01 INDIA’S DIGITAL

ECONOMY 07 GENERATIVE AI STARTUP

ECOSYSTEM IN INDIA

02 INDIA’S STARTUP
ECONOMY 08 LIST OF 30 ACTIVE GENERATIVE
AI STARTUPS IN INDIA

03 ARTIFICIAL INTELLIGENCE: AT THE

CENTRE STAGE OF WORLD’S FIFTH
INDUSTRIAL REVOLUTION
09 GENERATIVE AI MARKET
OPPORTUNITY: INDIA & THE WORLD

04 WHAT IS
GENERATIVE AI 10 GENERATIVE AI APPLICATIONS
IN INDIA

05 ARTIFICIAL INNOVATION
LIFECYCLE 11 KEY CHALLENGES & GROWTH
DRIVERS IN INDIA

06 GENERATIVE AI: INDIAN STARTUP

LANDSCAPE
India To Have 900 Mn+ Active Internet Users By 2025
By 2025, 56% of all new internet users will be from rural areas, and 65% of new internet users will be female

% Growth
2022 2025 (E) (Absolute)

Smartphone Internet Penetration 5G Enabled Indian

931 Mn+ 1.1 Bn+ 22% (Active Users) Cities/towns
users
52% 7K+
Internet
users
759 Mn+ 900 Mn+ 19%
Urban Internet Penetration Number Of Male
(Active Users) Internet Users

71% 395 Mn
Urban internet
users 360 Mn+ 396 Mn+ 10%

Cost Of 1GB Number Of Female

Internet Internet Users
Rural internet
users 399 Mn+ 504 Mn+ 26% $0.17 349 Mn

SOURCE: IAMAI, INC42 ANALYSIS

The State Of Indian Startup Economy
3rd Largest Ecosystem In The World 768K+ Jobs Created In The Past Six Years

68K+ Indian Startups Launched To Date $143 Bn+ Funding Raised By Indian Startups

111 Indian Startups In The Unicorn Club 5.3K+ Funded Startups In India

9.5K+ Investors Participated In Startup Funding $500 Bn+ Combined Valuation Of Indian Startups

1.2K+ M&A Deals Recorded 24 Listed Indian Internet Companies

Source: Inc42
Note: Funding data is for the period between 2014 and June 2023
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 5

Artificial Intelligence: At The Centre Stage Of World’s Fifth Industrial Revolution

120 YEARS

30 YEARS

20 YEARS
70 YEARS
Machinery, Computer and
Human-cyber-
Water power, Automation
physical systems
Steam power (HCPS)

Mass production, Internet and 2020

1780 Assembly line, 1970 cyber-physical
Electricity systems

The fifth industrial

revolution will be
impacted by techs like
1900 2000 artificial intelligence,
quantum computing,
and Web3.

Source: A research paper by Xiao Chen (Technical University of Denmark), Inc42 Analysis
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 6

What Is Generative AI
Difference Between Generative AI & Predictive AI
What Is GenAI?
GenAI is a form of artificial intelligence
designed to create new content by learning Features Generative AI Predictive AI
from existing data. Leveraging advanced
algorithms, it produces unique outcomes
that mimic human creativity. Creates new content

What Is Predictive AI? Analyses data

Predictive AI is engineered to forecast

outcomes based on the analysis of Uses machine learning
historical data and existing information.
These systems employ machine learning
algorithms to identify trends and statistical Simulated results
patterns within large sets of data.
Automated Content Generation In Market Forecasting,
Ideal Use Case Text, Image And Video For Areas Data Analytics,
Such As — Marketing, Production, Consumer Intelligence
Music, Among Others

Soure: Google, GEEKFLARE, Inc42 analysis

 © INC42 MEDIA | NOT FOR DISTRIBUTION / 7

Generative AI Vs Predictive AI: What Sets Them Apart

Predictive
Data
ML Model
Output Label
Learns relationship
Labels between data
and label

