Tech, threats, territories: Navigating industry growth in new world order

As I step into my role as president of nasscom, I view the next five years as a critical period, shaped by the intersection of three forces: Technology, threats, and territories.

 

A few months ago, Nvidia introduced Earth-2, an AI-powered “digital twin” designed to tackle the challenge of predicting extreme weather. Powered by FourCastNet, it uses terabytes of Earth system data to predict weather two weeks ahead, thousands of times faster, and more accurately than current methods. Innovations like this have the potential to reshape science, accelerating breakthroughs that could otherwise take decades. For example, scientists at McMaster University and MIT recently used artificial intelligence (AI) to identify a new antibiotic to combat one of the WHO’s most dangerous antibiotic-resistant bacteria, while Google DeepMind is leveraging AI to control plasma in nuclear fusion, edging us closer to clean energy. 

Thanks to Moore’s Law, what began in 1965 with just 64 transistors on a chip has exploded into over 50 billion transistors on a fingernail-sized chip today. This leap in computing power continues to propel innovation forward, leaving us to wonder what the next fifty years will hold. Yet, as technology opens new doors, it also brings challenges that require careful management. The future of business and economic growth depends on our ability to harness these opportunities while mitigating the risks.  

The age of disruptive technologies 

We are in a time where technology is radically transforming industries. AI, cloud computing, and quantum technologies are reshaping how businesses operate and deliver value. At the centre of this transformation is India, rapidly emerging as a global leader in software, engineering, and innovation. For instance, about 75 per cent of Nvidia H100 GPUs at Yotta Data Services are used by companies abroad, while Fractal has developed Vaidya.ai, India’s first multimodal medical LLM, capable of diagnosing and advising in multiple languages. 

With a $250 billion technology industry, India is driving digital transformation for over 80 per cent of the global Fortune 500. By 2030, its share in the global engineering research and development sourcing market is expected to rise from 17 per cent to 22 per cent, solidifying its position as a tech hub. India’s Global Capability Centers (GCCs) have grown by 32 per cent in five years, focusing on AI, machine learning, and cloud innovation. Indian developers are also among the leading contributors on GitHub, underscoring the nation’s vibrant tech ecosystem. 

As this “Techade” unfolds, adaptability is key. We need to invest in training to build a future-ready workforce. Moreover, success should be redefined—not only by profit but by societal and environmental impact—ensuring that this technological revolution benefits all, not just a few. 

Threats shaping the future 

Technology, though revolutionary, does not exist in a vacuum. The threats facing businesses today come from both technological advancements and the external global environment.  

Artificial general intelligence (AGI) is the next big leap in AI, with the potential to automate industries and solve global challenges. However, it also poses a significant threat if not managed carefully. Without appropriate safeguards, AGI could lead to disruptions in labour markets, create new forms of cybercrime, and even challenge global security. Businesses and governments must work together to ensure that this technology is used responsibly. This includes establishing regulations, ethical guidelines, and international cooperation to prevent the misuse of AGI. 

Second, the climate crisis is one of the most urgent threats facing humanity, and the technology sector is deeply intertwined with its effects. As industries embrace digitalisation and shift to data centers and cloud infrastructure, energy demands in the tech sector are surging. Nvidia’s H100 AI GPUs, for example, are revolutionising the tech world but come with significant energy costs. According to Stocklytics.com, these GPUs are projected to consume a staggering 13,797 GWh in 2024, surpassing the annual energy consumption of countries like Georgia and Costa Rica. This highlights the growing environmental impact of AI advancements. 

 

While at the same time, AI offers potential solutions, such as optimising energy use, improving supply chains, and predicting environmental disasters, the industry must find a balance between driving AI innovation and managing its environmental footprint. 

Geopolitical instability and the fragmentation of territories 

The political landscape is increasingly fragmented, with growing tensions between major powers and the rise of economic nationalism. Trade wars, regulatory barriers, and supply chain disruptions have become common challenges for businesses operating in global markets. Companies that once thrived in a world of free trade and open borders are now facing new forms of protectionism and regional conflicts.  

Technology companies, in particular, are caught in the middle of this geopolitical shift. The rise of cyber warfare and state-sponsored hacking has elevated the importance of cybersecurity. Companies must not only protect themselves from traditional risks like data breaches but also from nation-state actors that seek to exploit vulnerabilities in their systems for political or economic gain. Businesses must diversify their supply chains, strengthen cybersecurity protocols, and invest in local markets to hedge against global uncertainties. At the same time, companies must remain agile, ready to adapt to rapidly changing regulatory environments and political shifts. 

The interplay of technology, threats, and territories 

The convergence of these technological advancements and external threats has created a complex web of risks and opportunities. For businesses, the challenge lies in navigating this intricate landscape while continuing to innovate and grow.  Those that succeed will be the ones that can effectively balance these forces, leveraging technology to solve problems while mitigating the risks that come with it. The role of leadership in this new era cannot be overstated. Business leaders must have a forward-looking mindset, anticipating the challenges and opportunities that lie ahead. 

Governments, businesses, and international organisations must work together to create a regulatory and economic environment that fosters innovation while managing the risks posed by technology and geopolitical threats. 

At the national level, governments should focus on creating policies that encourage technological innovation while addressing the ethical and security concerns associated with advanced technologies like AI. This includes investing in R&D, establishing clear guidelines for AI governance, and fostering a collaborative relationship between the public and private sectors. 

On the global stage, international cooperation is crucial. The challenges we face require a coordinated response. Businesses must engage in multilateral dialogues and contribute to global initiatives aimed at addressing these challenges.  The interplay between technology, threats, and territories is reshaping the global landscape, and companies must be prepared to navigate this complex environment.

 

The writer is the president designate of nasscom