All the sectors across the country are utilising the boom of generative AI to enhance their business opportunities. India’s top software-as-a-service firms are not behind. They are predominantly investing and exploring the possibilities of generative AI to attract investors and eventually reduce customer acquisition costs. From developing new AI capabilities to interacting with AI chatbots like ChatGPT in customer-related operations, these firms are discovering the new potential of AI in the sector.

From the companies’ pov

Zoho, one of the SaaS giants in India, announced the launch of 13 generative AI application extensions and integrations backed by ChatGPT. Ramprakash Ramamoorthy, the Director of AI research at Zoho, says, “The fusion of ChatGPT’s generative AI with our home-grown AI features will provide users with a more intuitive, efficient and secure experience, reflecting Zoho’s deep R&D first culture”.

Generative AI and Conversational AI have been getting a lot of attention since the launch of ChatGPT last November. It has become the buzzword that even started attracting software giants like SAP to Indian SaaS and tech companies.

Various SaaS companies building in the chat space believe in the potential of generative AI. Companies like Mad Street Den and ManageEngine are reportedly building AI products that are more customer-centric.

The managing partner of SaaS-based venture capital firm Upekkha said, “Most people are underestimating the impacts of AI and Indian SaaS companies are starting to realise that there is no playbook to build on an existing AI but to build something on their own”. However, most investors opine that the companies that build their own playbook to join the AI ride will play better.

A report by Stellaris Venture Partners and World Bank Group branch, International Finance Corporation claimed that Indian SaaS startups that integrate AI in their work could create $500 billion in market value by 2030. The report titled “AI-enabled SaaS: The next frontier for global SaaS startups from India” read, “India’s AI opportunity could create more than 900,000 white-collar jobs and 3.6 million new indirect jobs by 2030. We believe that globally, AI represents around $900 billion revenue opportunity by 2030 from infrastructure, applications and services”.

The rising demand for AI upskilling

The chief human resource officer at a SaaS firm responds, “The demand for AI talent is going up today; the existing engineering talents are also getting trained in various AI-related skills such as data analysis, machine learning, data science and other specified areas like natural language processing, image and voice recognition tools etc.”

Various skills remain a threat, and there is a shortage of AI talent all over India and around the globe that needs to be bridged as quickly as possible. The CHRO added, “Even though layoffs are happening on one side, companies are ready to pay a lot for specific AI-related talent. This segment is a hit. IITs and IIMs have already picked up this trend”.

The fear of job loss and data security

The CEO and co-founder of Zoho, Sridhar Vembu, said that the quick growth of AI, especially conversational AI platforms like ChatGPT and GPT4, has become a threat to the workforce, especially the programmers. Vembu has also reportedly submitted a proposal to the government along with Rajiv Kumar, former NITO Aayog vice- chairman and Sharad Sharma, the co-founder of the iSPIRIT foundation, to request the government to implement an AI policy that prioritises credibility and transparency.

Along with the risk of job loss, many founders and investors also expressed their worries about the risk of data security as well.

Various SaaS firms raised their concerns regarding the sharing of data to these Generative AI platforms, which may take some parts of confidentiality that every founder should be wary of. 

• https://www.moneycontrol.com/news/business/announcements/indian-saas-firms-want-to-ride-the-generative-ai-wave-to-attract-customers-investors-10638251.html
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