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In today’s newsletter: 

• Why Ashwini Vaishnaw is worried about AI
• AI race heats up among Indian SaaS firms
• Has edtech become tuition tech?

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It's not a bad thing to see the Prime Minister break into a garba or hear him singing Bollywood chartbusters. 

However, the potential for deepfake technology to create such viral content is terrifying, especially in the lead-up to elections.

India's technology minister Ashwini Vaishnaw is worried about deepfake content generated by artificial intelligence.

"All these things can actually create huge disturbances in the society, our social institutions, institutions like marriage... The platforms, society, regulators, government – all of us will have to work together and find a solution," he told us in an exclusive interview.

AI is a far more complex issue than privacy regulation, posing a significant threat to humanity, said Vaishnaw.

• He stressed that the government is engaged in ongoing discussions with internet platforms to alleviate AI-related risks

Watch the full interview here

In a whirlwind tour of the South, Vaishnaw today inaugurated a facility of semiconductor major AMD in Bengaluru that will house 3,000 engineers designing semiconductor chips.

• During the inauguration, Vaishnaw revealed that at least three players have made chipmaking investment proposals worth about $8-10 billion

• In a significant policy shift, he also stated that India's electronics manufacturing sector is poised to transition from import dependence to an export-driven model

He also emphasised the necessity for Bengaluru to adopt a rail-based transportation system to alleviate traffic congestion in the tech hub.

P.S: Catch the movers and shakers of the AI industry discuss the most pressing issues in the sector at CNBC-TV18 & Moneycontrol’s Global AI Conclave on December 16th in Bengaluru.

The software-as-a-service (SaaS) industry in India is witnessing a surge in AI adoption, with many firms investing heavily in training their workforce to stay ahead of the curve.

Since OpenAI released ChatGPT in November of last year, SaaS firms around the globe have recognised the immense potential of AI tools and are expanding their offerings accordingly. 

• A crucial step towards becoming an AI-first SaaS firm is to employ well-trained engineers as well as train existing workforce, and that's precisely what SaaS firms are focusing on these days

Several firms, including major players like Zoho, are actively conducting training sessions, establishing dedicated AI councils, and setting up data centers to keep their workforce up to date with the latest AI advancements. 

• Additionally, some firms are organising internal hackathons to encourage the development of innovative AI use cases

With each new technological advancement, new job opportunities emerge, and generative AI innovations are no exception.

• As SaaS companies increasingly incorporate generative AI tools like ChatGPT into their products, the demand for specific skills and roles is evolving

While the demand for full-stack engineers, data scientists, and machine learning experts remains robust, the focus is shifting towards AI-specific skill sets. 

• Companies are seeking individuals with expertise in prompt engineering, a crucial aspect of effectively utilising generative AI models 

• Additionally, proficiency in machine learning is essential for understanding the underlying algorithms and optimising model performance

Dig deeper

2020 marked a pivotal shift in the education landscape as the pandemic forced a rapid transition to online learning. In the wake of this digital surge, a wave of venture-backed edtech companies emerged, promising to revolutionise Indian education.

• Prominent Indian edtech companies like Byju's, Unacademy, PhysicsWallah, and Vedantu, all valued over a billion dollars, batted for the online model

Fast forward to 2023, and all of these companies, along with a few others, have set up brick-and-mortar centres across the country.

Latest to join the fray is Peak XV-backed Cuemath, which has forayed into the offline realm with its first center in Gurugram.

• The company has effectively come full circle, as it initially started with an offline model where teachers took classes out of their homes

Cuemath, which transitioned to an online model at the outbreak of the pandemic, now plans to establish about five offline centers in India in 2024.

“The long-term strategy for India definitely has to include offline as a major component,” said Manan Khurma, the founder and CEO of Cuemath.

The company, which has seen its India business slow down post-pandemic, is attempting to navigate through the challenges with a renewed focus on offline centres.

• Khurma believes the company has its work cut out for it

He said Cuemath, in 2024, will prioritise strengthening its local team, enhancing customer experience instead of pursuing rapid expansion, and achieving positive unit economics.

Go deeper

• A new report has found that AI is being used in schools to save time on administrative tasks, but teachers are concerned about the potential for AI to produce false information.
  
  
• Chinese AI firm SenseTime denied a short-seller report's allegations of revenue fabrication and said it would review the claims.

ReelShort, an app owned by Beijing-based COL Group, is proof that cringe content sells like hot cakes. 

The app has been downloaded nearly 2 million times in the past month and briefly surpassed TikTok to become the most popular entertainment app in Apple’s US App Store.

• ReelShort is a micro-series app that offers viewers bite-sized dramas, with episodes as short as two minutes

If you're looking for something cringe to watch, you should definitely check out this app! Find out more

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