“Artificial intelligence, ‘if done well’, will trigger massive value creation and spawn new industries beyond anyone’s imagination.”
Red Hat, an enterprise open-source solutions company acquired by IBM in 2019 for approximately USD 35 billion, views India as one of the fastest-growing markets globally. The country's expanding enterprise sector and robust technical innovation capabilities present significant opportunities, according to its CEO, Matt Hicks.
In a discussion about the impact of AI on tech sector jobs and salaries, Hicks expressed to PTI that artificial intelligence, "if done well", could lead to significant value creation and the emergence of entirely new industries.
Hicks emphasized that Red Hat is capitalizing on a solid foundational base in India, enhancing its capabilities with technology roles. "I think India, at this point, is one of the strongest markets in the world with its fundamentals...When I look at the opportunity in India...one, it is a high-growing market and has enterprise needs, so that is a great fit for us...Also, the core technical innovation base exists in masses in India, so being able to start that and reach the entire nation through things like open source technologies, that is what really gets me excited about India," he remarked.
He noted his amazement at the ingenuity and innovative capabilities within India and anticipates seeing much more in the coming years. Red Hat is making strategic investments to support growth in this vibrant market.
"That said, we already have a really strong presence in engineering both from our sales or go-to-market teams as well as core support and engineering. One area for us as we see tools like AI, they tend to expand the capabilities. So, if I look at India, where we have a tremendous support organization, which sits very close to engineering, amplifying their work and capabilities with tools like this, let us reimagine what those teams can do," Hicks explained.
Addressing the implications of AI on tech jobs and wages, Hicks believes that AI, "if done well", will be value accretive and able to create industries "we can’t even think of today." He drew a parallel with the historical transformation of the US from an agrarian economy to one that includes a booming video gaming industry, which has fostered numerous jobs.
"We’re at a similar point right now where this will change and amplify what we do, but it will also create new opportunities. I do think that there are jobs and that this can amplify your capabilities to learn more...do more novel work...But if you only stay in the areas where LLMs and language can be impacted, they will get very good at doing that work," added Hicks, encouraging his teams to experiment with new tools and learn continuously.
Hicks also noted that when used correctly, AI could lead to productivity gains, career advancement, and higher wages. "So, I think, used right, it’s positive for associates and companies. If people hope it will go away or hope it will not disrupt their business or them, that is a dangerous path to take. I think the technology is here to stay, and I think, it will challenge the ‘I-just-don’t-want-things-to-change (mindset),” he stated.
Hicks highlighted that embracing AI and leveraging it to enhance business and lives would lead to positive outcomes.
Comparatively, Hicks pointed out that India demonstrates a technology-focused growth trajectory. "They are very comfortable with technology, actually very comfortable with open source technology, and have an incredible growth engine at scale in enterprise markets. That is what makes India a really, really strong market for us...is that intersection combination," he commented.
At last week's Red Hat Summit, in his keynote address, Hicks predicted that AI development wouldn't be monopolized by a single vendor but would instead be characterized by a flexibility of choices. He noted that innovation is progressing rapidly, with significant advancements occurring frequently. He also emphasized the growing impact of the open-source ecosystem on AI development, outlining Red Hat's strategic focus and initiatives in AI, accompanied by several announcements and new partnerships at the flagship event.
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