GenAI Model
Inputs Output New Content
Learns patterns
on unstructured
Unstructured
content
Content

Source: Google’s Introduction to Generative AI

 © INC42 MEDIA | NOT FOR DISTRIBUTION / 8

How Generative AI Works

Generate new Text Generation

content
Training code

Foundation Model Generate new

content Code Generation

Labelled data

Generate new
Image Generation
content

Unlabelled data

Source: Google’s Introduction to Generative AI

 © INC42 MEDIA | NOT FOR DISTRIBUTION / 9

The Generative AI Application Landscape

Marketing (Content)
Gaming
Sales (email)
Code generation Image generation
Support (chat/ email) RPA
Code documentation Consumer/ Social
General writing Music

Text to SQL Media/ Advertising

Note taking Audio

Other Web app builders Design Voice Synthesis Video editng/ scenes 3D Models/ scenes Biology & Chemistry

TEXT CODE IMAGE SPEECH VIDEO 3D OTHER

OpenAi GPT-3 Microsoft X-CLIP DreamFusion

OpenAi GPT-3 OpenAi Dall-E 2 OpenAi
DeepMind Gopher

Facebook OPT Meta Make -A - Video NVDIA GET3D

Tabnine Stablr Diffusion
Hugging Face Bloom
MDM
Cohere Stability.ai Crayon

Anthropic

AI2

Alibaba,Yandex, etc.

Source: Sequoia Capital

 © INC42 MEDIA | NOT FOR DISTRIBUTION / 10

Generative Artificial Intelligence (GenAI) Innovation Timeline

PRE - 2000 2000 2022 2023? 2025? 2030?

Spam detection Basic Copy writing Longer form Vertical fine tuning Final drafts better Final drafts better
TEXT Translation First drafts Second drats gets good ( scientific than the humon than professional
Basic Q&A papers,etc) average writers

Longer form More Languages Text to product Text to product (final)

CODE 1- line auto- complete Multi-line generation
Better accuracy More Verticals (draft) better than full-time
developers

Final drafts better

Art Mock-ups ( product Final drafts (product
than professional
IMAGE Logos design, architecture, design, architecture,
artists, designers,
Photography etc.) etc.)
Photographers

AI Robolox
VIDEO / First attempts at Basic / first draft Second drafts Video games and
3D /
3D/ Video models videos and 3D files movies are
GAMING
personalised dreams

Public Launch of ChatGPT 3 (Nov 2022) Large model availability: First attempts Almost there Ready to prime time

Source: Sequoia Capital

 © INC42 MEDIA | NOT FOR DISTRIBUTION / 11

Key Statistics From Generative AI Startup Ecosystem In India

70+ Native GenAI Startups In India

$440 Mn+ Raised By Native GenAI Startups Since 2019

1 In Every 3 Indian GenAI Startup Is Working In Code & Data Segment

81% GenAI Products From India Have Sector-Agnostic (Horizontal) Use Cases

Bengaluru Is Home To The Highest Number Of GenAI Startups In India

80+ Indian Institutional Investors Have Backed GenAI Startups

88% Indian GenAI Startups Are In Seed Stage

58% Indian GenAI Startups Are Founded In Or After 2021

Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 12

India’s GenAI Startup Landscape

Image Generation &
Audio & Video Code & Data Text & Chatbots
3D Modelling

Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 13

India’s GenAI Startup Landscape: Native Vs Adopters

GenAI Natives GenAI Adopters

GenAI Natives:
Startups that began their
business operations
offering products or
services anchored in
transformer LLM models.

GenAI Adopters:
Startups that initially
launched without
leveraging
transformer-based LLM
models in their products or
services, but later
integrated this technology
into their core or
supplementary offerings.

