Reliance Industries, the largest company in India by market capitalization, is making a significant move towards embracing Artificial Intelligence (AI) technology. During the company’s 47th annual general meeting, chairman Mukesh Ambani and other executives emphasized the importance of AI by mentioning it nearly three-dozen times within a two-hour timeframe. They outlined plans to integrate AI technology across Reliance’s various businesses spanning telecommunications, retail, and energy sectors.
One of the key highlights of Reliance’s AI strategy is the establishment of large-scale, AI-ready data centers in Jamnagar, Gujarat. These data centers are set to be powered by the company’s green energy resources. Mukesh Ambani expressed that these facilities would lead to lower AI inferencing costs in India, potentially making AI applications more accessible and affordable. However, the specifics regarding the feasibility of these plans and the timeline for their implementation were not fully disclosed during the meeting.
Reliance’s telecom arm, Jio, is actively working on developing a comprehensive AI suite named “Jio Brain” to drive AI adoption across its operations and other affiliated companies within the Reliance group. Additionally, the company is collaborating with Jio Institute to design an AI program aimed at nurturing AI talent in India. As part of its AI initiatives, Reliance plans to offer Jio users up to 100 GB of free cloud storage through its Jio AI-Cloud service, scheduled to launch around Diwali in October.
During the presentation, Reliance showcased JioPhonecall AI, a call recording and transcription service, as well as introduced Jio TvOS, an operating system with an AI voice assistant for its set-top boxes. While India has been perceived to lag behind in the global AI race, companies like Reliance and Tata Group, along with startups, have been actively working towards developing AI applications and infrastructure in the country. Despite the promising developments in AI technology, Reliance did not provide any updates on the anticipated IPOs of Jio and Reliance Retail, both leading subsidiaries in their respective sectors.
Mukesh Ambani stated that Reliance expects Jio and Reliance Retail to double their revenue and EBITDA in the next three to four years. Analysts at Bank of America are eagerly awaiting updates on the potential IPOs of Jio and Reliance Retail, as promised by the RIL chairman five years ago. Speculation has surfaced that Reliance could list Jio next year at a valuation exceeding $110 billion, considering its substantial investments from prominent entities like Meta, Google, Mubadala, ADIA, and KKR. Reliance Retail, which also raised significant funds in 2020, is estimated to have a valuation of $100 billion.
Reliance Industries is actively embracing AI technology and making significant strides in integrating AI across its businesses in India. The company’s focus on developing AI solutions, establishing AI-ready data centers, and nurturing AI talent reflects its commitment to leveraging technology for future growth and innovation in the country. While the specifics of its AI initiatives are still in progress, Reliance’s ambitious plans signal a transformative shift towards AI-driven solutions in various sectors of the Indian economy.