plans to consolidate and streamline pilot projects, and to try to re-focus closer to their core business.

FSG expects this trend to continue into FY24, with traditional companies continuing to adopt a cautious approach, and expanding into areas adjacent to their core business line, rather than placing big bets in new value chain stages where they have limited expertise, resources, and farmer networks. 

Sustainability and climate focus: Sustainable solutions and climate-smart agriculture have emerged as key focus areas in the Indian agri-tech sector, driven by a growing focus on environmental conservation and climate resilience, and supported by several government initiatives.

Commenting on the trends identified by the firm, Rishi Agarwal, Managing Director, Head-Asia, FSG, said, “The shift in investment dynamics highlights the Indian agri-tech sector’s sensitivity to global economic trends. Start-ups must use periods of slower investment to refine their business models and drive towards profitability. These moments can be invaluable for building a robust foundation that can withstand market fluctuations.”

He added, “Those in the upstream agri-tech space can seize this moment to innovate and capture market share, while midstream start-ups must focus on sustainable growth strategies, leveraging their maturing status and acquisition capabilities. The decision by some key traditional agriculture companies to streamline pilot projects and focus on their core business suggests a need for a strategic pause to recalibrate their approach. This strategic shift must be executed thoughtfully to ensure they remain agile in responding to the evolving market dynamics. Balancing consolidation with continuous innovation is a tightrope they must walk.

FSG’s report provides invaluable insights for industry stakeholders, investors, and policymakers seeking to navigate the evolving agri-tech landscape in India. With the data-driven analysis and forward-looking perspectives presented in this update, organizations can make informed decisions to thrive in this dybnamic sector.

“With government facilitating collectivisation, mechanization, and digitization of Indian farms, there are plenty of emerging opportunities available for agri-tech innovations that address the key farmer problems of agro-climatic information, yield management, and price realization. Just like UPI facilitated a paradigm shift in the Indian financial sector a unified digitized land and soil database can provide significant grassroots impact,” said Agarwal.

“The emphasis on sustainable solutions and climate-smart agriculture, bolstered by government support, signals a significant paradigm shift. Agri-tech’s transition towards sustainability isn’t merely a trend; it’s an absolute necessity. Innovations in sustainable farming practices and technologies are poised to be the driving force behind the sector’s future growth and resilience. Companies that prioritize eco-friendly solutions and climate-smart practices today will not only meet consumer demands but also ensure the long-term viability of the sector,” he added.

About FSG: 

FSG is a global mission-driven consulting firm that partners with foundations and corporations to create equitable systems change. Through customized consulting services, innovative thought leadership, and learning communities, we're working to create a world where everyone can live up to their full potential. 

FSG serves as a strategic advisor to leaders and teams at corporations on how they can leverage their core business, CSR, and philanthropic activities to create a more equitable and sustainable world while strengthening their competitive positioning and profitability.

We believe real change requires an expert understanding of systems. As advisors and facilitators who blend rigorous data analysis with empathy, we are comfortable working in complex environments with clients, partners, and community members. We share the insights from our work on topics that range from equity and shaping markets to strategy, learning, and evaluation. With our partners, we develop initiatives and grant-funded programs to put some of those insights into practice. These efforts include Talent Rewire (engaging employers for equitable economic mobility), GLOW (empowering women in India), PIPE (supporting activity-based learning in India), and Collective Impact Forum.

To learn more, please visit: www.fsg.org

Strict Rules Against AI Tools Like ChatGPT in Schools – UNESCO

UNESCO on Thursday published its first guidance on use of Generative AI (GenAI) for education, urging governmental agencies to regulate the use of the technology, including protection of data privacy and putting an age limit for users.

In new guidance for governments, the UN’s education body UNESCO is calling on Governments across the world to implement appropriate regulations and teacher training, to ensure a human-centred approach to using Generative AI in education.

The UNESCO Guidance sets an age limit of 13 for the use of AI tools in the classroom and calls for teacher training on this subject.

In its guidance report, UNESCO said, "Publicly available generative AI (GenAI) tools are rapidly emerging, and the release of iterative versions is outpacing the adaptation of national regulatory frameworks. The absence of national regulations on GenAI in most countries leaves the data privacy of users unprotected and educational institutions largely unprepared to validate the tools."

“Generative AI can be a tremendous opportunity for human development, but it can also cause harm and prejudice,” said Audrey Azoulay of UNESCO.

In a recent UNESCO global survey, it was found that over 450 schools and universities showed that less than 10% of them had institutional policies and/or formal guidance concerning the use of generative AI applications, largely due to the absence of national regulations.

Students have taken a liking for GenAI, which can generate anything from essays to mathematical calculations with just a few line of prompts.

