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A report by MarketsandMarkets in 2024 showed that the global AI market size is estimated to grow from USD 214.6 billion in 2024 to USD 1,339.1 billion in 2030, at a CAGR of 35.7%. AI has become an enabler of productivity and innovation. A Forbes Advisor survey conducted in 2023 reported that 56% of businesses use AI to optimise their operations and drive efficiency. Further, 51% use AI for cybersecurity and fraud management, 47% employ AI-powered digital assistants to enhance productivity and 46% use AI to manage customer relationships.

AI has revolutionised business functions. According to a Forbes survey, 40% of businesses rely on AI for inventory management, 35% harness AI for content production and optimisation and 33% deploy AI-driven product recommendation systems for enhanced customer engagement.  This blog addresses the opportunities and challenges posed by integrating AI into operational efficiency.

Artificial Intelligence and its resultant Operational Efficiency

AI has exemplary optimisation or efficiency capabilities and is widely used to do repetitive tasks. These tasks include payroll processing, data entry, inventory management, patient registration, invoicing, claims processing, and others. AI use has been incorporated into such tasks as it can uncover complex patterns using NLP, machine learning, and deep learning beyond human capabilities. It has also shown promise in improving the decision-making process for businesses in time-critical, high-pressure situations. 

AI-driven efficiency is visible in industries such as the manufacturing industry for predictive maintenance, in the healthcare industry for streamlining diagnostics and in logistics for route optimisation. Some of the most common real-world examples of AI increasing operational efficiency are self-driving cars (Tesla), facial recognition (Apple Face ID), language translation (Google Translate), and medical diagnosis (IBM Watson Health)

Harnessing AI has advantages as it helps optimise the supply chain, extend product life cycles, and ultimately conserve resources and cut operational costs. 

Policy Implications for AI Deployment 

Some of the policy implications for development for AI deployment are as follows:

1. Develop clear and adaptable regulatory frameworks for the ongoing and future developments in AI. The frameworks need to ensure that innovation is not hindered while managing the potential risks. 
2. As AI systems rely on high-quality data that is accessible and interoperable to function effectively and without proper data governance, these systems may produce results that are biased, inaccurate and unreliable. Therefore, it is necessary to ensure data privacy as it is essential to maintain trust and prevent harm to individuals and organisations.
3. Policy developers need to focus on creating policies that upskill the workforce which complements AI development and therefore job displacement. 
4. To ensure cross-border applicability and efficiency of standardising AI policies, the policy-makers need to ensure that international cooperation is achieved when developing the policies.

Addressing Challenges and Risks 

Some of the main challenges that emerge with the development of AI are algorithmic bias, cybersecurity threats and the dependence on exclusive AI solutions or where the company retains exclusive control over the source codes. Some policy approaches that can be taken to mitigate these challenges are:

1. Having a robust accountability mechanism. 
2. Establishing identity and access management policies that have technical controls like authentication and authorisation mechanisms. 
3. Ensure that the learning data that AI systems use follows ethical considerations such as data privacy, fairness in decision-making, transparency, and the interpretability of AI models.

Conclusion 

AI can contribute and provide opportunities to drive operational efficiency in businesses. It can be an optimiser for productivity and costs and foster innovation for different industries. But this power of AI comes with its own considerations and therefore, it must be balanced with proactive policies that address the challenges that emerge such as the need for data governance, algorithmic bias and risks associated with cybersecurity. A solution to overcome these challenges is establishing an adaptable regulatory framework, fostering workforce upskilling and promoting international collaborations. As businesses integrate AI into core functions, it becomes necessary to leverage its potential while safeguarding fairness, transparency, and trust. AI is not just an efficiency tool, it has become a stimulant for organisations operating in a rapidly evolving digital world.

References

• https://indianexpress.com/article/technology/artificial-intelligence/ai-indian-businesses-long-term-gain-operational-efficiency-9717072/ 
• https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html
• https://www.forbes.com/councils/forbestechcouncil/2024/08/06/smart-automation-ais-impact-on-operational-efficiency/ 
• https://www.processexcellencenetwork.com/ai/articles/ai-operational-excellence 
• https://www.leewayhertz.com/ai-for-operational-efficiency/ 
• https://www.forbes.com/councils/forbestechcouncil/2024/11/04/bringing-ai-to-the-enterprise-challenges-and-considerations/  

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Introduction

The Department of Telecommunications (DoT) has launched the 'Digital Intelligence Platform (DIP)'and the 'Chakshu' facility on the Sanchar Saathi portal to combat cybercrimes and financial frauds. Union telecom, IT and railways minister Ashwini Vaishnaw announced the initiatives, stating that the government has been working to counter cyber frauds at national, organizational, and individual levels. The Sanchar Saathi portal has successfully tackled such attacks, and the two new portals will further enhance the capacity to check any kind of cyber security threat.

