Tech disrupting traditional industries, warn biz leaders

Technology is rapidly reshaping industries that have long been rooted in tradition, driving a wave of innovation that is transforming everything from finance, banking, steel to manufacturing.

As digital solutions and automation continue to evolve, traditional businesses are seeing opportunities and challenges, said top industry leaders and entrepreneurs at Invest Karnataka 2025 summit.

At a session titled ‘Leading the charge: Young innovators shaping India’s future,’ and anchored by Zerodha co-founder Nikhil Kamath, these leaders were of the view that companies that once relied on legacy systems and manual processes are now embracing cutting-edge technologies like artificial intelligence (AI) to stay competitive.

Suzannah Muthoot, executive director of Muthoot Housing Finance Company (MHFCL), part of the Muthoot Pappachan Group, highlighted AI’s significant role in underwriting, collections, customer service, and reaching rural markets.

This includes evaluating the creditworthiness of borrowers without formal documents, with a focus on the low-middle-income segment.

“I believe it has truly changed the game for us, as it allows us to target a whole new segment that others might have rejected,” said Muthoot.

Muthoot added, “AI also plays a key role in enabling communication in vernacular languages, helping onboard customers who are not well versed in English onto digital platforms.”

Muthoot said that the group is leveraging technologies like QR-based lending in cases where traditional underwriting isn’t possible.

For instance, when onboarding a small kirana shop, the company uses the store's QR code data to assess cash flow and provide the loan.

“We've started to use LLM (large language models) to write software.

"They're getting so much better, but more in the context of a tool in the hands of a skilled engineer,” said Jay Kotak, co-head, Kotak811.

He noted that other key areas of innovation include voice technology and customer service.

He emphasised that the bank's role is to act as an intermediary for capital at the lowest possible cost, with customer service being a significant part of that cost.

“I think AI will undoubtedly make that more efficient,” said Kotak.

Kotak shared that banking has been an ancient industry, largely unchanged for centuries, until recently.

Over the past six or seven years, however, India has seen a drastic transformation.

He pointed out that Unified Payments Interface (UPI) has streamlined small-ticket transactions, eliminating the need for cash.

Aadhaar has redefined know your customer (KYC), making the process much more seamless.

Additionally, demonetisation and the pandemic shifted mindsets, while the handset and telecom revolution made digital access more widespread.

“I think that has fundamentally transformed banking and all financial services.

"So yes, banks in their current shape and form, best to be worried,” said Kotak.

When asked about necessary changes in the banking industry, Kotak emphasised the need for greater empathy towards customers.

“We need to do much better, both as banks and as a financial sector representative, in how we treat our customers.

"This should reflect in areas like tele-calling, branch experiences, and the quality of our mobile apps,” said Kotak.

Parth Jindal, managing director of JSW Cement Limited, JSW Paints Private Limited, and Founder of JSW Sports, noted that AI in heavy manufacturing has had limited applications so far.

He said countries with high labour costs are more motivated to explore AI and technology to reduce expenses.

“I believe AI can be a dangerous tool for us in India, as we need to generate millions of jobs every year.

"When discussions focus on AI replacing jobs on the shop floor and in other sectors, I don't think it will benefit India,” said Jindal.

However, Jindal emphasised that technology plays a crucial role in becoming a more sustainable organisation and reducing carbon footprint.

“Those are the areas where we are focusing on using technology and trying to become more efficient,” said Jindal.