Among a series of guidelines in a 64-page guidance report, UNESCO stressed on the need for government-sanctioned AI curricula for school education, in technical and vocational education and training.

Presently in India, there's no law to regulate the AI sector. In April this year, the Ministry of Electronics and IT had said that it is not considering any law to regulate the AI sector, with Union IT minister Ashwini Vaishnaw admitting that though AI “had ethical concerns and associated risks”, it had proven to be an enabler of the digital and innovation ecosystem.

However, last month Prime Minister Narendra Modi’s call for a global framework on the expansion of “ethical” artificial intelligence (AI). In July, India's telecom regulatory body TRAI proposed for immediately establishing an independent statutory authority for ensuring development of responsible AI and regulation of use cases in the country.

Generative AI hit public awareness last year in November with the launch of ChatGPT, which became the fastest growing app in history.

While ChatGPT reached 100 million monthly active users in January 2023, only one country has released regulation on generative Al in July.

Moving forward with UNESCO guidance report, it further states – "The most fundamental perspective of the long-term implications of GenAI for education and research is still about the complementary relationship between human agency and machines. One of the key questions is whether humans can possibly cede basic levels of thinking and skill-acquisition processes to AI and rather concentrate on higher-order thinking skills based on the outputs provided by AI."

Writing, for example, is often associated with the structuring of thinking. With GenAI, rather than starting from scratch to plan the aims, scope and outline of a set of ideas, humans can now start with a wellstructured outline provided by GenAI.

"Some experts have characterized the use of GenAI to generate text in this way as ‘writing without thinking’ (Chayka, 2023). As these new GenAI-assisted practices become more widely adopted, established methods for the acquisition and assessment of writing skills will need to adapt." - the UNESCO Guidance report mentions.

One option in the future is that the learning of writing may focus on building skills in planning and composing prompts, critical evaluation of the GenAI outputs, higher-order thinking, as well as on co-writing based on GenAI’s outlines.

In concluding remarks the UNESCO Guidance report states — "From the perspective of a human-centred approach, AI tools should be designed to extend or augment human intellectual abilities and social skills – and not undermine them, conflict with them or usurp them, said UNESCO."

While GenAI should be used to serve education and research, we all need to be cognizant that GenAI might also change the established systems and their foundations in these domains. The transformation of education and research to be triggered by GenAI, if any, should be rigorously reviewed and steered by a human-centred approach.

India Fintech A $400 Bn Value Creation Opportunity by 2030, Says The Bottomline Report by Elevation Capital

Elevation Capital, India’s leading early-stage venture capital firm, today unveiled its in-depth report on the Indian Fintech sector, titled ‘The Bottomline: Elevation Fintech Report 2023’, with the support of ‘McKinsey & Company’ as the knowledge partner. India’s fintech ecosystem, the third-largest globally, is expected to reach a scale of ~$70Bn in annual revenue by FY30, accounting for 18-20% of the addressable financial services revenue pool. The report presents Elevation’s 4Es framework — Expansion, Experience, Efficiency, and Enablement — dimensions across which fintechs have created value, and provides a macro view of fintechs in India, encapsulating their journey so far and their impact on the financial services ecosystem. The report can be viewed and accessed at bottomline.elevationcapital.com.

The report serves as a blueprint for $400Bn of value creation set to happen in the fintech sector by 2030 (4X growth from today). The report captures Elevation’s deep thesis on the fintech sector, insights from a comprehensive survey of 70+ industry experts and conversations with 20+ industry leaders from prominent fintechs and financial services, which includes Ajay Rajan (Head of Digital and Transaction Banking, Yes Bank), Anup agarwal (Co-founder & CEO, Mintifi), Anurag Sinha (Co-founder, Onecard), Archit Gupta (Founder & CEO, Clear), Asish Mohapatra (Co-founder & CEO, OfBusiness), Atulya Bhat (Co-founder, Jodo), Hrushikesh Mehta (Senior Vice President - Financial Services, ONDC), Madhusudanan R (Co-founder, M2P Fintech), Nitin Chugh (Deputy Managing Director and Head of Digital Banking, State Bank of India), Nitin Gupta (Founder & CEO, Uni Cards), Sameer Shetty (Head, Digital Business And Transformation, Axis Bank), Sandeep Jathwani (Co-founder, Deserv) Sashank Rishyasringa (Co-founder, axio), Srivatsan Sridhar (Founder & CEO, Skydo), Varun Dua (CEO, Acko), Vamsi Madhav (Deputy Managing Director and Head of Digital Banking, COO & Founding member, Sahamati), Vijay Shekar Sharma (CEO, Paytm) among others.

