CCI report confirms that most Indian AI startups now rely on open source technologies to build applications, leveraging global contributions from Google, Microsoft, Meta, Amazon, and OpenAI to gain a competitive edge.
A recent survey by the Competition Commission of India (CCI) reveals that 67% of Indian AI startups are primarily focused on developing AI-based applications, with a strong reliance on open source platforms. Approximately 76% of these startups utilise open-source technologies due to their accessibility and cost advantages, underscoring open source as a key driver of India’s AI ecosystem.
The survey details the core AI technologies deployed, with 88% of startups utilising machine learning (ML), 78% employing natural language processing (NLP), 66% working with generative AI models such as large language models (LLMs), and 27% focusing on computer vision (CV). Global players, including Google, Microsoft, Meta, Amazon, and OpenAI, provide major contributions in open-source algorithms and platforms, enabling startups to scale efficiently.
AI adoption is spreading rapidly across sectors, including banking, financial services, healthcare, retail, e-commerce, logistics, and marketing. Businesses leverage AI for dynamic pricing, personalised recommendations, demand forecasting, and automated decision-making. Nearly 90% use AI to monitor customer behaviour, 69% for demand forecasting, 27% to track supply chain efficiency, and 24% for pricing trends.
Shivanghi Sukumar, Partner at Axiom 5 Law Chambers, commented, “The CCI’s study adopts a thoughtful and forward-looking approach that aligns with the objectives of the IndiaAI Mission. The study highlights areas that could shape competition dynamics in the future, including emerging risks of algorithmic collusion, opacity in AI decision-making, and unequal access to data and compute. By flagging these issues early, the CCI acknowledges that AI could gradually reshape market structures.”
The CCI emphasises promoting a fair and competitive AI ecosystem while safeguarding consumer interests. With the adoption of open source, costs are reduced and accessibility increased, positioning Indian AI startups to accelerate innovation, improve productivity, and gain a significant competitive advantage in an AI-driven market.
