How industries are playing the generative AI game, India’s Tier 2 and 3 boom

Welcome to the first ever issue of the Tech Wrap India, a fortnightly newsletter bringing you the hottest conversations shaping the world of tech right now, brought to you by Isha Chitnis , tech and innovation editor at LinkedIn News India.

This week, let’s dive into why generative AI is all the buzz and experts’ take on what it means for different industries, and why Tier 2 and 3 cities are driving the next wave of digital growth in India.

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Generative AI has kicked up a storm, and sectors across the board have been caught in the whirlwind. From the release of the new and improved GPT-4 to the introduction of Adobe’s family of creative Generative AI, and from the unveiling of Google’s AI-powered workspace to Microsoft’s 365 Co-pilot — the month of March witnessed a wave of generative AI launches.?

How is the IT sector adapting??

Top IT companies like Wipro and Tata Consultancy Services (TCS) are exploring use cases of the technology in marketing, application development, and enhancing customer experience. Infosys and TCS are also looking to introduce courses and skilling modules to train employees on ChatGPT and generative AI.?

It’s important for organisations to ensure that the benefits of generative AI are not limited to just following a market trend, but are in line with the organisation’s growth vision and employee growth path, says Mayurakshi Das , Founder of ElixirAI Pvt Ltd.

The soaring demand for AI skills and talent?

There were 45,000 job openings in India for AI roles last month, with Data Scientists and ML Engineers being the most popular job roles, according to a Teamlease Digital Report. Data visualisation, deep learning, statistics, data analytics, and building conventional ML models are the sought-after skills, and almost 37% of companies are providing employees tools to build an AI-ready workforce, says the report.

Making its mark across industries

?? Music to the ears? “With the right business model, this technology has the potential to transform the industry by empowering many creators to start creating their own music,” says Mansoor Rahimat Khan , Co-founder & CEO at Beatoven.ai, an AI-powered music creator tool.?

?? See Mansoor's post on generative AI's impact on the music industry

?? Acing the game: In the e-sports and gaming industry, Generative AI helps game developers create vast amounts of game content quickly and easily, and can also enhance the gameplay experience, improve accessibility in e-sports, and create more engaging replays, says Zerah Gonsalves , CEO of League of Extraordinary Gamers (LXG).

?? See Zerah’s post on generative AI's role in gaming

??Going green: In the near future, Co-Founder & COO of Recykal, Abhishek Deshpande , expects generative AI to be used to create closed-loop systems, and promote circularity and sustainability at the consumer level.

?? See Abhishek’s post on the power of generative AI in sustainability

??A new way to learn: From creating personalised and adaptive learning experiences for students to increased automation of administrative tasks like grading and scheduling — Head of Developer Relations at DevRel and author of books on AI and GPT-3 Shubham Saboo shares how generative AI is transforming education.

?? See Shubham’s post on the impact of generative AI on education

?? The future of marketing: “From chatbots to personalised content creation to data visualisation, the possibilities are endless. As more companies adopt generative AI, we can expect to see it integrated into every aspect of marketing,” says Uttam Gupta , Growth Marketing, GrowthSchool.

?? See Uttam’s post on the future of marketing in the AI age

How do you see generative AI transforming your industry? Share your take using #TechWrapIndia

Be it growth in gaming, e-commerce spending, hiring or startup activity — Tier 2 and 3 cities are at the core of India’s digital growth story.

Almost 50% of the recognised startups in India are based out of tier 2 and 3 cities, and faster internet, access to a massive talent pool, better transport, and quality infrastructure at a lower cost are some factors contributing to this trend.?

The increased availability of skilled workforce and commercial space, local duty incentives and tax exemptions are also driving Global Capacity Centres to move to Tier 2 cities, says an EY report. Many companies have already opened up GCCs in Visakhapatnam, Coimbatore, Jaipur, Vadodara, Kochi, and Chandigarh.

IT giants like TCS and Infosys opened new offices in Tier 2 cities last year, and software-as-a-service firms are also eyeing Tier 2 and 3 cities for skilled talent and operating out of and hiring talent from cities like Nagpur, Patna, Buldhana, and Latur.

Propelled by the thriving talent pool and increasing corporate and startup footprint, Tier 2 cities are also emerging as fast-growing office real estate markets, and attracting top developers, says a report from late last year.

?? See Kamal Karanth 's post breaking down the Tier 2 and 3 talent trends

What’s a VC’s take on this growth story? “The pandemic has made it easier for start-ups to work away from hubs and yet have access to talent across the country,” says Pearl Agarwal , Founder and Managing Director at Eximius Ventures. She adds that the key areas where start-ups from Tier 2 cities have an advantage and are increasingly building towards include vertical healthtech solutions and B2B Commerce. She expects the latter to emerge with more gusto in the future as local businesses grow to power local economies.

?? See Pearl Agarwal's post on Tier 2's startup growth story

What tech, innovation and startup trends do you see emerging in India’s Tier 2 and 3 cities? Share your take using #TechWrapIndia.

Keep up with and contribute to the top conversations about tech and innovation:

?? Co-Founder The Moms Co Mohit Sadaani shares tips to connect and build trust with potential investors

?? Vignesh Kumar, Director of Commerce Lifecycle Operations, India at Cisco shares how embracing generative AI will be the game changer for businesses

?? Founder and Managing Director at Eximius Ventures Pearl Agarwal 's take on the future of India's gaming industry

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