New Delhi, Aug. 10 -- Dutch investing giant Prosus NV's venture capital arm is training its sights in India on a specific kind of artificial intelligence startup-those developing user-facing AI tools and services.

In its latest annual report, Prosus said the next wave of value from AI would come from the application layer, "where AI is embedded into business workflows". In other words: AI-first startups.

Prosus recently invested in two Indian AI startups geared towards the application layer: Arivihan, an AI-driven learning platform, and CodeKarma, a productivity tool for software developers.

"I think the Indian market is very large. There are over 200 million annual shoppers and 500 million people have access to the internet. A playgro...