84% of survey respondents expect fintechs to play a significant or dominant role going forward, with SME Lending, Retail Lending, Fintech SaaS and Wealth (advisory & brokerage) being categories that will see the most fintech growth and innovation, according to the respondents. However, industry participants believe that for continued growth, fintechs will need to overcome a few challenges, such as achieving sustainable profitability, ensuring a regulatory-compliant business model, and adhering to risk and security standards.

The report comes at a time when India’s fintech ecosystem is at an inflection point, showcasing immense headroom for growth relative to its global counterparts. As a precursor to the next phase of the report, Elevation offers a glimpse into the ‘10 Key Themes’ that will shape the future of fintech value creation in India and the key elements to build an enduring & profitable fintech franchise.

Mridul Arora, Partner, Elevation Capital, said, “India is today setting the template for the rest of the world with its innovative models in fintech and financial services. Our fast-growing digital population, world-class Digital Public Infrastructure (DPI), and proactive regulators are three key tailwinds underpinning the fintech growth, which will expand into a $400Bn opportunity by 2030.”

“Fintechs have emerged as significant players, making meaningful headways into key categories and capturing a sizable market share of 3-5% of India’s very large and growing financial services revenue pools. They are creating and will continue to create value across the 4Es of Expansion, Efficiency, Experience, and Enablement. Over the next decade, we expect this value creation to accelerate, catalyzed by India’s Digital Public Infra, allowing fintechs to capture 12-15% of the financial services revenue pool by 2030," said Vaas Bhaskar, Principal, Elevation Capital.

Key findings from the report

• With more than 9K+ fintechs, India is home to 3rd highest number of fintechs globally
• Fintech funding in India has tripled in 2022 since 2018
• Fintech is now capturing ~14% share of India’s startup funding
• Fintechs are capturing a meaningful market share across key financial service categories
• ~70% of digital payment transactions are captured by fintechs, with the share of fintechs increasing ~2.3X in FY22 from FY19
• ~50% of active broking accounts on NSE are held by fintechs - again, the share of fintechs has grown ~4x from FY19 to FY22
• Share of insurtechs, specifically in sectors such as motor insurance, have grown ~5x since FY19 to FY22 & fintechs are capturing ~5% of the share of gross written premium underwritten. This share is expected to increase significantly over the next decade
• Amidst the perfect storm of disruption in India’s Financial Services landscape, Fintechs have emerged to play a significant role:
• They have captured material share in key categories (e.g. payment gateways, small ticket personal loans, BNPL lending) and rapidly growing share in others (card issuing, wealth & insurance distribution) and, as a result, already drive 3-5% of India’s financial services revenue pools
• From a qualitative standpoint, fintechs have created value across 4Es -
• Expanded access, introducing millions of consumers to digital FS
• Set the bar on Experience - giving customers a world-class experience
• Defined the Efficiency paradigm - improved turnaround times for opening accounts, credit decisions, improved operating costs with the use of tech
• More broadly, Enabled the modernization of India’s financial services - by developing new & improved tech stacks.
• Multiple tailwinds have underpinned fintech growth.
• Fast-growing digital population: 200M+ users digitally transact via smartphones
• Rapid digital banking penetration: From 2018 to 2021, digital banking penetration has grown 3X in India. 
• World-class public infrastructure: The emergence of infrastructure such as Aadhar, Digilocker, UPI, GST, Account Aggregator, and large open networks such as ONDC and Agri stack are enabling fintechs
• 99% of the population has digital IDs via Aadhar
• 300M monthly eKYC transactions
• UPI has grown to >8B transactions per month
• 100M+ bills are paid via BBPS monthly
• 2M account aggregator consent requests processed per month
• Enabling regulatory environment: Increased engagement between fintechs & regulators
• Across categories, Fintech's role will be nuanced – varying between that of a shaper, attacker and catalyst
• Shaper: Set the paradigm & lead in market share - in sectors such as consumer payments, B2B SaaS point solutions, digital brokerage
• Attacker: Challenge incumbent market share - in sectors such as credit cards, motor insurance, core B2B SaaS platforms
• Catalyst: Creating and expanding new FS categories - in sectors such as business insurance, cross-border payments

About Elevation Capital

Elevation Capital is a leading venture capital firm that provides seed and early-stage capital for emerging companies in India. Elevation Capital has been investing in India since 2002, deploying almost $2 billion of capital in over 150 companies. The firm announced its eighth pool of capital of $670 million in April 2022. The firm is led by Co-Managing Partners Ravi Adusumalli and Mukul Arora, along with Partners Mridul Arora and Mayank Khanduja. The firm has invested in over 150 companies across Consumer Internet, SaaS, Fintech, Consumer Brands, Edtech, Healthtech and Web3/Crypto and has offices in Bengaluru, Gurgaon and Salt Lake City.