India's AI Race: Media & Entertainment At A Crossroads - Will India Lead or Lag Globally?

Information and Broadcasting Secretary Sanjay Jaju has issued a strong call for India to accelerate its adoption of Artificial Intelligence (AI), warning that a failure to do so could lead to the country losing its competitive edge in the global content economy. Speaking at the CII Big Picture Summit, he identified the media and entertainment sector as one poised for significant disruption due to AI's capabilities.

Sanjay Jaju emphasized that AI is a "seismic shift" that is rapidly changing how content is created and consumed. He pointed out the growing ability of AI to generate content "on the fly," such as creating songs and videos, making future outcomes difficult to predict. Jaju stressed that India "has no choice but to embrace the transition" to ensure its stories reach a global audience.

Before AI, India's media and entertainment sector held only a 2% share of the global industry. Gaurav Banerjee, CEO of Sony Pictures Networks India, highlighted that the global M&E industry is projected to reach $3.5 trillion by 2030. Banerjee sees an "extraordinary opportunity" for India to build a $100 billion industry with a strong global outlook, provided sustained investment is made.

Jaju outlined the government's responsibility to create a level playing field, address market failures through policy, and close gaps hindering industry growth. The formation of the Indian Institute of Creative Technologies was cited as an example of an industry-led initiative to bridge talent and technology deficits.

Gunjan Soni, Country Managing Director at YouTube India, observed that the creator economy is a key driver of this shift. A significant 83% of Indian Gen Z individuals now identify as content creators, indicating a strong pipeline of future digital talent.

Embracing AI is critical for India to maintain relevance and grow its presence in the international content market. Strategic investments in talent, specialized education, and regional production hubs are seen as vital for building international competitiveness.

Impact

• This development could significantly shape the future growth trajectory of India's media and entertainment companies, content creators, and technology providers.
• Increased AI adoption may lead to new business models, enhanced content quality, and greater global reach for Indian productions.
• Conversely, slow adoption could result in a loss of market share to more agile international players.
• There is a need for upskilling and reskilling the workforce to adapt to AI-driven changes in content creation and distribution.
• Impact Rating: 8

Difficult Terms Explained

• Artificial Intelligence (AI): Technology that enables computers to perform tasks that typically require human intelligence, such as learning, problem-solving, and decision-making.
• Seismic Shift: A major, fundamental change or disruption that has far-reaching consequences.
• Media and Entertainment Sector: Industries involved in creating, distributing, and broadcasting content, including film, television, music, publishing, and digital media.
• Creator Economy: An ecosystem where individuals can create and monetize their content, often on digital platforms, building careers as influencers, artists, or educators.
• Market Failures: Situations where the free market fails to allocate resources efficiently, often requiring government intervention through policy.
• Talent and Technology Deficits: Gaps in the availability of skilled professionals and advanced technological resources needed for industry growth.