SaaS, AI convergence paves India’s path to global AI leadership: Report
India's software landscape is undergoing a fundamental shift driven by Generative AI, which is perceived as a general-purpose technology akin to steam engines, electricity, and the internet.
The convergence of software-as-a-service (SaaS) and artificial intelligence (AI) presents a significant opportunity for India, positioning the country as a frontrunner in the global AI landscape, according to a report.
“India’s booming SaaS industry, valued at a trillion dollars, is set to be completely reshaped by GenAI,” said Prasanna Krishnamoorthy, Managing Partner at , adding that Indian AI SaaS startups are poised to create the next wave of innovation.
The software landscape is undergoing a fundamental shift driven by Generative AI (GenAI), which is perceived as a general-purpose technology akin to steam engines, electricity, and the internet.
This is poised to redefine every aspect of how software is built and used, merging the traditional IT services industry with the SaaS model to offer a combined “software and services” approach for the next generation of solutions, according to a report launched by WestBridge Capital and Upekkha titled ‘AI SaaS: India Opportunity’.
The report highlighted that within the next decade, Artificial General Intelligence (AGI) will pave the way for widespread adoption of GenAI, seamlessly integrating it into people’s daily lives as ambient intelligence working in the background.
This ambient AI will transform enterprise processes, surpassing the efficiency gains of traditional software and the cloud, and blurring the lines between small- and medium-sized businesses, mid-market entities, and larger enterprises, thereby creating a truly unified business landscape, as per the report.
“Much like today’s operating systems (OS), GenAI will become ubiquitous, permeating every aspect of software development. Early AI, similar to a basic text-only OS, had limited functionality. GenAI unlocks vast potential for large-scale applications and previously unimaginable innovations,” Thiyagarajan Maruthavanan, Managing Partner at Upekkha noted.
He added that just as operating systems evolved to become seamless foundations for application development, Gen AI will follow suit.
Gen AI isn’t just about adding chat interfaces; it deeply understands workflows, enabling strategic automation and optimisation, leading to innovative user experiences and significant advancements, the report noted.
In navigating this transformative landscape, businesses must prioritise strategic foresight and adaptation to GenAI to stay at the forefront of technological innovation.
“Generative AI is swiftly transforming the UI/UX landscape for businesses. It marks a rapid advancement, with UI serving as a key factor for differentiation in enterprise applications," remarked Rishit Desai, Partner at WestBridge Capital.
"This technology offers significant opportunities to optimise workflows, streamline repetitive tasks, enhance customer experiences on a large scale, and revolutionise how we interact with enterprise applications, leading to an advanced user interface,” he added.
According to the report, true opportunities exist in overlooked white spaces, where startups can explore industry verticals and gain a strategic advantage. Leveraging open-source AI models allows developers to customise AI functionalities to specific needs, potentially reducing entry barriers and accelerating innovation.
The report emphasised that India’s significant opportunity lies not only in developing new GenAI tools at the application level but also in demonstrating how to deliver promised outcomes powered by these tools to the world.
As SaaS transitions to “software and services,” India is poised to take the lead.
Edited by Kanishk Singh