Robots everywhere, bugs nowhere

What is the idea behind an AI Academy? Is IBS following software biggies that have turned to academic start-ups for dealing with talent crunch?

To some extent we are addressing scarcity of talent in AI (Artificial Intelligence) market. The IT industry is reaching a saturation point and the type of software available today will be redundant tomorrow. AI is going to rule everywhere and will be the next big thing after nano-technology. But there is another greater motivation behind this venture. Initially, I had planned this institute for Austria but what brought me back to India was the fact that India is still just another software factory for the world, while real technology innovation is coming from the West. This institute will have its thrust on fundamental research with open-book curriculum in the area of AI that can be applied and leveraged across the world.

Would it also double up as IBS' R&D pipeline?

Not completely. The institute will be an independent unit that can take projects from corporates and can also sell rights to them. The IP however will rest with the institute. We are planning to assign applied research in areas like bio-informatics, human computer interaction, human robotic interaction, data analytics, knowledge management and super computers for IBS.

AI is gaining traction, but how big will its spectrum be in the near future? How substantial is the same in terms of commercial viability?

As of today AI overlaps IT and hence its scope is not well defined. But in five years, the scene will change. By 2010, it will reach a market size of $100 billion globally, of which 40 per cent can be cornered by India. Robots can be applied anywhere where human effort can be eased by technology. In software, usability can be optimised via AI; in factories manufacturing can be automated; warehouses can be robotized; in e-commerce robotic interface can improve efficiency; in retail CRM can be taken to a new level; in defence robots can save human lives and detect mines and trace combatants. In short robots and AI can span across a multitude of applications. As far as the business feasibility goes, IBS has already started deployments in areas like Retail EMS, Tour EMS, ERP/CRM, Intelligent Text Mining, Fraud Detection System, Agent Oriented Supply Chain Management, Intelligent Tourism Demand Forecasting System, Intelligent Workspace Environment blueprint and the Intelligent Customer Profiling and Advertising (ICPA) engine.

Would this inject more R&D action in the industry?

Today, for AI industry, the share of R&D in balance sheet stands at five to seven per cent, but it is increasingly moving towards the range of 15 to 20 per cent. Companies are realising the market advantages of research thrust.

Will this Institute branch out to other cities in future? When can we expect it go on stream?

Yes, after Pune we plan to scale up via satellite institutes and franchisees. The former may extend up to six across Northern and Western India and Ahmedabad may be our first satellite institute. For the latter we will adopt a model similar to NIIT and aim to have around 75 franchisees for diploma level courses over the next two years. The operations will start in another one and a half years.

What kind of investments would this venture entail?

Investments will range between Rs 100 to 150 crore that includes Rs 70 to 80 crore for land. It will be majorly funded by debt and partly by small private equity players.

Are you working on tie-ups for the Academy?

Yes, the alliances that we are looking for would be in four categories - franchisee arrangements, research-based organisations, Universities for certifications and lastly, an income-oriented avenue wherein companies may source in-house R&D work through our resources.

Would the Academy pursue any international certification?

We are undergoing discussions with Universities for certification. Talks with one national University didn't fructify and now we are talking to an international University besides a national one.

Can you share more on the scope of this academy?

IBS Education Pvt Ltd (IBSE) is a subsidiary of Intelligent Business Systems Pvt Ltd that will provide long-term graduate and postgraduate level degrees: MSc, MPhil and PhD in Computational Neuroscience, Intelligent Systems and Computational Intelligence besides short-term, customised courses for corporates (IT companies as well as IT departments of user companies). Our focus will be on "blue sky" (high-risk, high-return) research, as well as applied research for the conversion of scientific developments into commercially viable software solutions for the enterprise. Though a lot of research has taken place in the field of AI, the strengths have not yet been commercially realised, nor have they been fully implemented for mass-market benefit. Our vision is to take AI beyond the research laboratories.