India’s corporate sector is actively embracing artificial intelligence (AI), yet the extent of readiness varies significantly across organisations. A recent Cisco study reveals that only 18% of Indian companies are fully prepared to deploy AI technologies, a decline from 26% the previous year. This downturn highlights the challenges businesses face in adopting and effectively leveraging AI.
Despite these challenges, AI adoption is on the rise. IBM’s 2023 report indicates that 59% of large Indian enterprises have actively integrated AI into their operations. Notably, 74% of these early adopters have accelerated investments in research and development and workforce reskilling over the past two years.
However, several obstacles hinder widespread AI implementation. The Cisco study identifies limited AI skills and expertise, lack of necessary tools for developing AI models, and the complexity of integrating AI projects as significant barriers. Additionally, ethical concerns and data complexity pose challenges for organisations striving to harness AI’s full potential.
The urgency to adopt AI is palpable among Indian businesses. The Cisco report notes that 75% of respondents believe they have a maximum of one year to implement an AI strategy before facing substantial negative business impacts. This urgency is further emphasised by the fact that 95% of organisations are either developing or already have a defined AI strategy.
To bridge the readiness gap, companies are allocating significant resources toward AI. The Cisco study highlights that 57% of Indian businesses are dedicating 10% to 30% of their IT budgets to AI deployments. Moreover, 39% plan to allocate more than 40% of their IT budgets to AI investments in the next four to five years.
While India’s corporate sector demonstrates a strong commitment to AI adoption, a considerable number of organisations remain unprepared to fully leverage AI technologies. Addressing challenges related to infrastructure, talent acquisition, and ethical considerations is crucial for India Inc. to realise AI’s transformative potential.