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IMF Says Indian Firms’ AI Use Is Above Global Average, But Flags Skill Gaps As Challenge

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IMF Says Indian Firms’ AI Use Is Above Global Average, But Flags Skill Gaps As Challenge


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IMF noted that ensuring AI enhances productivity without widening disparities requires further investment in India’s strong digital infrastructure.

The findings were highlighted in an IMF Country Focus report published on January 28.

The findings were highlighted in an IMF Country Focus report published on January 28.

Nearly 60 percent of Indian companies already use some form of artificial intelligence (AI), well above global averages. However, skill gaps and integration challenges continue to be a major hurdle, the International Monetary Fund (IMF) said.

The findings were highlighted in an IMF Country Focus report published on January 28.

“Nearly 60 percent of Indian firms already use some form of AI—well above global averages. AI can make businesses more efficient, speed up technology diffusion, and strengthen innovation. But adoption remains uneven: employers cite skill shortages, inadequate tools, and integration challenges,” the report stated.

The IMF noted that ensuring AI enhances productivity without widening disparities requires further investment in India’s strong digital infrastructure, training workers, and protecting those who may lose jobs.

ALSO READ: IMF Upgrades India’s Growth Forecast To 7.3% For 2025 Despite Global Trade And Tariff Tensions

Simulations by IMF staff suggest that AI-driven productivity gains could raise total factor productivity in emerging Asia, including India, by roughly 0.3 to 3 percentage points over a decade, depending on sectoral exposure and preparedness.

The IMF also noted that India has already established key foundations for productivity-boosting reforms and can further leverage its world-class digital public infrastructure.

“Unlocking the next wave of growth requires a coordinated agenda: easing regulatory burdens so firms can grow, boosting innovation and university-industry collaboration to promote innovation, strengthening business dynamism, and enabling labor to move to higher-productivity sectors,” it added.

The report also highlighted structural challenges in manufacturing. Nearly three-quarters of Indian factories employ fewer than five paid workers, with the smallest enterprises producing less than 20 percent of the output per worker of large firms. Complex compliance requirements, rigid labour regulations, and restrictive product market rules often keep these businesses small, limiting overall productivity growth.

With the right reforms, India could convert its structural strengths into sustained productivity gains, supporting its ambitions to become an advanced economy, the IMF said.

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Finance ministers and top bankers raise serious concerns about Mythos AI model

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Finance ministers and top bankers raise serious concerns about Mythos AI model



Experts say Mythos potentially has an unprecedented ability to identify and exploit cybersecurity weaknesses.



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Anthropic’s new AI model exposes fresh risks, flaws for cybersecurity, IT services – The Times of India

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Anthropic’s new AI model exposes fresh risks, flaws for cybersecurity, IT services – The Times of India


New Delhi: A powerful new AI model is forcing govts, banks, and technology firms to rethink the rules of cybersecurity – and in India, the stakes may be even higher.Claude Mythos, developed by Anthropic, has demonstrated the ability to autonomously detect and exploit software vulnerabilities, including flaws that have persisted for decades. Early tests revealed that the model could identify long-standing weaknesses and simulate complex, multi-step cyberattacks, prompting the company to restrict its wider release. Anthropic CEO Dario Amodei highlighted the shift, noting that AI systems are now capable of finding vulnerabilities “that humans have missed”, a signal of how quickly the cybersecurity landscape is changing.US Treasury Secretary Scott Bessent reportedly convened a meeting with top bank executives – including leaders from JPMorgan Chase, Goldman Sachs, Citigroup, BoA, and Morgan Stanley – to assess the risks posed by such advanced AI systems.That concern is not theoretical. According to Jaydeep Singh, GM for India at Kaspersky, the emergence of such systems represents a turning point not just for security professionals, but for everyday users. “We have been closely monitoring how AI is reshaping the threat landscape, and Claude Mythos represents a moment that every user, not just the cybersecurity industry, needs to understand,” Singh said.The dual-use nature of AI is at the heart of the concern. The same capability that strengthens defences can just as easily be weaponised. “The same capability that finds a 27-year-old vulnerability in hardened infrastructure is the capability that, in the wrong hands, turns every unpatched system into an open door,” Singh added.Cybersecurity firm Check Point Software Technologies echoed the warning. Sundar Balasubramanian, MD, India and South Asia, for Check Point, says, AI is “dramatically lowering the barrier to entry for cyber attackers,” enabling even less-skilled actors to identify and exploit vulnerabilities. He added that defensive tools can be repurposed offensively, compressing the traditional gap between attackers and defenders. Jayant Saran, partner, Deloitte India, described this as a “changed reality,” where organisations must prepare for risks that were previously invisible. He called AI a “double-edged sword…that cannot be reversed,” highlighting an accelerating race between those securing systems and those attempting to break them.In India, the risks are amplified by scale. From UPI to banking and govt platforms, millions depend on digital infrastructure – much of it built on legacy systems. These systems are often slower to patch, harder to monitor, and lack continuous threat intelligence, creating what Saran called an “asymmetric risk exposure.” Singh pointed out that this gap is especially critical in India, where legacy infrastructure serves hundreds of millions.Beyond cybersecurity, ripple effects could reach financial markets. Analysts say models like Mythos could automate parts of software development, testing, and security – core functions of IT services industry. While disruption may be gradual, labour-intensive outsourcing models could face pressure, while firms embracing AI may benefit.



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Could a digital twin make you into a ‘superworker’?

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Could a digital twin make you into a ‘superworker’?



Firms say digital twins make staff more productive, but are they a potential legal minefield?



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