The report on "Creating a Business AI Ecosystem: Unlocking Potential and Growth" by the Centre for Digital Economy Policy Research (C-DEP.org), was released by Shri Alkesh Sharma, Former Secretary, Ministry of Electronics and Information Technology, and Member Advisory Board of C-DEP.org. The report was released on November 7th.
The report focuses on the mechanisms and policies required for rapid adoption of AI by Indian businesses. It also emphasises on the need to have differentiated regulatory treatment for Business AI as opposed to Consumer AI, in order to establish an enabling regulatory ecosystem that supports rapid adoption of AI by enterprises in India.
The report highlights the regulatory differentiation arising from the difference in protection needed for consumers versus that of businesses. While Consumer AI interacts directly with personal data and users, Business AI functions within internal enterprise systems such as ERP and CRM, optimise operations and decision-making, with no interaction with personally identifiable information (PII). Extending consumer-level regulations to Business AI, would delay adoption and adversely affect the future competitiveness of Indian enterprises.
The study cautions that India must accelerate AI deployment across business operations to remain globally competitive. It identifies four pathways for AI adoption - (a) Generative AI, (b) Neural Network based AI, (c) In-House AI Solutions, and (d) Embedded AI, and concludes that embedding AI into existing enterprise systems is the most practical and cost-efficient approach. Embedded AI leverages internal business-specific data, accelerates the time-to-value for AI investments, and ensures that businesses can quickly start leveraging AI without overhauling their entire infrastructure or re-skilling the workforce. Embedded AI functions as an intelligent support agent, enhancing real-time decision-making, improving demand forecasting, optimizing supply chains, and strengthening customer engagement.
The report further stresses that Responsible AI, grounded in fairness, transparency, and accountability, must form the foundation of enterprise adoption. This ensures trust and ethical deployment while supporting innovation.
C-DEP recommends a calibrated, risk-based regulatory framework that promotes AI integration while avoiding regulatory overlap. The study concludes that India can strengthen its economic competitiveness and technological leadership by fostering a distinct Business AI ecosystem that is innovative, responsible, and globally aligned.
The report can be found at https://c-dep.org/reports/.
(Disclaimer: The above content is a press release and PTI takes no editorial responsibility for the same.). PTI
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