AI leaders on automation; PM Modi debriefs space startups

Business leaders at the Economic Times World Leaders Forum said AI agents can reshape work, but governance and human accountability remain crucial. This and more in today's ETtech Top 5.

Also in the letter:
■ Third Wave Coffee raises funds
■ Microdramas see major traction
■ Apple cuts jobs

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Business leaders at the Economic Times World Leaders Forum (WLF) in New Delhi said artificial intelligence (AI) agents could transform how businesses work, search, and make decisions, but companies must have strong governance, clean data, and human accountability in place before deploying autonomous systems at scale.

Trust needs human oversight:

• Nielsen CTO Anil Goel warned that “AI can be a seductive liar,” and requires clear guidelines and evaluation mechanisms.
• Arctic Wolf CEO Nick Schneider said companies cannot blindly trust one AI agent to supervise another since risks depend on the use case, data, and operating environment.

Yes, and: Nigel Vaz, chief executive of Publicis Sapient, compared the challenge in AI agent adoption to the questions companies faced when they began using large human call centre teams with access to customer data.



(L-R) ETtech's Samidha Sharma in conversation with Fireflies AI's Krish Ramineni, Wispr Flow's Tanay Kothari, Peak XV Partners MD Shailendra J Singh and SiMa AI's Krishna Rangasayee at ET’s World Leaders Forum

Venture capital (VC) firms are becoming “somewhat marginal” in the AI investment cycle as the sector requires much larger pools of capital, Peak XV Partners managing director Shailendra Singh said on Saturday.

On the corporate’s role: Singh said large companies need to play a bigger role in funding AI startups, as corporate balance sheets can support investments beyond the reach of most VC funds. He pointed to HCLTech’s investment in Sarvam AI and Amazon’s backing of Anthropic.

VCs will remain important for spotting and backing companies early, but enterprises will need to become a larger source of capital as the AI cycle expands, he said.

Meanwhile, Menlo Ventures partner Deedy Das said India faces challenges in building globally competitive foundational AI companies, citing a concentration of top research talent in San Francisco and limited appetite for high-risk investments.

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Prime Minister Narendra Modi told India’s private space startups to look beyond satellite launches and build solutions for agriculture, livestock, dairy, environmental protection, and other sectors that impact daily life.

Driving the news: Speaking to 20 space startups during a meeting at his office on Friday, Modi praised the founders for entering a challenging domain, taking risks, and showing faith in the government’s space sector reforms.

“India can offer the world a strong, innovative, and commercially viable model in the space sector,” the PM said on X, adding that the government would continue to support startups as they build the country’s future capabilities.

Practical applications:

• Modi also urged companies to use space data and services to address space debris and practical needs.
• Further, he encouraged startups to work with Atal Tinkering Labs, helping build curiosity about space technology among schoolchildren and creating a future talent pipeline.

Tell me more:

• Pixxel showcased hyperspectral images from its Firefly satellites; it plans to expand its constellation from six to 18-24 satellites over four years.
• GalaxEye discussed Mission Drishti and its plans to develop OptoSAR technology for global markets.
• Digantara highlighted its expansion from space surveillance into missile detection and defence.

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Rajat Luthra, CEO, Third Wave Coffee

Third Wave Coffee has closed a Rs 408 crore ($43 million) round led by existing investor WestBridge Capital, as it looks expand its store presence amid intensifying competition in the premium cafe market.

Deal details:

• The round comprises a mix of primary and secondary capital.
• It saw participation from existing investor Creaegis and angel investors.
• The company did not disclose its valuation or the split between the primary and secondary capital.

Tell me more: Third Wave will use the fresh capital to expand in existing markets, enter new cities, and build out newer categories, including Third Rush Desserts, which it launched earlier this year.

Quote, unquote: “Our focus remains on scaling the business sustainably, with strong unit economics, healthy store payback economics, and operational discipline,” chief executive Rajat Luthra said. The company’s longer-term plan is to add around 100 cafes every year, he added.

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Microdramas are emerging as more than an alternative to Instagram Reels, and see audience engagement similar to long-form programming.

Now playing: A Kantar study found that among people who watch videos for more than two hours a day, microdramas and long-form content each account for 14% of viewing. Microdramas combine the immediacy of short videos with the cliffhanger storytelling of longer shows.

• The study found that 80% of consumers prefer microdramas, almost on par with the 81% that prefer short-form videos and ahead of long-form content (63%).
• While episodes are under two minutes, 86% of viewers spend at least 15 minutes a day watching them and 54% return to the same story on the same day.

Multiple short sessions: Industry players say microdrama is not replacing streaming or long-form entertainment; it is creating a new viewing habit around moments such as commutes, while waiting, or on a break.

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Apple is cutting more than 200 jobs across teams working on Siri and gaming for its Vision Pro headset, as it redirects resources toward new devices and artificial intelligence.

Details:

• About 100 roles are being eliminated in the Vision Pro organisation and another 100 across Siri and software teams, including the Intelligent Systems Experience unit.
• The Siri cuts are linked to Apple’s planned AI-infused version of the assistant, built on a new technical architecture.
• The company is also reorganising AI work as more teams add AI capabilities across apps, features, and services.

Priorities change: Apple is largely shutting its Vision Pro gaming team and trimming the unit producing immersive video. The company told employees this reflects how customers are using the headset and the need to direct investment towards future products.