Sood says India shifts from superficial AI trials as his mother uses ChatGPT
India’s AI scene has long been defined by pilot projects that never left the lab, a pattern that left investors and founders asking whether the market was ready at all. Yet the chatter in Bangalore’s co‑working spaces is changing. Start‑ups that once chased validation from Silicon Valley are now watching everyday users adopt the same tools they built for enterprise clients.
That shift is palpable in the way product teams measure success—not by the number of white‑paper citations but by the frequency with which a family member opens a chatbot on a phone. It also underscores a deeper tension: despite wages that remain among the world’s lowest, many Indian firms still lean on human labour instead of pouring capital into AI‑driven automation. The paradox of cheap work and rising consumer familiarity with generative models sets the stage for a candid observation from one of the ecosystem’s vocal critics.
Sood said that after years of superficial AI experimentation, India has begun to see a real shift. "My mother uses ChatGPT," he said, laughing at how fast consumer comfort has grown. Sood highlighted that labour costs in India are so low that employers prefer to hire workers rather than invest in advanced technology.
Building Global Tech from the West Smallest.ai's core technology is built for India's conversational chaos. For instance, he points out that many people say "Infy" instead of "Infosys". The company is betting on speech technology built for accents, mumbles and informal speech patterns.
Sood believes real Swadeshi tech comes from global excellence. "The real Swadeshi Tech is somebody who's building for the globe, keeping your own country in mind," he said. Amartya Jha, co-founder and CEO of CodeAnt, reached a similar conclusion but took a different approach.
He and his co-founder permanently moved to the US, got backing from Y Combinator and raised $2 million in seed funding. While engineering strength sits in India, sales strength sits in the US. "Our primary customer is the US, not India," he said.
Is the tide really turning, or is it another ripple? Sood’s anecdote about his mother chatting with ChatGPT suggests everyday Indians are becoming comfortable with generative tools, yet the broader pattern of startups still chasing San Francisco validation persists. Founders continue to board flights, secure foreign capital, and return, hoping external endorsement will unlock domestic credibility; the cycle, described as “no longer anecdotal,” still defines many go‑to‑market strategies.
Because labour costs remain low, many Indian employers still favour hiring people over investing in AI, a reality Sood highlighted without offering a clear path forward. If consumer familiarity grows, could that alone shift hiring incentives? Unclear whether the current enthusiasm will translate into sustained, home‑grown AI deployment or simply reinforce the existing dependency on Western approval.
The article leaves open the question of how quickly, or if, Indian firms will move from superficial trials to deeper integration without external validation. Only further evidence will reveal whether this perceived shift marks a lasting change or another brief episode.
Further Reading
- India's AI shift from pilots to performance; 47% of enterprises have multiple AI use cases live in production: EY-CII report - EY
- Microsoft invests US$17.5 billion in India to drive AI diffusion at population scale - Microsoft News
- Previewing India's AI Impact Summit with MeitY Secretary S. Krishnan - CSIS
- AI adoption improving public service delivery and governance: Report - The Economic Times
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Common Questions Answered
What evidence does Sood give to illustrate the shift from superficial AI trials in India?
He mentions his mother using ChatGPT, showing everyday consumer comfort with generative AI, and notes that start‑ups are now measuring success by user adoption rather than academic citations. This shift moves the focus from white‑paper citations to real‑world engagement.
How do low labour costs in India influence companies' decisions about investing in advanced AI technology, according to Sood?
Sood points out that because labour is inexpensive, many employers prefer hiring human workers over deploying costly advanced AI solutions, slowing broader enterprise AI adoption. The low cost of manpower reduces the immediate incentive to invest in sophisticated technology.
What role does Bangalore’s co‑working space chatter play in the evolving Indian AI landscape?
The article describes that conversations in Bangalore’s co‑working spaces reflect a growing awareness that everyday users are adopting tools like ChatGPT, signaling a cultural shift from lab‑only pilots to real‑world usage. These informal discussions are helping to reframe success metrics toward consumer engagement rather than academic output.
Despite increased consumer adoption of tools like ChatGPT, why do Indian start‑ups still seek validation from Silicon Valley, according to the article?
The piece notes that founders continue to travel abroad, secure foreign capital, and return hoping that external endorsement will provide domestic credibility, indicating that the “San Francisco validation” mindset remains entrenched. Even as consumer comfort with generative AI rises, many start‑ups still rely on foreign validation to unlock local market trust.