The Rise of Generative AI and Its Potential

Generative AI (Gen AI) has rapidly transformed the technological landscape since the launch of ChatGPT in November 2022. This technology, capable of creating compelling narratives, vivid visuals, and even software code, has taken the world by storm. Major players such as Anthropic’s Claude AI, Google’s Gemini, Meta’s Llama, and Replit’s Co-Pilot have all contributed to its swift evolution. However, amidst this global competition, a critical question arises: How can Indian startups carve a niche in the Generative AI space?

Challenges and Opportunities for Indian Startups

Sam Altman, CEO of OpenAI, has suggested that developing foundational AI models like those at OpenAI could be challenging for emerging teams in India due to limited resources. This raises the question: Can Indian startups rise to the challenge, and how can they do so effectively?

Big Engines vs. Domain Expert Services

To understand how Indian startups can excel in the Gen AI space, it is crucial to differentiate between two main types of AI services: big engine services and domain expert services.

Big Engine Services

Big engine services involve developing and deploying large-scale Gen AI models that can perform a wide range of tasks across various domains. These services require substantial computational power, massive datasets, and specialized technical knowledge, making them feasible primarily for established tech giants or well-funded startups.

Domain Expert Services

In contrast, domain expert Gen AI services focus on creating specialized models tailored to specific industries or use cases. While general models can be fine-tuned to meet specific needs, they often lack the precision required for industry-specific applications. This is particularly critical in sectors like finance and healthcare, where accuracy and compliance are paramount.

The Path to Domain Expert AIs

To achieve domain expertise, it’s essential to understand the two components of Gen AI models: Natural Language Understanding (NLU) and the generative part.

Natural Language Understanding (NLU)

NLU involves understanding the query received, which can be effectively handled by global big engine models. These models are adept at extracting the meaning of a query due to their extensive training on diverse datasets.

The Generative Part

The generative part, which creates the answers to queries, must be customized from the ground up using domain-specific data. This approach ensures that the AI produces relevant and accurate responses based solely on the context and data it has been trained on, avoiding the pitfalls of using global data that might lead to unpredictable outputs.

Leveraging India’s Strengths

Indian startups have a unique opportunity to lead in the development of specialized AI models by leveraging several key strengths:

Skilled Professionals and Multidisciplinary Teams

India has a wealth of skilled professionals across various sectors, enabling the formation of dynamic, multidisciplinary teams. These teams, combining AI technologists with industry experts, can pioneer innovative AI solutions tailored to specific domains.

Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO)

India’s established base in BPO and KPO provides a rich source of initial datasets for AI models. These sectors can serve as a robust foundation for developing domain-specific AI solutions, thanks to their deep understanding of local markets, customer needs, and industry challenges.

Creating Industry-Specific AI Solutions

By focusing on designing AI solutions tailored to the specific pain points of various industries, Indian startups can offer more than just generic AI services. They can provide highly relevant and effective solutions that resonate with their customers, setting themselves apart and becoming trusted partners within their domains.

Examples of Domain-Specific Applications


Imagine AI doctors providing affordable healthcare advice in rural areas, where access to medical professionals is limited. By training AI models on local medical data and practices, startups can develop solutions that address the unique healthcare challenges faced by these communities.


AI systems can revolutionize how small businesses manage their finances. By developing AI tools tailored to the specific financial needs and regulations of the Indian market, startups can help businesses streamline their operations and ensure compliance.


AI-driven educational tools can personalize learning experiences for students, taking into account their individual strengths and weaknesses. This can be particularly beneficial in a diverse country like India, where educational needs vary widely across different regions.

Conclusion: Seizing the Generative AI Opportunity

Indian startups are uniquely positioned to lead in the Generative AI space by leveraging their deep local insights and industry-specific expertise. By focusing on creating domain-expert AI solutions, they can differentiate themselves from global players and position themselves as invaluable partners to India’s growing businesses.

With global tech giants yet to fully embrace domain-specific AI solutions, Indian startups have a unique opportunity to pave the way in this emerging field. By solving real-world problems with focused AI solutions, they can unlock limitless potential and drive significant advancements across various industries.



Saiba Verma, an accomplished editor with a focus on finance and market trends, contributes to Atom News with a dedication to providing insightful and accurate business news. Saiba Verma analytical approach adds depth to our coverage, keeping our audience well-informed.