Source: Inc42
Note: This is not an exhaustive list
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 14

Segment Wise Distribution: GenAI Startups In India

Between 2019 and September 2023, Indian generative AI startups secured over $440 Mn in funding

Application Total Active Total Capital

Layer (Segment)
Use Case Notable Startups
Startups Raised

Code Generation, Text To Sql,

Code & Data 20+ $360 Mn+ Insight Generation, Web/App
Development

Voice Synthesis, Text To Video,

Audio & Video 18+ $33 Mn+
Audio/Video Editing

Image Generation, Editing,

Image Generation 12+ $17 Mn+ Digital Marketing Creatives,
& 3D Modelling 3D Modelling

Note Making, Email Writing,

Text & Chatbots 14+ $34 Mn+ General Writing, Customer
Support

Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 15

One In Three Indian GenAI Startups Target The Code And Data Segment

Code & Data

The Code & Data aspect of
GenAI encompasses features
such as generating code,
crafting documentation, and
Audio & Video converting text to SQL.
Segment (Output)

A range of modern SaaS

startups, from digital
marketing to app
Text & Chatbots development and big data,
are looking to leverage GenAI
to enhance user experience
and streamline operations.
Image Generation
& 3D Modelling

0% 10% 20% 30% 40%

% of total GenAI startups

Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 16

Mapping The States: The Geographic Spread Of India's GenAI Startups

Karnataka hosts 44% of India's generative AI startups

Indian States Total Capital Active GenAI

Notable Active Startups
Raised Startups

Karnataka $401 Mn+ 31+

Delhi NCR 18 Mn+ 13+

Maharashtra $10 Mn+ 10+

Telangana $380K+ 5+

Gujarat $9 Mn+ 3+

Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 17

88% Of India's GenAI Startups Are In Early Stage

Total Capital
Seed Stage Raised
Seed Stage

$50 Mn+
Growth Stage
Growth Stage

$58 Mn+
Late Stage Late Stage

$338 Mn+
0% 25% 50% 75% 100%

% of total GenAi startups

Source: Inc42
Note: We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 18

Investors Backing GenAI Startups In India

Number Of
Notable Funded Startups
Startups Backed

4 Kroop AI, Metabrix, Vitra.ai, Vodex

3 DhiWise, Spyne, dubdub.ai

11 Floworks, Garvik AI, Orbo

2 Spyne, Scalenut

1+ Hexo AI

2 NeuroPixel.AI, REZO

2 DhiWise, hyperagro.ai

Source: Inc42
Note: This is not an exhaustive list | We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
| Only publicly disclosed deals have been considered for this analysis
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 19

Number Of
Notable Funded Startups
Startups Backed

4 Aspiro, Beatoven.ai, NeuroPixel.AI, syncsense

3 Pixis, Unsqript, Visualdub

5 DentalDost, Expertia AI, LimeChat

2 hypergro.ai, NeuroPixel.AI

2 Dubverse, Zocket

2 Observe.AI, WorkHack

3 Alltius, kombai.com, Unscript

2 Contlo, Scalenut

3 Observe.AI, Baselit, Play.ht

Source: Inc42
Note: This is not an exhaustive list | We have only included native GenAI startups for this analysis | Funding data is for the period between 2019 and Q3 2023
| Only publicly disclosed deals have been considered for this analysis
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 20

A List Of Generative AI Startups In India

Company Name Segment Funding Stage HQ Total Funding Notable Investors

Text & Chatbots Seed Stage Bengaluru Stellaris Venture Partner, Gemba Capital,
$2.4 Mn
peercheque

Code & Data Seed Stage Bengaluru $0.2 Mn Indian Angel Network

Code & Data Seed Stage Bengaluru $0.5 Mn Y Combinator

Audio & Video Seed Stage Bengaluru $1.1 Mn Entrepreneur First, Redstart Labs

Image Generation & Editing Seed Stage Bengaluru $3.1 Mn Surge Ventures, Surge, PointOne Capital

Titan Capital, Better Capital, Arjun Vaidya,

Text & Chatbots Seed Stage USA/ Bengaluru $4.3 Mn Varun Alagh, Kae Capital

Code & Data Growth Stage Surat $10 Mn Accel, India Quotient, Dholakia Ventures

Audio & Video Seed Stage Bengaluru Waveform Ventures, Accel Atoms,
$1.8 Mn
Forward Capital Fund, Force Ventures

