IBM's Global AI Adoption Index 2023 report has found that 59% of enterprise-scale organisations in India — with over 1,000 employees — have actively incorporated artificial intelligence (AI) into their business operations. The study states that India has the highest deployment rate among the countries surveyed.
The research also shed light on the fact that early adopters in India, constituting 74% of surveyed enterprises, have accelerated their investments in AI over the past 24 months. Areas such as research and development (R&D) and workforce reskilling have witnessed substantial AI integration.
Skills gap remains the biggest barrier to AI adoption in India
However, the study noted that the top five barriers hindering successful AI adoption at enterprises, both exploring or deploying AI, are limited AI skills and expertise (30%), lack of tools/platforms for developing AI models (28%), AI projects being too complex or difficult to integrate and scale (27%), ethical concerns (26%) and too much data complexity (25%).
Addressing these challenges is expected to be a priority in 2024, the study stated, with a focus on providing relevant skills and implementing a robust AI governance framework.
Sandip Patel, Managing Director of IBM India & South Asia, highlighted the potential for even greater AI adoption: "The increase in AI adoption and investments by Indian enterprises is a good indicator that they are already experiencing the benefits from AI. However, there is still a significant opportunity to accelerate as many businesses are hesitant to move beyond experimentation and deploy AI at scale."
Patel emphasised the importance of data and AI governance tools for responsible AI model development, stating that without proper governance, AI could expose companies to issues such as data privacy concerns, legal complications, and ethical dilemmas.
Key highlights
Steady AI adoption at large organisations: Currently, 59% of IT professionals at large organisations in India report active deployment of AI, with an additional 27% actively exploring its use.
Accelerated investments: A notable 74% of IT professionals in companies deploying or exploring AI indicate an acceleration of investments in areas like R&D, reskilling, and building proprietary AI solutions over the past 24 months.
Skills gap challenges: The skills gap remains the most significant barrier to AI adoption in India, with limited AI skills and expertise identified by 30% of respondents.
Trustworthy AI: 94% of respondents underscore the importance of being able to explain how their AI model reached a decision, indicating a strong correlation between trust and AI adoption.
Workforce impact: AI is already impacting the workforce, with companies using AI to address labour shortages by automating manual tasks, implementing customer self-service solutions, and enhancing recruitment and human resources.
As AI continues to evolve, IBM's report suggested that India is poised to lead the way in AI adoption, with the need for skill development and ethical considerations serving as crucial focal points in the months to come.
