AI models improving rapidly, sector to see exponential growth in 3 years — Microsoft India President

NEW DELHI — Artificial Intelligence (AI) models are improving at an unprecedented pace and the sector is set to witness exponential growth over the next three years, Puneet Chandok, President of Microsoft India and South Asia, said on Monday.

Speaking at the “AI for Disaster Management: Anticipatory, Hyperlocal, Scalable” session during the AI Impact Summit 2026 here, Chandok said the speed at which AI has advanced in the last few months clearly shows how quickly the technology is evolving.

“The models you have seen today are incredible and we are growing rapidly. With AI, we now have the potential to move forward at a much faster pace. The world is changing and is ready to adopt it,” he said.

Responding to the ongoing debate about whether AI systems are actually improving, Chandok said the progress is clearly visible.

He pointed out that the change seen in the last six months itself has been remarkable.

“The next three years could bring growth in the AI sector at a scale of thousand times,” Chandok noted.

He highlighted that coding has emerged as one of the biggest use cases of AI. What started as simple assistance in coding is now becoming far more advanced and integrated into business operations.

“AI-powered digital colleagues are increasingly becoming teammates within organisations,” Chandok said.

He also noted that AI is now capable of drafting legal documents, raising important questions about how companies will manage sovereignty and control over such systems.

He stressed the need to think about sovereignty at the company level as AI becomes more powerful.

Chandok said businesses are moving from being cloud-first to AI-first. “The next generation of companies will be built primarily on AI foundations rather than just cloud infrastructure,” he explained.

Addressing concerns about job losses, he said AI will not eliminate jobs but will fundamentally reshape them.