Audio & Video Seed Stage Delhi NCR Venture Catalysts, Anicut Angel Fund,
$0.3 Mn
First Cheque

Audio & Video Seed Stage Delhi NCR $0.8 Mn Kalaari Capital

Source: Inc42, Secondary Sources

Note: This is not an exhaustive list nor a ranking of any kind | We have only included native GenAI startups in this list
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 21

Company Name Segment Funding Stage HQ Total Funding Notable Investors

Chiratae Ventures, Endiya Partners,

Code & Data Seed Stage Bengaluru $1.1 Mn Google, Entrepreneur First
SenseAI Ventures, Y Combinator,
Code & Data Seed Stage Bengaluru $1.5 Mn Entrepreneur First, AWS

Code & Data Seed Stage Bengaluru N/A AWS

Chiratae Ventures, AWS, MassChallenge,

Text & Chatbots Seed Stage Bengaluru $1.5 Mn FortyTwo VC

Image Generation & Editing Seed Stage Bengaluru $0.3 Mn Antler India

Audio & Video Seed Stage Bengaluru Dholakia Ventures, Huddle, TDV Partners,
$0.9 Mn
Silverneedle Ventures

Text & Chatbots Seed Stage Delhi NCR N/A N/A

Image Generation & Editing Seed Stage Delhi NCR $0.3 Mn Inflection Point Ventures

Foundation Capital,
Code & Data Seed Stage USA/Pune $4.5 Mn Stellaris Venture Partners
Stellaris Venture Partners, Google,
Text & Chatbots Seed Stage Delhi NCR $5 Mn IFC, Pi Ventures

Source: Inc42, Secondary Sources

Note: This is not an exhaustive list nor a ranking of any kind | We have only included native GenAI startups in this list
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 22

Company Name Segment Funding Stage HQ Total Funding Notable Investors

Audio & Video Growth Stage USA/ Bengaluru $12 Mn Matrix Partners, Elevation Capital

Inflection Point Ventures, Entrepreneur First,

Image Generation & Editing Seed Stage Bangalore $1.3 Mn Huddle, Flipkart Ventures, Dexter Angels

Zoom, Bossanova Investimentos,

Code & Data Late Stage USA/ Bengaluru $214 Mn Y Combinator, Menlo Ventures

Venture Catalysts, YourNest Venture Capital,

Image Generation & Editing Seed Stage Mumbai $1.5 Mn AWS, Founders Factory, GenNext Ventures

General Atlantic, Celesta Capital,

Code & Data Late Stage USA/ Bengaluru $124 Mn Chiratae Ventures, SoftBank Vision Fund

Audio & Video Growth Stage USA/ Bengaluru Techstars, Silver Lake, 8VC, Red Ventures,
$12 Mn AV8 Ventures

Indvest Ventures, Dexter Angels,

Text & Chatbots Seed Stage Delhi NCR $0.3 Mn Modulor Capital

Text & Chatbots Seed Stage Delhi NCR Titan Capital, Saama Capital, AngelList India,
$3.5 Mn Amit Singhal, First Principles
All In Capital, Paradigm Shift Capital,
Code & Data Seed Stage Bengaluru $1.2 Mn WEH Ventures, 100x Entreprenuer

Text & Chatbots Growth Stage Bengaluru $16 Mn Tenity, Fractal Analytics

Source: Inc42, Secondary Sources

Note: This is not an exhaustive list nor a ranking of any kind | We have only included native GenAI startups in this list
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 23

Company Name Segment Funding Stage HQ Total Funding Notable Investors

Accel, AngelList India, Storm Ventures,

Image Generation & Editing Growth Stage Delhi NCR $7.0 Mn Abhishek Deo, Pentathlon Ventures
Peak XV Partners, Trajectory Ventures,
Code & Data Seed Stage USA/ Bengaluru $2.3 Mn Eniac Ventures

