New Delhi [India], April 29 : Artificial Intelligence (AI) is reshaping core modernisation across India's public and private sectors, with Government, Banking and Telecom leading the way, according to Deloitte's Tech Trends - India Perspective report.
The report said that AI is enabling more efficient data sharing and smoother user experiences in these sectors.
"AI is reshaping core modernisation across India's public and private sectors. Core systems in government services, banking and telecom are becoming AI-first, enabling more efficient data sharing and smoother user experiences," said the report.
"However, these innovations are challenging, requiring complex architectural changes to ensure scalability, security and long-term sustainability," the report further added, pointing out the challenges.
The report adds that Indian businesses are increasingly adopting small, multimodal models to meet the demand for more efficient, faster and targeted solutions.
The report also highlights that integrating SLMs, AI-based simulations and task-specific AI agents will drive the development of more personalised and contextaware solutions across industries.
"Across Indian organisations, AI is not just a trend but a powerful force weaving together technological advancements and driving India's growth as a global leader in innovation," said Abhrajit Ray, Partner and CIO Program Leader, Deloitte India.
"Another interesting trend we have observed is the growing role of context-aware intelligence in transforming how industries operate and interact. Indian enterprises are moving beyond automation to deploy technologies that interpret, adapt and act in real time, making digital transformation more fluid, inclusive and future-ready," he added.
The report highlights that the AI driven research and development (R&D) activities in Global Capability Centers (GCCs) are accelerating innovation in sectors such as pharmaceuticals, automotive, banking and telecom, fostering collaboration between global firms and India's talent pool.
As per the report, India is rapidly emerging as a global hotspot for AI, with key cities such as Bengaluru, Hyderabad, Mumbai, Chennai, Pune and the National Capital Region (NCR) at the forefront of this transformation. Abundant talent, supportive policies, cutting-edge research institutions and a surging demand for AI-driven technologies power these AI clusters.
These cities serve as thriving hubs for GCCs, fuelling business innovation and accelerating technological advancements.
Per the report, the rapid growth of GenAI has put hardware back at the centre of the technology conversation. What was once considered a settled, largely static and commoditised layer, with only incremental improvements over product cycles, is now being reimagined to meet the demands of advanced AI systems.
From the Internet of Things to robotics, AI-powered hardware is transforming industries, enabling smarter devices and more efficient systems, creating new opportunities for innovation, the report added.
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