Greater adoption of cloud, AI/ML makes Indian firms resilient to global crises: Report

Indian companies have demonstrated resilience in the face of a challenging global landscape, owing to increased adoption of cloud, analytics, artificial intelligence (AI) and machine-learning (ML), according to a new research report. 

The report based on a study by Forrester Consulting and commissioned by information services firm Experian showed that about 85% of Indian businesses are utilising external cloud providers for analytics, surpassing countries like Germany, New Zealand, and Spain. 

The study also explored the impact of artificial intelligence on analytics, risk assessment, and customer experience, with increased AI and machine-learning adoption rates. These rates reached 49% in customer service and 40% in identity verification, it said. 

Addressing risk concerns, the report highlights data privacy (59%) and cybersecurity (53%) as top priorities for Indian businesses. AI emerges as a pivotal tool in fortifying resilience, particularly in mitigating risks such as ESG risk (47%) and credit risk (41%). 

Achieving AI success necessitates a robust data infrastructure, with 86% of business leaders prioritising investments in new data sources. Data privacy and cybersecurity concerns remain, with 48% finding difficulty in effectively sharing data at scale. 

Cloud technology plays a crucial role, as 86% prioritise investments to seamlessly integrate data for AI/ML use cases. Sixty-three per cent favour externally hosted cloud services to avoid data silos and aggregate diverse data sources. 

The study stresses AI's potential for productivity and efficiency enhancements. Organisations actively explore AI use cases, including ML-based models for enhanced underwriting, proactive customer identification, fraud prevention, and faster customer service.  

In fact 74% of Indian financial services and telcos companies as seen in the survey are using cloud for credit risk decisioning and 60% of Indian businesses see open banking as a gateway to new customer-consented data in open finance. 

Notably, 65% of those using AI report that productivity gains offset the initial costs, showcasing positive returns on investment. 

Saikrishnan Srinivasan, Managing Director at Experian, underscores the pivotal role of AI in optimising business processes and decision-making. He said, "AI/ML has increasingly emerged as a pivotal catalyst in combating new fraud challenges, automating credit risk processes, and leveraging alternative data. AI is rapidly transitioning from a choice to a necessity, driving improved business performance and fostering inclusive financial growth." 

To be sure, another report published earlier this week by tech firm Automation Anywhere has shown that a whopping 63% of Indian companies are planning to invest in intelligent automation, analytics, and generative AI in 2024. This marks an 85% increase in planned investments from the previous year, showcasing a growing focus on cutting-edge technologies. Looking ahead, the report predicts a surge in AI-driven innovations, especially as 72% of global respondents plan to invest in AI and machine learning over the next 12 months.