Stellaris Venture Partners, Ghazal Alagh,

Audio & Video Seed Stage USA/ Bengaluru $1.3 Mn Exfinity Venture Partners, Entreprenuer First

Exfinity Venture Partners,

Audio & Video Seed Stage Bengaluru $1.5 Mn RAAY Global Investments

Text & Chatbots Seed Stage Bengaluru $0.5 Mn 100X.VC, Inflexor, 2AM VC

Audio & Video Seed Stage Bengaluru $0.3 Mn 100X.VC

Alpha Wave Global, CIIE.CO, Artha Group,

Code & Data Growth Stage Mumbai $2.0 Mn Bharat Innovation Fund, Target Accelerator

Code & Data Seed Stage USA Untapped Capital, Pack Ventures, SeaChange,
$1.5 Mn Array Ventures, Upsparks

Code & Data Seed Stage Bengaluru $1.5 Mn Nexus Venture Partners, Together Fund

Kalaari Capital, Kettleborough VC,

Image Generation & Editing Seed Stage Bangalore $3.0 Mn Jasminder Gulati

Source: Inc42, Secondary Sources

Note: This is not an exhaustive list nor a ranking of any kind | We have only included native GenAI startups in this list
If you are an Indian GenAI startup and want to be included in our coverage. Please reach out to us at editor@inc42.com
Generative AI
Market Opportunity:
India & The World
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 25

Key Statistics From The Global Generative AI Market

$4.4 Tn+ 400+

GenAI’s Global Economic GenAI Startups In
Impact The World

Marketing And Advertising $552 Bn+

Top Sector Using GenAI GenAI’ Global Market Size
in 2023 By 2030

$897 Bn+ 10%

Estimated Revenue Generation Share Of GenAI Products And
By GenAI Players By 2030 Services In Corporate IT Spend
By 2030

Source: Mckinsey, Bloomberg, Other Secondary Sources

 © INC42 MEDIA | NOT FOR DISTRIBUTION / 26

Generative Artificial Intelligence (GenAI) Value Chain

Hardware & Cloud Platforms Computer hardware/ infrastructure

providers such as — CPU, GPU, CSP etc.

Foundation Model Developers of API and foundation GenAI

models on which applications are built
Infrastructure Layer

Model Development & Fine Tuning

Tools and software used in development

and fine tuning LLM models and DBs

Application Layer (Text/Image/Code/Audio & Video)

Source: Inc42
Note: This representation includes both international and domestic organisations | This is not an exhaustive list of all the players in the ecosystem
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 27

Global GenAI Market Size To Cross $550 Bn+ By 2030

The overall market size (revenue generation) is estimated to grow at a CAGR of 40% between 2023 and 2030

600 552

377
400
GenAI Revenue ($ Bn)

263

187
200
135
99
72
54

0
2023 2024 2025 2026 2027 2028 2029 2030

Business Services IT Services Advertising Gaming Software (SaaS) Hardware

Source: Bloomberg Intelligence, Inc42 Analysis
Note: The projected market size in this scenario is based on the anticipated percentage of total tech spending devoted to GenAI products and services in the years to come.
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 28

Key Business Domains Where GenAI Can Deliver Significant Value

Represent ~75% of total annual impact of generative AI
500
Sales Approximately 75% of
Marketing Software engineering(for corporate IT) the total value
generated by
Software engineering (for product development) adopting GenAI in
400 business operations
Customer operations
is expected to
originate from these
Product R&D domains.
300
Impact, $ billon

Supply chain
200

Finance Risk and compliance

Manufacturing
100 Talent and organization
Procurement management
Legal
Corparate IT
Strategy
0 Pricing
0 10 20 30 40
Impact as a percentage of unctional spend,%
Source: Mckinsey, Inc42 Analysis
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 29

Generative Al: Opportunities In Al Tooling

Opportunity Description

LLM fine-tuning services Fine-tune pre-trained LLMs for domain-specific language and industry applications.

