New Delhi, Oct. 22 -- India's AI market is expected to see a shift in demand towards debt financing for data centres and computing infrastructure. At the same time, the sector faces several risks, including the rapid obsoleteness of graphics processing units (GPUs), uncertain revenue models and evolving governance regulations, according to a report by Union Bank of India.

The report says India's AI market is expected to witness strong growth, driven by its expanding internet and smartphone user base and rising adoption of generative AI by enterprises.

India currently has around 880-900 million internet users, with a target of reaching 1.2 billion by 2030, while its smartphone user base stands at approximately 700-750 million.

"India br...