US Visa Restrictions Threaten Access to Global AI Talent

Stricter US visa regulations are creating significant hurdles for Indian AI founders, delaying critical business engagements and jeopardizing market access. Founders from emerging firms like LatentForce, Qodex, and Sentient Labs face prolonged B1/B2 visa wait times and rising O-1 denial rates—now at 5.8% in FY24, up from 4.5% the previous year. The O-1 visa, designed for individuals with extraordinary abilities, has seen approvals for Indian applicants surge from 210 in FY18 to 1,375 in FY24, yet the tightening scrutiny introduces uncertainty for startups eyeing US expansion.

Physical presence in the US remains vital for AI startups to secure partnerships, funding, and client relationships. Delays in visa processing are stifling product launches and collaborations, while competitor nations like Canada and Japan capitalize on the talent gap. Immigration barriers risk eroding America's long-standing leadership in AI innovation, as founders pivot to more welcoming ecosystems.