New Delhi, Oct. 22 -- India's artificial intelligence (AI) sector is expected to see rising demand for debt financing to fund data centres and computing infrastructure over the next three to five years, according to a report by Union Bank of India (UBI).

The report said the sector offers significant growth opportunities, supported by India's expanding internet and smartphone user base and increasing enterprise adoption of generative AI. However, it also faces risks from rapid hardware obsolescence of graphics processing units (GPUs), uncertain revenue models and evolving regulatory frameworks.

India has around 880-900 million internet users, with the number expected to reach 1.2 billion by 2030. Its smartphone user base is estimated at ...