Artificial Intelligence (AI) has become a transformative force across various industries, and numerous companies are leading the charge in developing and applying AI technologies. If you believe that AI stocks in India will do better, you need to start analyzing the companies in this space. In this article, we discuss the best Artificial Intelligence stocks in India to get you started.
Understanding AI Stocks
Before we name the best AI stocks in India for you, we believe we all should be on the same page. So, we start by understanding:
- What is Artificial Intelligence?
- What are AI stocks?
Imagine you have a super helpful friend who can learn and improve over time. That’s kind of like Artificial Intelligence. AI is like training a super smart friend: You give it data (like showing pictures to your friend), and it learns to recognize patterns and perform tasks based on that data. To help you understand its usage – here is one example – The recommendation system on Netflix that suggests shows you might like is all done with AI technology.
Artificial Intelligence companies in India are businesses that create this kind of technology. They develop software and systems that can learn and act intelligently. Some AI companies may work on the product side, while others may be towards services.
Understanding the AI Sector in India
We will keep you waiting a bit longer before naming the AI stocks in India. Before that, let us see how big the industry is in India. As of 2022, as per estimates, the AI industry in India is valued at around $5.2 billion. The sector is expected to grow at an exceptional rate. By 2025, it would be an $8 billion industry, growing at a CAGR of 40%. By 2032, the industry will grow at 18.20% CAGR to $23.4 billion.
The Indian AI sector is still relatively young but demonstrates promising growth potential. India boasts a large pool of skilled engineers and scientists, making it an attractive destination for AI development. There’s a rising demand for AI solutions across various industries like healthcare, finance, agriculture, and retail.
Best Artificial Intelligence companies in India
Below are some of the top AI companies in India:
Tata Consultancy Services (TCS): While TCS is a major IT services company, it has been actively investing in and developing AI solutions for various industries. Their efforts include natural language processing, computer vision, and machine learning. Recently, their CEO said that the company is one of the world’s largest AI-ready workforces. Also, the company is currently working over 200 engagements in GenAI with its clients and foresees a promising pipeline of future work across all industries.
Infosys: Another major IT services company, Infosys, is making significant strides in AI. They offer AI-powered solutions in areas like automation, big data analytics, and customer experience. The company has launched an AI-first set of services, solutions, and platforms using generative AI technologies – Infosys Topaz.
HCL Technologies: HCL Tech offers a variety of AI solutions, including intelligent automation, cognitive computing, and machine learning. They cater to various industries like banking, insurance, and manufacturing.
Affle: This company is a leader in mobile advertising and uses AI to deliver targeted advertising campaigns and improve customer engagement.Affle: This company is a leader in mobile advertising and uses AI to deliver targeted advertising campaigns and improve customer engagement.
Bosch: While a global conglomerate, Bosch has a strong presence in India and offers AI solutions for various sectors, including manufacturing and smart mobility.
Disclaimer: Please note that the stocks mentioned above are provided solely for educational purposes. We do not endorse or recommend any of these stocks without thorough independent research
Why should you invest in AI companies in India?
Let us look at some of the reasons why you should consider investing in top AI stocks in India:
- Rapidly Growing Market: As mentioned earlier, the Indian AI market is projected to experience significant growth in the coming years. This presents an opportunity for investors to capitalize on the booming AI sector.
- Cost-Effectiveness: India offers a cost-competitive advantage compared to other AI development centers globally. It attracts companies looking to invest in AI research and development.
- Focus on Real-World Solutions: Indian AI companies are increasingly focusing on developing solutions for specific industry needs across sectors like healthcare, agriculture, finance, and retail. This diversification creates a broader investment opportunity.
- Diversification: Investing in artificial intelligence stocks in India helps you with diversification. AI technology is used across industries, allowing you to invest in AI stocks with exposure to multiple sectors. The diversification reduces your portfolio risk and provides stability to your investment portfolio.
Risks of Investing in AI stocks
We have discussed everything positive you must know about investing in AI stocks. However, you must understand the associated risks. Here are some of the risks of investing in AI companies in India:
- Rapid Evolution: The field of AI is constantly evolving. You may invest in a company today, a leader today, but it might struggle to keep pace with advancements made by competitors in a few years. Unexpected breakthroughs or changes in algorithms could render existing AI solutions obsolete.
- Hype vs. Reality: Today, most companies are claiming that they are doing path-breaking work around AI. The AI sector can be prone to hype and inflated expectations. Not all companies claiming to develop revolutionary AI solutions will deliver on their promises. You need to be cautious about overly optimistic forecasts.
- High Valuation: Many AI companies are still in the early stages of development and may not yet be profitable. Their stock prices might be based on future potential rather than current earnings, leading to potential overvaluation and vulnerability to market corrections.
- Difficulty in Evaluation: It can be challenging to assess the true value of an AI company because its core assets are often intangible, like intellectual property or vast datasets. It makes it difficult for investors to accurately gauge their investment potential.
How to get started with equity investment?
Picking the right stocks for long term for your portfolio is not an easy task. We do understand the pain points of investors. Therefore, we build an AI tool for Stock Market India you need to create your equity portfolio. The best thing about the tool is that you it uses AI to create and manage your portfolio.
You can follow the below steps to get started with equity investment using Jarvis Invest:
- Visit www.jarvisinvest.com
- Create your account in a few minutes.
- Get your risk profile evaluated.
- Choose from existing products depending on your needs – Jarvis Portfolio (To build and manage an AI-powered equity portfolio with an inbuilt 24X7 risk management process), Jarvis Protect (to help you book profits and cut losses from the stocks from your underperforming stock portfolio) or Jarvis One Stock (To book short-term profits with a smaller amount).
- Make the payment and get started.
Before you go,
Investing in AI companies in India offers the potential for high growth and exposure to a dynamic and innovative sector. However, it is crucial to carefully research individual companies, understand the risks involved, and align your investment strategy with your risk tolerance and long-term goals. If you cannot do everything on your own – we have a solution for you – Jarvis Invest. Explore it once to see how to use technology for Artificial Intelligence stock trading/investing in India.