"AI is one of the most important things humanity is working on. It is more profound than electricity or fire." - Sundar Pichai, Google
Can UPI model be used for AI in India
There is no doubt about the huge success of the Unified Payment Interface (UPI) of India, as a digital solution for millions each hour. India uses UPI as a template for digital success, but applying this model to artificial intelligence may not be wise. Unlike payments solutions like UPI, AI as a field evolves through complex global layers of code, data, and hardware.
Global supply chains vs. national control
The AI supply chain is deep and broad, and global in nature. Nations cannot control it through licensing because firms adapt by reconfiguring frameworks. Success depends on global interconnectedness rather than state-led insulation. UPI's is a different case.
Centralized resource allocation
Subsidizing compute power often distorts market incentives. Innovation thrives on diverse problem-solving, whereas centralized provision rewards those who navigate administrative committees rather than those with actual technical expertise.
Why protected firms struggle abroad
Protecting national champions often creates local heroes that remain globally irrelevant. Models succeed when they are useful in the international arena, not when they rely on state mandates or domestic subsidies.
Sovereignty through participation not insulation
True sovereignty comes from diffusion of capability across the ecosystem. Policy should focus on research and skills, as progress often stems from small, independent teams rather than concentrated state control.
Summary
UPI worked because payments are a narrow and standardizable problem. However, AI is a global ecosystem requiring decentralized innovation. Managing AI through state-led centralization risks creating local firms that cannot compete globally, which would ultimately stall India's own long-term technological progress.Food for thought
Can a nation achieve true leadership by insulating itself from the global networks that drive innovation?AI concept to learn: Compute Power
Compute power refers to specialized hardware, mainly graphics processing units, needed to train models. It acts as a critical fuel for modern AI development within the global supply chain. This resource works best when balanced with data and engineering talent.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
