India's Agentic AI Boom Faces Consumer Adoption Hurdles
Over 100 Indian startups are building autonomous AI agents, but consumer adoption remains low despite enterprise traction. Challenges include infrastructure gaps and unclear value propositions.
The Startup Boom
- 100+ startups emerged in under 2 years focusing on agentic AI (systems performing autonomous actions)
- Key players: Krutrim, Fractal, Sarvam AI, Puch AI, gnani.ai
- Offerings range from personal assistants (Krutrim's Kruti) to vertical-specific tools (Fractal's Kalaido and Vaidya)
Consumer Adoption Challenges
- Despite 750M smartphone users, consumer-facing AI agents see negligible adoption
- Most offerings remain proof-of-concept with:
- Limited user data
- Poor retention metrics
- Unproven monetization
- Even government's Bhashini voice translator struggles with traction
Enterprise Shows Promise
- Startups like Meritto and RevRag.AI find steadier ground:
- Education and BFSI workflow automation
- Sarvam's Samvaad platform for Indic language voice agents
- "It's not about inferior tech or lack of money. It's a game of volume and patience," says Ashutosh Singh, RevRag CEO
Systemic Challenges
- Infrastructure gaps hinder scaling
- Bureaucratic hurdles slow enterprise sales cycles
- Consumer skepticism about tangible value
The Road Ahead
- Risk of becoming export-focused tech demos
- Need for:
- Seamless interfaces
- Clear value propositions
- Payment willingness from users
- Without these, India's agentic AI may remain more fiction than function
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About the Author
Dr. Lisa Kim
AI Ethics Researcher
Leading expert in AI ethics and responsible AI development with 13 years of research experience. Former member of Microsoft AI Ethics Committee, now provides consulting for multiple international AI governance organizations. Regularly contributes AI ethics articles to top-tier journals like Nature and Science.