India and Russia are poised to embark on a new chapter in their longstanding partnership by focusing on the transformative potential of Artificial Intelligence (AI) in procurement. Arvind Dixit, a former scientist at the Defence Research and Development Organisation (DRDO) and a former defence attache to Russia, recently shared insights at a special session titled “AI in Procurement: Transforming India’s Strategic Capabilities.” This event, attended by policymakers, industry leaders, and technology experts, exemplifies the growing recognition of AI as a crucial enabler in strategic operations.
Dixit highlighted that AI’s integration into procurement processes could lead to substantial cost savings for India—estimated at over ₹20,000 crore by 2025. He underscored that AI is revolutionising procurement by transforming it into a strategic, data-driven function. This shift enables better demand forecasting, risk management, and contract optimisation, resulting in real-world benefits like cost reductions of up to 18% and lead time improvements of 30%. He cited the example of Hindustan Aeronautics Ltd., which, by employing AI in procurement, achieved approximately $3 million in annual savings.
The potential for bilateral cooperation embodies the spirit of the India-Russia Science and Technology Cooperation Roadmap, signed in December 2021, which emphasises joint projects in several domains, including AI, biotechnology, and clean energy. This roadmap seeks to enhance technological advancements between the two nations. Moreover, discussions about jointly developing IT products and AI solutions for third-country markets have been taking place since early 2020, indicating a comprehensive approach to mutually beneficial advancements.
Dixit proposed the establishment of joint centres of excellence focused on developing AI-based applications specific to procurement and logistics. This perspective aligns well with Russia’s broader ambitions in technological collaboration, particularly its formation of the AI Alliance Network in December 2024. This initiative, which brings together BRICS countries and others, aims to bolster AI capabilities amid ongoing Western sanctions and enhance cooperative research and development.
Moreover, Russian firms are increasingly exploring partnerships with Indian Global Capability Centers (GCCs) to leverage India’s expertise in emerging technologies. This collaboration is not merely limited to AI but extends to areas such as data analytics and cloud computing, which are vital for digital transformation in a globalising economy.
The strategic and industrial partnership between India and Russia is particularly crucial at this juncture, with both nations looking to enhance their technological prowess. As Dixit noted, “Procurement is the next frontier,” where both countries can leverage their history of cooperation to address contemporary challenges and opportunities in the AI era.
The real potential lies in harnessing the combined strengths of both nations to create an intelligent, secure, and adaptive procurement ecosystem that sets industry standards and positions them as leaders in AI-driven innovation. With the right investment in infrastructure and expertise, the future for Indo-Russian collaboration in AI could not be brighter.
Reference Map
- Developments in AI collaboration between India and Russia.
- Overview of the AI Alliance Network and its implications.
- Context of existing initiatives and previous collaborations in technology.
- Ongoing efforts in the digital landscape, including IT and AI products.
- Historical context of Indo-Russian scientific and technological cooperation.
Source: Noah Wire Services
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