Why do US AI Startups Dominate Funding Over Indian Startups?

US AI startups have raised millions of dollars of AI funding more than Indian startups.

AI funding is now thriving in the global tech market with the emergence of advanced technologies with unique innovation and creativity. There is an artificial intelligence race going on worldwide accelerating the rate of innovation in each country. AI startups are growing tremendously owing to the millions of dollars of AI funding. US AI startups and Indian startups are in constant competition to be one of the leading countries with artificial intelligence. The global artificial intelligence market size is expected to hit US$997.77 billion in 2028 at a CAGR of 40.2%. US AI startups are gaining popularity in the tech market owing to their constant urge to build something new with cutting-edge technologies. Meanwhile, being a developing country, Indian start-ups are growing at a dramatic level day by day to reach the level of the US AI startups. Let's explore the reason why US Artificial Intelligence startups are dominating the AI funding over Indian startups in recent times.

US AI startups over Indian startups: AI funding

The US government is determined to want America to maintain the scientific and technological edge to flourish in the 21st-century economy. US AI startups have recognized the key elements of artificial intelligence such as mapping technologies, handwriting recognition, financial trading, language translation, and many more for the benefit of social wellbeing in multiple different industries. The US government is known for promoting partnerships for further development of capabilities in artificial intelligence technologies. It supports thousands of US AI startups responsible for the development and the use of products and services. They tend to receive AI funding worth millions of dollars from the government to enhance the productivity of the country as well as gain revenue efficiently and effectively.

Artificial intelligence is playing a key role in India's vision 2025 to earn US$5 trillion in 2025. The Indian government has divided the sectors into three parts — consumer goods and retail, banking and finance, and agriculture. Indian start-ups should consider the structural composition as well as the technological maturity to focus on a niche market. There can be a lack of efficiency with a lack of skilled talent and the cost of cutting-edge technologies. Thus, there are multiple firms in India that need sufficient AI funding to adopt artificial intelligence models. Indian startups are one of the top ten artificial intelligence adopters with popular AI applications such as automation of business processes, chatbots, NLP, image recognition, and many more.

That being said, the main reason for the US Artificial Intelligence startups to dominate the AI funding over Indian startups is the sense of unfulfilled potential for adopting artificial intelligence technologies in India. Some professionals claim that the Indian society or ecosystem is not as forgiving as the US environment. There is also a lack of new innovative technological products and services because of duplicating the US Artificial Intelligence startups' goals. India needs to have its own global trend-setters and influencers for further development of the technological ecosystem.

The US AI startups are receiving more AI funding than the Indian startups because India is showing some indication of adopting artificial intelligence at the grassroots level while the US is already matured in this field, just like the status with cryptocurrencies. The underdeveloped economy is also an important factor why Indian startups are not receiving equal AI funding as the US Artificial Intelligence startups.

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