Bengaluru/New Delhi, Aug. 19 -- Elusive big-ticket private funding, low research and development (R&D) investments and a shortage of engineers with specialized skills continue to threaten India's ambition to become a global leader in artificial intelligence (AI).

Last week, a report by industry body National Association of Software and Services Companies (Nasscom) said that while more and more AI startups are seeking funds from venture capital investors, they are still very small in scale. In the first six months of this calendar year, 87% of the $122 million invested by VCs in AI startups went into early-stage investments.

Indian ventures, according to the report, raised less than $16 million in late funding in the first six months of ...