Model-optimization services Optimize Al models to reduce training, storage, and deployment costs.

Custom Al model development Design and train Al models for specific business use-cases and applications.

Al model management & monitoring Manage and monitor Al models with version control, performance tracking, and bias detection.

Al Produced TDaaS (Training Data as a Service) Massive amount of training data is needed for LLMs and Al models - this data may be generated
by existing Al models as a TDaaS product.

Al-powered data labeling Provide high-quality pre-processed and labeled data using Al for training Al models.

LLMaaS (LLM as a Service) platform Offer subscription-based access to LLMs, tools, and technologies.

Al education and training Train and educate businesses on leveraging Altechnologies for their operations.

Al-powered process automation Develop Al-driven solutions for automating routine tasks and processes.

Al model security & compliance Ensure Al models are secure and compliant with industry regulations and ethical guidelines.

Al model consulting Guide businesses on strategizing and identifying impactful Al implementation use-cases.

Source: All in Capital

 © INC42 MEDIA | NOT FOR DISTRIBUTION / 30

India's Generative AI Market To Surpass $17 Bn By 2030

India's share in the global GenAI market is expected to increase from 2% in 2023 to 3% in 2030.

20

$17 Bn
15

+48% CAGR
Market Size ($ Bn)

10

$1.1 Bn
0
2023 2030

Source: Inc42 Analysis, Gartner

Note: The estimated market size is calculated using India's proportionate share of global software product sales for the years 2023 and 2030.
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 31

Sectors Where GenAI Will Have The Most Impact In India

Sector GenAI Use Case

Ad Copy Text Generation, Branding Creatives, Email Marketing, Customer Targeting/Personalisation,

Marketing & Advertising Custom Client Campaign Report Generation, No-Code Website/App Development

Customer Support, Customer Targeting/Personalisation, No-Code Website/App Development, Product

Ecommerce/Retail
Image/ Video Generation, Marketing And Advertising

AI Tutor, Customised Learning Materials, Automated Assignment Review, Automated Note Making,
Education Customer Support, Marketing And Sales, No-Code Website/App Development

Personalised Invested Recommendation, Customer Support, Marketing And Advertising, Marketing And
Finance
Sales, Custom Market Performance Report Generation, No-Code Website/App Development

Drug Discovery/ R&D, Customer Support, Lab Test Report Generation, Marketing And Advertising, No-Code
Healthcare
Website/App Development, Personalised Health Recommendation Based On Patients Medical History.

Text Content Generation/Editing, Image Generation/Editing, Video Generation/Editing, Ai News Anchors,

Media & Entertainment
No-Code Website/App Development, Customer Support, Marketing And Advertising

SaaS & Software Development Software Product/Application Testing, No-Code 3rd Party Integration, No-Code Website/App Development,
Customer Support, Marketing And Sales, Custom Client Report Generation

Source: Inc42, multiple secondary sources

Note: The sectors and GenAI use cases highlighted in this report are not exhaustive but have been selectively chosen based on the significance indicated during our research
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 32

Five Key Growth Drivers Of GenAI In India

Digitalisation & Cloud Computing:
With more than 759 Mn active internet users, India ranks as the world's second-largest internet user base. Cloud computing in India is estimated to
account for 8% of India’s GDP by 2026, with a potential to add $310 Bn to $380 Bn to the country’s GDP.

Demand For Creative Content:

India's significant consumer base for tech giants like Google, Meta, and Snapchat creates a lucrative marketplace for digital marketing, leading to
increased demand for digital creatives today and in the future.

Access To Structured Data:

The internet has produced enormous volumes of user and business data worldwide, totalling 329 Mn terabytes (TB) each day. Enhanced access to
organised data will significantly enhance AI adoption in the nation, resulting in heightened output accuracy.