The Digital Intelligence Platform is a secure and integrated platform for real-time intelligence sharing, information exchange, and coordination among stakeholders, including telecom operators, law enforcement agencies, banks, financial institutions, social media platforms, and identity document issuing authorities. It also contains information regarding cases detected as misuse of telecom resources.

The 'Chakshu' facility allows citizens to report suspected fraud communication received over call, SMS, or WhatsApp with the intention of defrauding, such as KYC expiry, bank account/payment wallet/SIM/gas connection/electricity connection, sextortion, impersonations a government official/relative for sending money, and disconnection of all mobile numbers by the Department of Telecommunications.

The launch of these proactive initiatives or steps represents another significant stride by the Ministry of Communications and the Department of Telecommunications in combating cybersecurity threats to citizens' digital assets.

In this age of technology, there is a reason to be concerned about the threats posed by cybercrooks to individuals and organizations. The risk of using digital means for communication, e-commerce, and critical infrastructure has increased significantly. It is important to have proper measures in place to prevent cybercrime and destructive behavior. The Department of Telecommunication has unveiled "Chakshu," a digital intelligence portal aimed at combating cybercrimes. This platform seeks to enhance the country's cyber defense capabilities by providing enforcement agencies with effective tools and actionable intelligence for countering cybercrimes, including financial frauds.

Digital Intelligence Platform (DIP)

Digital Intelligence Platform (DIP) developed by the Department of Telecommunications is a secure and integrated platform for real-time intelligence sharing, information exchange and coordination among the stakeholders i.e. Telecom Service Providers(TSPs), law enforcement agencies (LEAs), banks and financial institutions(FIs), social media platforms, identity document issuing authorities etc. The portal also contains information regarding the cases detected as misuse of telecom resources. The shared information could be useful to the stakeholders in their respective domains. It also works as a backend repository for the citizen-initiated requests on the Sanchar Saathi portal for action by the stakeholders. The DIP is accessible to the stakeholders through secure connectivity, and the relevant information is shared based on their respective roles. However, the platform is not accessible to citizens.‍

What is Chakshu?

Chakshu, which means “eye” in Hindi, is a new feature on the Sanchar Saathi portal. This citizen-friendly platform allows you to report suspicious communication you receive via calls, SMS, or WhatsApp. “Chakshu” is a new advanced tool to safeguard against modern-day cybercriminal activities. Chakshu is a sophisticated design that uses the latest technologies for assembling and analyzing digital information and provides law enforcement agencies with useful data on what should be done next. Below are some of its attributes.

Here are some examples of what you can report:

-       Fraudulent messages claiming your KYC (Know Your Customer)details need to be updated.

-       Fraudulent requests to update your bank account, payment wallet, or SIM card details.

-       Phishing attempts impersonating government officials or relatives asking for money.

-       Fraudulent threats of disconnection of your sim connections.

How Chakshu Aims to crackdown Cybercrime and Financial Frauds

Chakshu is a new tool on the Sanchar Saathi platform that invites individuals to report suspected fraudulent communications received by phone, SMS, or WhatsApp. These fraudulent activities may include attempts to deceive individuals through schemes such as KYC expiry or update requests for bank accounts, payment wallets, SIM cards, gas connections, and electricity connections, sextortion, impersonation of government officials or relatives for financial gain, or false claims of mobile number disconnection by the Department of Telecommunications.

The tool is well-designed and equipped to help the investigators with actionable intelligence and insights, enabling LEAs to conduct targeted investigations on financial frauds and cyber-crimes; the tool helps in gathering a comprehensive data analysis and evidence collection capability by mapping out the connection between individuals, organizations and illicit activities, it, therefore, allows the law enforcement agencies in dismantling criminal activities and help the law enforcement agencies.

Chakshu’s Impact

India has launched Chakshu, a digital intelligence tool that strengthens the country's cybersecurity policy. Chakshu employs modern technology and real-time data analysis to enhance India's cyber defenses. Law enforcement can detect and neutralize possible threats by taking proactive approach to threat analysis and prevention before they become significant crises. Chakshu also improves the resilience of critical infrastructure and digital ecosystems, safeguarding them against cyber-attacks. Overall, Chakshu plays an important role in India's cybersecurity posture and the protection of national interests in the digital era.

Where can Chaksu be accessed?

Chakshu can be accessed through the government's Sanchar Saathi web portal:https://sancharsaathi.gov.in

Conclusion

The launch of the Digital Intelligence Platform and Chakshu facility is a step forward in safeguarding citizens from cybercrimes and financial fraud. These initiatives use advanced technology and stakeholder collaboration to empower law enforcement agencies. The Department of Telecommunications' proactive approach demonstrates the government's commitment to cybersecurity defenses and protecting digital assets, ensuring a safer digital environment for citizens and critical infrastructure.

