India Emerges as Leading AI Hub with 59% of Domestic Firms Implementing AI: IBM
New Delhi, Feb 15 – India is making significant strides towards becoming a global hub for artificial intelligence (AI), with approximately 59% of enterprise-scale organizations in the country actively using AI in their businesses, according to a recent report by IBM. The study, titled IBM Global AI Adoption Index 2023, highlights the rapid adoption of AI in India and identifies key factors driving its implementation.
One of the top factors driving the adoption of AI in India is the accessibility of AI tools, which have become more readily available and affordable for businesses. The need to reduce costs and automate processes is another driving force behind the increased adoption of AI in the country. Furthermore, there has been a notable increase in the integration of AI into off-the-shelf business applications.
The Indian government has given much-needed impetus to AI adoption and investments by Indian enterprises, while also ensuring responsible and trusted AI with help from industry stakeholders. IBM is actively collaborating with the government to establish guardrails around AI and promote its responsible use, said Sandip Patel, Managing Director of IBM India & South Asia.
While there has been substantial progress in AI adoption, there is still untapped potential for businesses to scale up their implementation. Many companies remain hesitant to move beyond experimentation and deploy AI at scale. To address this, IBM emphasizes the importance of data and AI governance tools in building AI models responsibly and fostering trust among enterprises. Without these tools, companies face risks such as data privacy issues, legal complications, and ethical dilemmas.
The report also sheds light on the ongoing challenges hindering AI adoption in India. These include the difficulty of finding employees with the right skillsets, as well as ethical concerns. However, despite these challenges, the research reveals that a significant number of IT professionals at Indian enterprises are actively implementing or exploring AI technology. Nearly 60% reported actively implementing generative AI, while 34% are in the exploratory phase.
Furthermore, the study indicates that companies have accelerated their investments in AI over the past two years. Specifically, investments have been made in research and development (R&D), workforce re-skilling, and the development of proprietary AI solutions.
The top barriers inhibiting successful AI adoption in India, identified by the report, include limited AI skills and expertise, the lack of tools/platforms for developing AI models, complex integration and scalability of AI projects, ethical concerns, and data complexity.
As India continues to forge ahead as an AI hub, it is crucial for businesses to address these challenges head-on. By investing in AI skills development, adopting robust AI governance frameworks, and leveraging cutting-edge AI tools and platforms, enterprises can unlock the full potential of AI and drive innovation in various sectors.
In conclusion, with 59% of domestic firms actively deploying AI, India is well on its way to becoming a responsible AI hub. The accessibility of AI tools, cost reduction needs, and the integration of AI into off-the-shelf business applications are key driving forces. However, there is still room for growth, and companies must overcome challenges such as skills shortages and ethical concerns to fully embrace AI’s transformative potential. With the right strategies and frameworks in place, India’s AI revolution is set to accelerate, fostering innovation and driving economic growth in the country.
