India’s artificial intelligence (AI) ecosystem finds itself at an interesting crossroads. While investors have become increasingly selective amid global funding headwinds, the country is simultaneously witnessing a steady rise in deal activity, signaling that AI continues to be a bright spot in India’s technology landscape. This paradox — investor caution coexisting with growing momentum — reflects both the maturing nature of India’s startup ecosystem and the strategic importance of AI across sectors.
A Market Maturing Amid Global Volatility
Globally, the funding climate for startups has cooled compared to the peak of 2021–22. Rising interest rates, geopolitical tensions, and stricter due
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