The great AI of Reliance races for a positive step, will help Indian IT companies: Sandip Agarwal

The Push in Artificial Intelligence (AI) from Reliance Industries through its new arm, Reliance Intelligence, could be a game change for India, according to Sandip Agarwal, fund manager at Sowilo Investment Managers.

Speaking with et now, Agarwal said that the strategy of reliance hardware, software and products combines in a way that distinguishes it. “On the hardware side they invest heavily in data centers and GPUs in Jamnagar. They have tied Meta to the software side that the Lama Large Language Model (LLM) has developed. Reliance also hired top AI talent of worldwide players,” he explained.

Agarwal says that Reliance’s access to artificial intelligence is an excellent strategy. It is a very positive approach to organize things. Although all hardware and software cannot be developed in a short timetable, the adjustments they make and their efforts to use the JIO platform for Outreach are really remarkable. Sowelo has a very optimistic view of this.

Agarwal noted that Reliance’s earlier acquisition of Haptik would also play a role, because it builds on AI -based solutions such as chatbots. This, he said, could eventually be scaled up and millions of retail users could be delivered via the JIO platform. “This is a very strong strategy. You have no choice to launch, because AI platforms such as OpenAI and perplexity are already disrupting the market,” he added.

Reliance’s AI focus can indirectly benefit Indian IT companies

Agarwal was clear about whether Reliance would move in IT services or Saas that this was unlikely. Instead, he said that the AI ​​focus of Reliance could indirectly benefit the Indian IT companies. “The tweaking of LLMs, building APIs and running AI solutions for Indian users will need local expertise. That means that domestic income for IT companies can grow, something that we have not seen for years. It is a story of 5-10 years, but very positive,” he said.

Reliance Retail has meanwhile established an ambitious annual growth oizer of 20%. Agarwal said that Retail could recommend higher ratings than energy or telecom, thanks to the integration of apps, online platforms and physical stores. The company could get even more attention as reliance comes closer to an IPO from the retail trade.

However, despite the daring target of Reliance chairman Mukesh Ambani to double the EBITDA by 2027, investors are not impressed in the short term. The shares of the company went out after the AGM announcements. “The figures were usually in line with earlier guidance, so there was no surprise. The real positive is Reliance Intelligence, but because it is still at a very early stage, the market has not yet charged the market,” Agarwal explained.