New Developments In AI Models:

Just as the 2017 breakthrough in transformer ML models by Google scientists paved the way for the development of today's popular Generative AI
models like ChatGPT and BARD, future innovations in this technology have the potential to broaden its applications across various domains and
industries.

Workflow Automation:
As India aims for a $5 Tn economy by 2030, automation in business operations will play a key role. The adoption of Chatbots in leading Indian startups
and corporations has already disrupted customer support roles, and this trend is likely to continue and expand in areas such as digital marketing, sales,
software development and client servicing.
 © INC42 MEDIA | NOT FOR DISTRIBUTION / 33

Five Critical Hurdles Facing India's GenAI Ecosystem

Lack Of Startups In GenAI Foundation Models:
Among the 50+ Indian GenAI startups we identified for this report, all focus on the application layer, primarily developing apps using models like
ChatGPT, with none involved in creating GenAI foundation models.

High Expense Of GenAI Model Training:

The hardware and infrastructure costs for training large language models are prohibitively high, as exemplified by the need for 285K CPUs and 10K Nvidia
GPUs to train GPT-3.

Issues Of Bias and Inaccuracy:

Biases inherent in the data can be passed on to models trained on large datasets. A major challenge lies in ensuring the fairness and reduction of bias in
the content generated.

Legal And Regulatory Challenges:

In recent years, the Indian government has been regulating emerging tech sectors like fintech, social media, and online pharmacies. Regulations con-
cerning intellectual property, privacy, and content generation rights are likely to be enacted.

Concerns Over Deepfake And Misinformation:

Deepfakes, which are convincingly realistic forgeries generated by models, present ethical issues related to misinformation, privacy, and potential ma-
levolent uses.
www.inc42.com

Inc42 is India’s largest tech media & information platform on a

mission to build & serve India’s tech, startup & internet
CREDITS
economy. ANALYST
SANDEEP SINGH
From breaking the latest news to discovering the hottest
startups, from spotting upcoming trends to simplifying
complex concepts, we cover everything tech in India’s internet DESIGN
economy. SABITH

Born in January 2015, Inc42 has become the leading source for
news & analysis on India’s rapidly growing tech, startup &
internet economy. Inc42, with over 35,000+ published stories,
80+ research reports, 120+ conferences & events & having ADDRESS
featured 1000s of entrepreneurs, now reaches over 25 Mn+ tech Inc42 Media, 59/16, 4th Floor, Jujhar Tower,
leaders & professionals every month. RD Marg, Kalkaji, New Delhi, Delhi 110019

Contact: editor@inc42.com
Disclaimer
The data provided in this report has been obtained from public and private sources. We have made every attempt to ensure that the information
presented in this report is accurate and free from any discrepancies. Ideope Media Pvt Ltd, the parent company of Inc42 Media and Inc42 DataLabs, is
not responsible for any inaccuracy in the information presented or for any damages caused by the use of information provided in this report. In case of
any discrepancy or errors in the data, you can contact us at editor@inc42.com and we will try our best to update the information in the digital version of
the report. We are constantly updating our database of startups due to new person using or relying on any information in this publication.

This report has been prepared in good faith on the basis of information available at the date of publication without any independent verification. Ideope
Media Pvt. Ltd. does not guarantee the accuracy, reliability or completeness of the information in this publication. Readers are responsible for assessing
the relevance and accuracy of the content of this publication. While this report talks about various individuals and institutions, Ideope Media Pvt. Ltd. will
not be liable for any loss, damage, cost or expense incurred or arising by reason of anyperson using or relying on any information in this publication.

This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of
ownership of such trademarks by Ideope Media Pvt Ltd and is not intended to represent or imply the existence of an association between Ideope Media
Pvt Ltd and the lawful owners of such trademarks. Information regarding third-party products, services and organisations was obtained from publicly
available sources, and Ideope Media Pvt. Ltd. cannot confirm the accuracy or reliability of such sources or information. Its inclusion does not imply an
endorsement by or of any third party. The views and opinions in this report should not be viewed as professional advice with respect to your business.