The Transformative Power of AI in Enterprise Search: Insights from Elastic

The integration of search technology and artificial intelligence (AI) is reshaping how organizations manage and analyze data. AI-powered search tools are enabling businesses to make more informed and personalized decisions by effectively navigating extensive datasets and uncovering intricate patterns and trends that traditional methods may overlook. One company at the forefront of this transformation is Elastic, a US-based enterprise search firm known for its flagship product, Elasticsearch. With the incorporation of AI and generative AI, Elastic’s approach to enterprise search has evolved significantly, offering new capabilities to its clients.

A Growing Presence in India

In a recent interaction with TechCircle, Ashutosh Kulkarni, CEO of Elastic, shared insights into the company’s growth trajectory in India. He highlighted that India ranks as one of Elastic’s fastest-growing regions globally, serving as its second-largest base after the United States. The Indian operations encompass research and development, support, marketing, and finance, with a significant presence in Bangalore, Delhi, and Mumbai.

Kulkarni noted that Elastic reported nearly $1.5 billion in revenue last fiscal year, supported by a workforce of around 3,500 employees and over 20,000 global customers, including more than half of the Fortune 500. The company collaborates with various sectors, including payments, fintech, logistics, banking, telecommunications, and automotive. The rapid technological advancements in India, particularly in fintech and healthcare, present substantial opportunities for Elastic, especially with initiatives like the Unified Payments Interface (UPI) and electronic Know Your Customer (eKYC) significantly transforming the financial landscape.

Leveraging AI for Enhanced Enterprise Search

Elastic’s approach to enterprise search is deeply rooted in the integration of AI technologies. The company recognizes that the fusion of search technology and AI is revolutionizing data management and analysis. Generative AI, in particular, has transformed how users interact with data, allowing for a more intuitive and conversational query process. Unlike traditional search methods, which require users to input specific queries and sift through results, generative AI enhances user experience through semantic search.

For instance, companies like Meesho leverage AI to better understand user intent, improving product search accuracy and boosting conversion rates, especially for users in smaller cities accessing diverse products via mobile. Elastic facilitates generative AI applications by integrating all company data into its platform, thereby enhancing semantic search capabilities. Notably, an Indian employee engagement Software-as-a-Service (SaaS) company has improved its internal search functionalities using Elastic’s generative AI technology. Similarly, a major automotive company has developed an internal chatbot to query observability data, while a recruitment platform employs Elastic’s semantic search features to enhance its application search functions.

Navigating Challenges in the Indian Market

Despite its strong market position, Kulkarni acknowledges that the primary challenge lies not in competition but in continuously facilitating new use cases for customers globally. The linguistic landscape in India presents a unique challenge, as the country recognizes 22 official languages and nearly 1,800 dialects. This complexity is compounded by the fact that many individuals in India prefer verbal communication over written text, necessitating the development of advanced technologies such as text-to-speech and speech-to-text systems.

Elastic is focusing its efforts on creating transformers and language models capable of effectively handling this linguistic diversity. By addressing these challenges, the company aims to enhance its offerings and better serve the Indian market.

Prioritizing Cybersecurity in Enterprise Search

In an era where data security is paramount, Elastic places significant emphasis on cybersecurity, particularly concerning sensitive business data. Kulkarni outlined the company’s commitment to protecting data security and privacy through robust access controls, regular software updates, and compliance with regulatory standards. Notably, 25% of Elastic’s business is driven by security-related use cases.

The company’s security information and event management (SIEM) solution utilizes generative AI to help organizations detect and respond to security threats in real-time. By transitioning from an ‘alert view’ to an ‘attack view,’ security teams can differentiate between alerts more effectively, enhancing their response to actual threats. Elastic is actively advancing its cybersecurity initiatives in India and globally, ensuring that its clients can operate securely in an increasingly complex digital landscape.

Investing in Talent and Upskilling

As Elastic continues to grow, the company is also focused on hiring and upskilling its workforce in India, particularly in the realm of AI advancements. Kulkarni mentioned that Elastic recently hosted a CXO panel in New Delhi, bringing together representatives from various organizations to discuss the growing need for developers with advanced AI skills. The company is prioritizing advanced training for its engineers and is committed to equipping its customers’ teams to thrive in an AI-driven landscape.

Looking Ahead: Key Focus Areas for India

The next 12 months will be crucial for Elastic as it aims to capitalize on the scale, diversity, entrepreneurial spirit, and government initiatives driving transformation in India, particularly in technology and AI. Kulkarni emphasized that the company’s primary focus will be on AI and generative AI initiatives, alongside search, observability, and security. With a recent 30% expansion in its cloud business and an overall growth rate of 18%, Elastic anticipates that its investments in India will exceed its global growth.

As Elastic continues to expand its footprint in India, it is also working extensively with the public sector, expecting to gain more clients in this area in the coming months. The company’s commitment to innovation and its focus on addressing the unique challenges of the Indian market position it well for continued success in the evolving landscape of enterprise search and AI.

Conclusion

The integration of AI into enterprise search is not just a trend; it is a transformative force that is reshaping how organizations manage and analyze data. With leaders like Elastic at the forefront, businesses can expect to see enhanced capabilities that drive more informed and personalized decision-making. As the company continues to invest in India and adapt to the unique challenges of the market, it is poised to play a pivotal role in the future of enterprise search and AI-driven solutions.