The rapid advancement of artificial intelligence (AI) has led to growing concerns about digital colonialism, where nations become overly dependent on foreign AI systems.
Addressing this issue, Tata Group Chairman N Chandrasekaran underscored the need for India to develop sovereign AI capabilities to maintain control over its data, languages, and digital identity.
Speaking at the Mumbai Tech Week 2025, Chandrasekaran warned that without sovereign AI development, India risks losing control over how its cultures, languages, and activities are processed by AI systems that do not understand the country’s unique socio-cultural dynamics.
“If we don’t develop sovereign AI capabilities, we have a major risk of having all of our activities, languages, and cultures being processed by AI systems that don’t understand India. It will take it to a different place, a kind of a digital colonialism that we should avoid.”
He emphasized that India must take proactive steps to ensure AI systems align with the nation’s needs and values, rather than being shaped by external influences.
The Tata Group is actively working on AI-driven projects to strengthen India's technological ecosystem. The conglomerate is investing in:
AI Agents & Robotics: Development of advanced AI-driven automation solutions.
AI Infrastructure: Building a robust AI framework to support innovation.
Virtual Workers: Implementing AI-powered digital assistants for businesses.
AI Talent Development: Establishing an AI institute to nurture expertise in the field.
Chandrasekaran noted that India has a unique opportunity to create a massive AI industry on the scale of the Indian IT services sector. He pointed out that, beyond software services, AI has the potential to become a key economic driver for the country.
“In addition to building all this sovereign AI and the India AI stack, we have a unique opportunity to create another very powerful sector similar to the scale of the Indian IT services sector just on AI. That is the potential.”
To establish a self-reliant AI ecosystem, Chandrasekaran outlined four essential pillars:
Technological Sovereignty: Developing proprietary AI models and infrastructure.
Data Sovereignty: Ensuring Indian data is processed within the country.
Talent Sovereignty: Training and nurturing AI professionals in India.
Governance Sovereignty: Implementing policies to regulate and secure AI operations.
“We build the capabilities that are required, put in place the infrastructure that is required, and we develop the knowledge that is required so that we can be totally independent.”
Chandrasekaran outlined a multi-layered strategy to position India as a frontrunner in the AI race:
Establishing an India AI Stack to support large-scale AI deployment.
Developing indigenous computational resources and AI infrastructure.
Building AI models and developer toolkits tailored for Indian applications.
Enhancing machine learning capabilities within the country.
Driving AI-based solutions across industries such as healthcare, finance, and governance.
Promoting AI adoption in startups and enterprises.
Formulating AI ethics and regulatory frameworks to ensure responsible AI usage.
Enforcing data protection laws to safeguard national interests.
Addressing concerns regarding job displacement due to AI, Chandrasekaran reassured that AI would, in fact, generate new employment opportunities.
“Certain routine jobs will go. It is not that every job is going to be kept. Gen AI will assist a no-skilled man or a low-skilled person to perform at a different level of productivity. It will enhance the productivity very significantly.”
While AI may replace repetitive tasks, it will also enable workers to enhance their productivity and take on higher-value roles, ultimately creating a net-positive impact on employment in India.
As AI continues to reshape industries, Chandrasekaran’s call for sovereign AI development underscores a strategic imperative for India. By investing in technology, infrastructure, talent, and governance, India can ensure it remains at the forefront of AI innovation while safeguarding its digital independence.
With initiatives like the India AI Stack and Tata’s AI projects, the country is well-positioned to become a global AI powerhouse, avoiding the pitfalls of digital colonialism while driving economic growth and job creation.