Indian businesses lead in use of AI among competitors

Indian enterprises are emerging as global frontrunners in adopting and experimenting with artificial intelligence (AI), according to a recent report by Qlik, a leading data integration, analytics, and AI service provider.

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Indian enterprises are rapidly positioning themselves as global leaders in the adoption and experimentation of artificial intelligence (AI), according to a recent report by Qlik, a prominent provider of data integration, analytics, and AI solutions. The report reveals that Indian businesses exhibit greater familiarity with AI technologies and place a stronger emphasis on operational optimization than their global counterparts.

The Qlik study, which surveyed 4,200 respondents including C-Suite executives and AI decision-makers in November 2024, explored global AI adoption trends, challenges, and deployment strategies. The findings reveal that 79% of Indian enterprises report awareness of AI technologies, far surpassing the global average of 59%. This reflects a growing understanding of AI’s transformative potential within the Indian corporate ecosystem.

Operational optimization emerged as a top priority for AI deployment in India, with 56% of enterprises focusing on this area compared to 48% globally. Moreover, 57% of Indian executives view AI as essential for achieving strategic objectives and boosting profitability. However, despite the enthusiasm, Indian businesses face challenges in moving from AI planning to execution. These hurdles include skills gaps, governance issues, trust deficits, and resource limitations.

Aggressive AI Experimentation and Challenges

India leads the world in the number of AI projects across planning, development, and implementation stages. This reflects the country’s aggressive experimentation with AI use cases. However, the report also highlights that India has the highest number of stalled or canceled AI projects. Indian enterprises report an average of 22.2 such projects per organization, significantly higher than the global average of 15.7 and the Asia-Pacific average of 18.5.

The challenges preventing seamless AI adoption in India are multifaceted. The report identifies critical gaps such as a lack of skilled talent (31%) required to develop AI solutions, difficulties in rolling out developed AI systems (18%), and insufficient access to trusted data (26%). Additionally, 28% of respondents pointed to data governance challenges, while 25% cited budget constraints as major obstacles.

Building AI Capabilities: The Road Ahead

Varun Babbar, Managing Director – India, Qlik, emphasized the need for a collaborative approach to strengthen AI capabilities in the country. “India has the talent and ambition to play a key role in the global AI landscape. To make this happen, we need to focus on developing AI skills, building trust in AI, and helping businesses address challenges around governance and resources,” he said.

Babbar further highlighted the importance of partnerships among businesses, governments, and educational institutions to bridge these gaps. By addressing issues related to trust, data governance, and skills shortages, Indian enterprises can unlock the full potential of AI technologies across industries.

Preference for ‘Ready-Made’ AI Solutions

A notable trend emerging from the Qlik report is the increasing preference among Indian enterprises for ‘buy-to-build’ AI solutions. This approach allows businesses to leverage ready-made AI solutions as a starting point, accelerating deployment timelines and delivering quicker returns on investment (ROI). According to the report, 78% of Indian AI leaders recognize the value of outsourcing and implementing pre-developed AI solutions tailored to their specific needs.

India’s proactive adoption and experimentation with AI signal a promising future for the country in the global AI landscape. While challenges such as skills shortages, governance issues, and resource constraints remain, the combination of talent, ambition, and collaborative efforts positions India to lead AI innovation. As organizations prioritize operational optimization and explore ready-made solutions, Indian enterprises are well on their way to maximizing the benefits of AI technologies and driving strategic growth.

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