We are working to make AI a horizontal workload: Intel India MD

Post-pandemic, a key realisation is the significance of semiconductors, the fundamental building blocks of digitisation. With the rise of AI, their role has become more prominent, fuelling the next wave of innovation. This understanding also highlighted the importance of a globally balanced and diverse supply chain, with a widespread recognition that a resilient supply chain is essential, and every major entity considering how to contribute to that balance. This shift is taking place at a macro level. 

Intel has been on a journey to build a globally balanced supply chain. Our focus remains on ensuring our process technology is competitive and delivering the best products. This strategy is coming to life and we are on our way to achieving our goals. 

A key change implemented early last year was designating India as a separate region to accelerate its growth and innovation. India is now the fifth standalone region globally. Previously, there were four regions, with the last separation 17 years ago when China was moved out of the APJ region. Over the past 15–17 years, China has seen tremendous growth, becoming a major hub. We believe India is now at a fulcrum point. By establishing it as a separate region, we aim to increase market velocity and adopt a more tailored approach. This change helps us focus on building localised products, addressing market-specific needs, and ensuring India receives the attention necessary for its continued growth. 

There are two key aspects. The first is product development—specifically, design and the value engineers here bring to creating innovative products and intellectual property on a global scale. This capability is now well-established. Intel was one of the earliest companies to invest in India, growing our design center and strengthening our presence long before many others saw the opportunities. Over the years, we have continued to thrive and expand in this area.

The second is market development. I remember visiting smaller markets across India and educating people on building PCs. Back then, there were no established OEM brands—only DIY brands. We introduced programs like the Genuine Intel Dealer (GID) initiative, which laid the foundation for our channel partners network in India. As the market evolved, India expanded into laptop manufacturing. We worked closely with companies like Wipro and HCL, among the early OEMs in India, helping them develop and launch products in India simultaneously with the Western markets. Intel played a pivotal role in shaping the country’s IT ecosystem, which has since grown into a thriving industry.  

Intel India is our largest design and engineering site outside of the US. We have a strong presence across all business units and key functions, ensuring India plays a critical role in Intel’s global operations. With design and engineering, we are engaged in customer interactions nationwide.

However, the bigger picture shows India is still not materially big in ICT spending. The numbers indicate a significant room for growth. For example, India accounts for less than 3 per cent of the world’s servers, despite producing 20 per cent of global data, meaning we are not yet a major server market. Most server infrastructure is still concentrated in the Western world and, to some extent, in China.

While PC adoption is growing, India is the third-largest market globally, with around 14 million units. However, China sits at around 65 million units, and the US has 80 million units. The gap is still significant. Similarly, for leading technology companies, India’s share is often in the single digits of its global revenue. While we don’t break down region-wise revenue, looking at other large companies provides a clear indication—India is still a smaller piece of the global revenue mix. 

However, India’s digital adoption is scaling rapidly, our economy is growing faster, and as spending increases, we will move toward greater market significance. India represents both a growth and an innovation story. Unlike other markets that followed a linear progression, it can leapfrog technologies—like in the mobile era, skipping fixed broadband and directly adopting mobile broadband.

A key area I advocate for is education. The use of computers in Indian education is still minimal. With AI transforming how we work and learn, education must become more technology-driven. If we fail to integrate technology into education, we risk creating a workforce ill-equipped to work with AI-driven systems. Employees entering the workforce will be expected to collaborate with AI agents, with those lacking the skills left behind. If this shift is done correctly, it could significantly impact India’s device adoption and digital transformation.

When the Internet first emerged, it was limited to specific locations but today, it’s everywhere and an essential part of our daily lives. AI is following a similar trajectory. It is still seen as niche, with people asking about specific use cases. But that mindset will soon disappear, and AI will become a horizontal technology, seamlessly embedded into everyday workflows. 

At Intel, we are working to make AI a horizontal workload—meaning AI touchpoints will be embedded across everything we do. This will enhance productivity, improve efficiency, and enable better decision-making across various functions. 

India is uniquely positioned to leverage AI due to its large-scale digitisation. We are the only country with a digital identity system at scale, and an open payment transaction network like UPI. This existing digital infrastructure provides a significant advantage for implementing AI-driven solutions at scale. However, India cannot simply follow the AI adoption model of other countries, which often relies on massive infrastructure and heavy investments. Instead, we can implement it in a more frugal and scalable way—one that doesn’t restrict AI to large corporations or major infrastructure players but ensures its benefits are widely accessible. That is a real opportunity we must unlock.