AI-powered risk intelligence is a game-changer for modern governance: Diligent India exec

As India continues to emerge as a global hub for technology and innovation, companies are increasingly leveraging local talent and expertise to drive growth and transformation. Diligent, a major player in Governance, Risk, and Compliance (GRC) solutions, has positioned its India office as a critical center for developing enhanced products and technologies. 

In a recent conversation with TechCircle, Srinivas Chamarthy, Senior Vice President of Engineering, Site Lead, and Country Head for Diligent India, we delved into the company's plans for the future. Chamarthy discussed Diligent’s focus on scaling its operations, its integration of Artificial Intelligence (AI) across products, and how India is contributing to shaping the company’s global offerings. Edited Excerpts:  

Given the rapidly changing tech landscape in India, how is your company positioning itself, especially the Bengaluru Centre, as more than just a delivery hub but a centre for innovation? 

Our tagline is "Clarify Risk. Elevate Governance." We are now evolving it to "Clarify Risk. Elevate Governance with AI." 

We are focused on accelerating our progress. We already operate at a high pace, and now we are asking how we can push even further. How can we deliver stronger results for our customers? 

As our vision develops, you can see innovation reflected across our products, features, systems, and customer impact. Our main goal is to leverage technology to drive rapid innovation for our customers. 

Given this direction, adopting AI is a necessary step. It allows us to enhance everything we offer. You can see the results in the products we've launched, at least nine new releases over the past quarter and a half, including Intelligent REST AI, Board Book Builder, Virtual Assistant, Book Summarisation, and Board Reporting. 

Many of these innovations originated here, with some projects led entirely out of India. Our first proof of concept was developed and rolled out to production from there. 

Given Diligent’s focus on GRC and ESG (environmental, social, and governance), what unique perspective or value does India bring to these global conversations? 

In India, GRC is still evolving. Many companies are now becoming more aware of governance, risk, and compliance practices, but much of this awareness has come through the lessons of high-profile corporate failures. When organisations recognise that the products and solutions we offer could have helped prevent some of these failures, their perception of the value of GRC shifts significantly. 

Across the industry, we continue to see governance gaps, independent directors not fully discharging their responsibilities, and companies that once received prestigious awards like the Peacock Award facing shutdowns just a few years later. These examples highlight how formal recognition does not always reflect the true state of governance within organisations. Many of you will be familiar with some of the cases I’m referring to. 

These real-world experiences are critical in shaping how we view the role of governance, risk, and compliance. They push us to think beyond frameworks and policies, and to design products and solutions that can identify and address risks that might otherwise go unnoticed. 

This practical exposure to governance failures, and the ongoing evolution of corporate practices in India, gives us a unique perspective. It enables us to contribute in a way that is informed not just by theory, but by hard-earned lessons from actual market behavior. 

So can we say that your company is still in a build phase in India or you are now in a scale and lead phase? 

I would say we are currently in a scale and lead phase. If we were still in the build phase, we wouldn’t have reached this level yet. From a personnel perspective, we are already the largest site across all Diligent offices combined. Additionally, the products we are developing here are significant, with the first AI-powered product actually being launched from India. 

In terms of growth, we are actively expanding. We're hiring a lot more people, but I believe the real measure of growth lies not in headcount but in the revenue we generate. From that perspective, we’re on track. Some of our product lines are seeing nearly 100% growth year over year, while others are growing at a steady rate of about 20%. 

To me, that year-over-year growth is the most accurate indicator of how we’re progressing. 

How are you using AI and Machine Learning (ML) in your products, and how much of that innovation comes from India? 

A lot of the AI work is being driven from India. Over the past few months, AI has become central to what we’re doing. We’re using AI across the company, and it’s really interesting how we’ve integrated it. 

In engineering and customer interactions, AI is part of every stage of the software development life cycle, starting from requirements gathering to mockups, prototypes, and minimum value products (MVPs). The product team, which doesn’t always have coding experience, uses AI to create clickable demos and mockups, which are then tested with customer feedback. 

The engineering team takes that input and works on development. If there’s an issue, like a system downtime, we’re building bots to quickly diagnose and resolve the problem. This allows us to respond faster than before, making the whole process more efficient. 

In addition, we’re streamlining tasks like board book creation. Traditionally, these documents are long, time-consuming to compile, and difficult for board members to review. Now, our products can generate board books, summarise key points, and provide actionable insights, saving time and effort. From requirements gathering to development, marketing, and customer experience, everything is being powered by AI, and it's transforming our processes. 

Are there any India-specific ESG regulations you're focusing on that could impact global markets in the future? 

We build solutions for customers in over 130 countries. For example, we offer an AI-powered governance tool that isn’t limited to any single country, like India, Germany, or the US. The key difference lies in varying laws and rules, which we account for in our designs. 

We create configurable software where features may or may not be needed, depending on the country. For instance, an insurance company might require a PAN number in one country but only need an address, date of birth, and proof of employment in another. 

Our customers come from different industries, such as banking and biotechnology, with unique governance and risk requirements. However, we don’t build separate products for each sector. Instead, we design one product that can be customized to meet the needs of diverse industries while complying with their specific regulations. We operate a single platform that serves the diverse needs of all our customers. 

Can you share details about any recent product launches with AI integration? 

We’ve developed several AI-based products that we can discuss. One of them is the Diligent Risk AI. 

Let me explain how it works. Imagine you run a phone manufacturing company and you want to outsource some of your production. If the company you’re outsourcing to doesn’t follow proper controls, you’re still held responsible since you’re the one giving the orders. 

For example, if they used unethical practices like bribery or child labor to obtain their licenses, you wouldn’t know unless you did thorough research. That’s where we come in. 

Our solution helps identify third-party risks by analysing factors like payment issues, labor practices, and financial stability. 

Now, let's broaden the scope. Assessing risk from various sources—news, government data, geopolitical and ESG sources—manually is time-consuming and prone to errors. Our AI-powered Diligent Risk Engine aggregates and analyses risk signals from all these sources. It scores the data, prioritises the risks, and presents them to the customer. 

We also use ML to scan and evaluate the data. The model continually learns, refining its ability to identify relevant risks and generate predictive alerts. These early warnings help risk officers act sooner and more efficiently. 

What are Diligent India's plans for the next two to three years? What are the key focus areas, and are there any plans to expand into new product lines, verticals, or geographies? 

we are launching new products. We're currently working on several of them and exploring new product lines, especially focusing on AI-based innovations. That's something I can confirm. 

As for becoming the biggest GCC for Diligent India, we are already the biggest, and we plan to keep growing. While I can’t share exact numbers, we are set for significant growth, both in terms of product lines and revenue. We’re also looking at new product features, revenue streams, and increasing headcount. 

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