AI’s Potential: Transforming India’s Future
Billions of Dollars of Opportunity
Artificial intelligence (AI) and AI agents present a staggering opportunity for India, potentially worth billions of dollars, far exceeding the current landscape of Software-as-a-Service (SaaS). This assertion comes from Girish Mathrubootham, co-founder of Freshworks, who highlighted the vast potential of AI in a recent speech.
The Market Landscape
Speaking at the annual SaaSBoomi event in Chennai on March 25, Mathrubootham noted that the total enterprise market is approximately $300 billion. With the rise of AI agents, the sum of software and salary time could lead to a $1 trillion opportunity. Currently, India holds a mere 2% share of the global SaaS market.
Growth Potential
“Even 2% of this is a massive growth and that represents a significant opportunity for those willing to seize it,” Mathrubootham emphasized. The implications of AI technology could reshape the SaaS landscape, providing numerous avenues for innovation and revenue.
Excitement and Fear
Mathrubootham expressed mixed feelings regarding AI’s impact: “AI is exciting and scary at the same time. It is exciting because we are disrupting other industries, yet scary because we are also disrupting our own.” He acknowledged the notion that the current functioning of the industry is outdated and stressed the need for businesses to evolve with technology.
Transition of Leadership
In a noteworthy transition, Mathrubootham stepped down as the CEO of Freshworks in May 2024. As the executive chairman, he highlighted his focus on spearheading the company’s AI strategy.
Rising Competition
During the event, Mathrubootham addressed the growing competition from new-age players. While competition is expected, he asserted that established companies have an inherent advantage due to their customer data. “AI needs data, and incumbents have access to that,” he stated.
Universal Access to Technology
He stressed that new generative AI technologies are widely available and not exclusive to any single startup. Therefore, market players must leverage their data intelligently, as this could greatly influence their success in deploying AI solutions.
Adapting to Change
Mathrubootham asserted that incumbents who adapt by developing agentic AI platforms will be better positioned to retain customers. “This strategy is central to Freshworks’ approach,” he added.
Innovations in AI at Freshworks
One of Freshworks’ latest innovations includes the AI agent named Freddy, designed for self-service automation to enhance customer experience. Additionally, the company has introduced Freddy Co-Pilot to assist human users.
The Key to Survival
“Companies that are able to adapt will survive. Companies that are not able to adapt will face disruption; that is the universal truth,” Mathrubootham mentioned, emphasizing the unpredictable nature of the tech landscape.
Partnerships and Collaborations
Companies today are increasingly partnering with startups to harness innovative technology. “This trend will continue, and incumbents must navigate this landscape correctly,” he noted.
Shifting Business Models
The advent of AI is poised to transform traditional business models, particularly shifting from user base pricing to consumption-based pricing. “Freshworks has embraced both pricing models for the past four years, with a notable shift towards consumption-based pricing expected to escalate,” he added.
The Future of Automation
As automation technologies evolve, Mathrubootham predicted that companies would derive more revenue from automation via tools like co-pilots or AI bots.
Conclusion
In conclusion, the future of AI in India holds immense potential to unlock new business opportunities, reshape industries, and create invaluable innovations. As companies navigate this landscape, the ability to adapt and leverage AI effectively will be pivotal for their success.
FAQs
- What is AI’s potential value for India according to Girish Mathrubootham?
AI could represent a multi-billion dollar opportunity, exceeding that of SaaS. - What market share does India currently have in the global SaaS market?
India currently holds a 2% share of the global SaaS market. - What is the significance of the transition that Mathrubootham is undergoing?
He transitioned from CEO to executive chairman, focusing on AI strategy for Freshworks. - What is the AI agent launched by Freshworks?
Freshworks launched the AI agent named Freddy for self-service automation. - How will business models change with AI technology?
There is a shift from user base pricing to consumption-based pricing as AI technologies advance.
