In a recent dialogue highlighting the transformative role of artificial intelligence (AI) in procurement, Arvind Dixit, a former scientist with the Defence Research and Development Organisation and a former defence attache to Russia, urged for enhanced cooperation between India and Russia. Speaking at a special session in the scenic Altai Mountains, Dixit articulated that joint centres of excellence for developing AI-based applications could significantly optimise procurement processes, which he described as evolving into strategic, data-driven operations.
Dixit projected that India could realise cost savings exceeding INR 20,000 crore through AI-integrated procurement strategies by 2025. He noted that the use of AI can yield tangible benefits across various sectors, with organisations experiencing cost reductions of up to 18%, improved lead times by 30%, and substantial returns on investments within an 18-month timeframe. These improvements stem from the deployment of AI in crucial areas such as demand forecasting, risk management, and contract optimisation.
As he advocated for bilateral collaboration, Dixit emphasised points of synergy between the nations, particularly in co-developing AI-enhanced procurement and logistics systems. The incorporation of intelligent systems aims to streamline the procurement process, utilising comprehensive data analyses to identify cost-saving opportunities and automate routine tasks, thereby improving efficiency and making more informed decisions.
Historically, the technological alliance between India and Russia has played a pivotal role in defence and industry; however, recent geopolitical developments have influenced their trade dynamics. In September 2024, leaked communications revealed that Russia had been secretly acquiring sensitive goods from India, which included various dual-use technologies, to support its ongoing military activities in Ukraine. Moscow’s maneuvers, including a proposed $1 billion spending plan on electronics, demonstrated a concerted effort to establish a secure trade pipeline with India that could circumvent stringent Western sanctions. This clandestine activity has raised concerns about the potential impact on India’s relationships with Western powers, particularly the United States, as India seeks to further integrate itself into global supply chains.
In parallel, scientific cooperation continues to flourish, as seen in recent meetings between Russian and Indian scientists focused on a broad spectrum of emerging technologies including AI, biotechnology, and quantum tech. The 12th meeting of the Russian-Indian Working Group on Science and Technology, for example, was emblematic of both nations’ commitment to collaborative innovation. Participants exchanged insights on key areas of synergy, reflecting a mutual desire to push forward the inter-ministerial roadmap for scientific collaboration.
Furthermore, forums such as the India-Russia Business Forum held in New Delhi in March 2023 have facilitated numerous B2B interactions across varied sectors, not only enhancing trade ties but also illuminating the path towards advanced technology projects, including smart city initiatives and healthcare innovations. In a related vein, a focus on integrating AI into the healthcare sector has gained traction, aimed at enhancing service delivery and patient outcomes, thereby underscoring the multipurpose potential of AI across industries.
As both nations look towards the future, the formation of an AI Alliance Network involving BRICS countries, as announced by President Vladimir Putin in November, further signifies Russia’s commitment to collaborative technological advancement. This initiative aims to pool resources and expertise to foster development and regulation of AI, ensuring that these countries remain competitive in the global technology arena.
In this landscape of enhanced collaboration, the prospect of Indo-Russian partnerships in AI-enabled procurement not only opens new avenues for defence and logistics but also reinforces their historical ties, paving the way for a shared vision of innovation amidst a complex geopolitical backdrop.
Source: Noah Wire Services
Subscribe to Industry Updates
