Renowned economist and AI policy expert Professor Susan Athey believes that while global artificial intelligence models have made rapid advances, they still fall short when it comes to local customisation — a gap that presents a major opportunity for India.
Speaking on the future of AI deployment, Athey argued that most leading AI systems are designed with a “one-size-fits-all” mindset, limiting their effectiveness in diverse societies like India.
The customisation gap in global AI
According to Athey, many large AI models are trained primarily on data from a narrow set of geographies, languages, and cultural contexts. As a result, they struggle to fully understand:
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Local languages and dialects
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Region-specific social norms
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Informal economic systems
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Public service delivery challenges
“AI works best when it understands the environment it operates in,” she noted, adding that insufficient localisation reduces the real-world impact of these technologies.
Why India stands out
India’s diversity — often seen as a challenge — could be its biggest strength in the AI era. Athey pointed out that India offers:
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Large-scale, multilingual data
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Complex public systems that demand tailored solutions
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A growing pool of AI talent and startups
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Government-led digital infrastructure such as digital identity and public platforms
This combination makes India an ideal testing ground for context-aware AI solutions.
From global models to local intelligence
Rather than relying entirely on imported AI models, Athey suggested India should focus on building systems that:
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Adapt to local languages and accents
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Reflect regional governance needs
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Address sector-specific problems in health, education, agriculture, and justice
Such models may not always be the biggest or most powerful globally, but they could be far more useful domestically.
Opportunities for Indian startups
Indian startups, she said, are well positioned to fill this gap by creating:
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Domain-specific AI tools
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Regionally trained language models
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Affordable AI solutions for small businesses and public services
Unlike global tech giants, local firms can design products with on-the-ground realities in mind.
The role of policy and regulation
Athey emphasised that smart regulation will be critical. Instead of restricting innovation, policies should encourage:
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Ethical data use
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Transparency in AI decision-making
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Responsible deployment in sensitive areas
Clear rules, she argued, can actually boost trust and adoption rather than slow progress.
A strategic moment for India
With AI reshaping economies worldwide, Athey believes India is at a pivotal moment. If it invests in customised, inclusive, and purpose-driven AI, the country could emerge not just as a user of global technology — but as a leader shaping how AI serves diverse populations.
“The future of AI won’t be about who builds the biggest model,” she said, “but who builds the most relevant one.”
The bigger takeaway
Professor Athey’s message is clear: AI’s next leap will come from relevance, not scale. For India, that shift could open doors to innovation, leadership, and global influence — if it chooses to build technology that truly reflects its people and needs.
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