References

• https://telecom.economictimes.indiatimes.com/news/policy/dot-launches-digital-intelligence-portal-chakshu-facility-to-curb-cybercrimes-financial-frauds/108220814
• https://bankingfrontiers.com/digital-intelligence-platform-launched-to-curb-cybercrime-financial-fraud/
• https://www.business-standard.com/india-news/calcutta-hc-justice-abhijit-gangopadhyay-sends-his-resignation-to-prez-cji-124030500367_1.html
• https://www.the420.in/dip-chakshu-government-launches-powerful-weapons-against-cybercrime/
• https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2011383

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Introduction

The Indian government has developed the National Cybersecurity Reference Framework (NCRF) to provide an implementable measure for cybersecurity, based on existing legislations, policies, and guidelines. The National Critical Information Infrastructure Protection Centre is responsible for the framework. The government is expected to recommend enterprises, particularly those in critical sectors like banking, telecom, and energy, to use only security products and services developed in India. The NCRF aims to ensure that cybersecurity is protected and that the use of made-in-India products is encouraged to safeguard cyber infrastructure. The Centre is expected to emphasise the significant progress in developing indigenous cybersecurity products and solutions.

National Cybersecurity Reference Framework (NCRF)

The Indian government has developed the National Cybersecurity Reference Framework (NCRF), a guideline that sets the standard for cybersecurity in India. The framework focuses on critical sectors and provides guidelines to help organisations develop strong cybersecurity systems. It can serve as a template for critical sector entities to develop their own governance and management systems. The government has identified telecom, power, transportation, finance, strategic entities, government entities, and health as critical sectors.

The NCRF is non-binding in nature, meaning its recommendations will not be binding. It recommends enterprises allocate at least 10% of their total IT budget towards cybersecurity, with monitoring by top-level management or the board of directors. The framework may suggest that national nodal agencies evolve platforms and processes for machine-processing data from different sources to ensure proper audits and rate auditors based on performance.

Regulators overseeing critical sectors may have greater powers to set rules for information security and define information security requirements to ensure proper audits. They also need an effective Information Security Management System (ISMS) instance to access sensitive data and deficiencies related to operations in the critical sector. The policy is based on a Common but Differentiated Responsibility (CBDR) approach, recognising that different organisations have varying levels of cybersecurity needs and responsibilities.

India faces a barrage of cybersecurity-related incidents, such as the high-profile attack on AIIMS Delhi in 2022. Many ministries feel hamstrung by the lack of an overarching framework on cybersecurity when formulating sector-specific legislation. In recent years, threat actors backed by nation-states and organised cyber-criminal groups have attempted to target the critical information infrastructure (CII) of the government and enterprises. The current guiding framework on cybersecurity for critical infrastructure in India comes from the National Cybersecurity Policy of 2013. From 2013 to 2023, the world has evolved significantly due to the emergence of new threats necessitating the development of new strategies.

Significance in the realm of Critical Infrastructure  

India faces numerous cybersecurity incidents due to a lack of a comprehensive framework.  Critical Information Infrastructure like banking, energy, healthcare, telecommunications, transportation, strategic enterprises, and government enterprises are most targeted by threat actors, including nation-states and cybercriminals. These critical information sectors especially by their vary nature as they hold sensitive data make them prime targets for cyber threats and attacks. Cyber-attacks can compromise patient privacy, disrupt services, compromise control systems, pose safety risks, and disrupt critical services. Hence it is of paramount importance to come up with NCRF which can potentially address the emerging issues by providing sector-specific guidelines.

The Indian government is considering promoting the use of made-in-India products to enhance Cyber Infrastructure

India is preparing to recommend the use of domestically developed cybersecurity products and services, particularly for critical sectors like banking, telecom, and energy, to enhance national security in the face of escalating cybersecurity threats. The initiative aims to enhance national security in response to increasing cybersecurity threats.

Conclusion

Promoting locally made cybersecurity products and services in important industries shows India's commitment to strengthening national security. A step of coming up with the National Cybersecurity Reference Framework (NCRF) which outlines duties, responsibilities, and recommendations for organisations and regulators shows the critical step towards a comprehensive cybersecurity policy framework which is a need of the hour. The government underscoring made-in-India solutions and allocating cybersecurity resources underlines its determination to protect the country's cyber infrastructure in light of increasing cyber threats & attacks.  The NCRF is expected to help draft sector-specific guidelines on cyber security.

References

• https://indianexpress.com/article/business/market/overhaul-of-cybersecurity-framework-to-safeguard-cyber-infra-govt-may-push-use-of-made-in-india-products-9133687/
• https://vajiramandravi.com/upsc-daily-current-affairs/mains-articles/national-cybersecurity-reference-framework-ncrf/
• https://m.toppersnotes.com/current-affairs/blog/to-push-cyber-infra-govt-may-push-use-of-made-in-india-products-DxQP
• https://appkida.in/overhaul-of-cybersecurity-framework-in-2024/

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