- India is emerging as a leading hub for AI applications and economy, says WEF's Cathy Li
- India's tech-positive population and software skills drive its AI economy growth
- Global AI investment has reached $600 billion since 2010, but returns remain low
India has become a premier hub for artificial intelligence applications, leveraging its tech-positive population and software legacy to transition into a 'full-on AI economy', according World Economic Forum's Cathy Li.
Speaking to NDTV Profit at the 2026 Annual Meeting in Davos, Li, who serves as the Head of AI data and Metaverse at WEF, labelled India's market potential as undeniable, at least when it comes to AI.
"India is such a fascinating market, particularly in terms of AI applications and services. To me, it's a no-brainer that you want to leverage, and you are already leveraging all of those great building blocks to move into a full-on AI economy," she said.
Li went on to highlight India's status as a 'digital advanced nation', thanks to its citizens who are optimistic towards emerging technologies. She noted that India's extensive data reserves and software know-how are now serving as the backbone of its tech-powered growth.
Li's statements come at a time when global investment in AI infrastructure has surged, reaching nearly $600 billion since 2010. Li described this shift as the fastest large-scale capital allocation in modern history. Despite the massive spending, however, she warned of a 'capability overhang', noting that only 5% of those investments have seen a real return.
"95% of organisations are not seeing the return because they haven't fully integrated AI into their whole core operations," she said. "They're only scratching the surface."
“AI is so much more than a chatbot,” Li said, emphasising that the next phase of competition will be won by those who can deploy verified, trusted governance at scale. This puts India in a favourable position as the nation has speedily implemented Agentic AI for practical use, rather than focusing on building large language models.
Li expressed high expectations for the upcoming AI summit in New Delhi, stating she is “excited... to see what India can do”.
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