Indian businesses stuck in 'mindset problem' with AI adoption as world moves ahead: Sumit Mehra of Tredence

India's corporate sector is at a critical juncture in its relationship with artificial intelligence. While global enterprises race to implement cutting-edge AI solutions, many Indian businesses remain stuck in a "mindset problem", Sumit Mehra, co-founder and CTO of San Jose-based AI solutions firm Tredence, said.

Talking on the sidelines of AI Day 2025 in Bengaluru, Mehra said, "Enterprises want cutting-edge AI, and there’s money as well but explaining value over cost gets difficult.” This fundamental disconnect of viewing automation as a cost center rather than a strategic investment might explain why India lags behind Western markets in AI adoption despite having world-class technical talent, he added.

The numbers tell a sobering story. In 2023, the United States saw AI investments reach $67.2 billion, nearly 8.7 times more than China, the next highest investor. While private AI investment in China and the European Union, including the United Kingdom, declined by 44.2% and 14.1%, respectively, since 2022, the United States experienced a notable increase of 22.1% in the same time frame. For India, the number is much lower with the government allocating approximately $1.25 billion through India AI Mission over five years.

Yet beneath this cautious exterior, quiet revolutions are underway. Global companies with Indian operations are becoming powerful change agents, pushing local partners toward modernisation. “We are going for GCCs (Global Compatibility Centres) in India for business,” said Mehra.

But the direction is clear.

"The question isn't whether AI is coming to Indian businesses, but how quickly they'll adapt," he added.

With global pressures mounting and a new generation of tech-native leaders emerging, India's great AI acceleration may be closer than it appears. Talking about future, Mehra predicts India will see "intelligent robots" sooner than expected — not just in factories but in roles requiring contextual interaction (e.g., customer service). 

For traditional businesses clinging to outdated cost paradigms, the message is clear -- the future won't wait for those who hesitate.

When asked about widespread fears of AI-driven job losses, Mehra said the doomsday scenario is overstated. “The future isn't about humans competing with AI - it's about learning to collaborate with it,” he added.

While routine, low-complexity roles may be automated, positions requiring sophisticated decision-making and emotional intelligence will continue to need human involvement, he explained, adding "This shift is ultimately positive."

Mehra argued it pushes humans to upskill and focus on what makes us uniquely human - creativity, judgment and interpersonal skills.

Tredence plans to hire 1,700 people in 2025, with 30% of new hires focused on Gen AI and Agentic AI. The company also plans to train over 1,000 employees on Agentic AI in 2025 further scaling these initiatives in 2026. By investing in workforce development, Tredence aims to build a robust talent pipeline that will drive AI-first business strategies across industries.