Infosys chairman: AI will drive financial inclusion for billions

India’s digital transformation and financial inclusion efforts are reaching a critical inflection point as artificial intelligence begins powering key infrastructure and services for its massive population.

The big picture: India’s ambitious plan to expand digital public infrastructure (DPI) to over 50 countries by 2029 represents a major push to replicate its successful domestic digital transformation model globally.

• Companies built on India’s DPI are projected to reach a combined market capitalization exceeding $100 billion
• The infrastructure includes foundational systems like Aadhaar (national ID), UPI (payments), DigiLocker (document storage), and account aggregator frameworks developed over 15 years
• These systems were designed specifically for population-scale implementation, small-value transactions, and cost-effective engineering

AI integration and language accessibility: Artificial intelligence, particularly through language models, is becoming a crucial enabler for extending financial services to India’s linguistically diverse population.

• The National Payments Corporation of India (NPCI) is implementing AI-powered voice commands for payments in Hindi and English
• Language models help overcome literacy barriers by enabling users to interact with financial services in their preferred languages
• This AI-driven approach has the potential to bring banking services to billions of previously underserved Indians

Strategic implementation principles: India’s digital infrastructure development has followed specific guidelines to ensure widespread adoption and effectiveness.

• Systems are designed to handle massive scale from the outset
• Infrastructure supports micro-transactions crucial for financial inclusion
• Public-private partnership model allows innovation while maintaining core public infrastructure
• Focus on frugal engineering keeps costs manageable while ensuring reliability

Leadership perspective: Infosys Non-Executive Chairman Nandan Nilekani, a key architect of India’s digital transformation, sees the country becoming a global leader in practical AI applications.

• India’s massive population and diverse use cases provide unique opportunities for AI development
• The existing digital infrastructure provides a strong foundation for AI integration
• Success in financial inclusion through technology can serve as a model for other developing nations

Future implications: The convergence of AI with India’s established digital infrastructure could create a transformative model for developing nations seeking to achieve rapid financial inclusion while potentially challenging traditional approaches to digital development in more advanced economies.