Nearly 6 out of 10 large enterprises in India actively incorporating AI into operations: IBM

A noteworthy 59% of surveyed large-scale organisations in India actively integrate artificial intelligence (AI) into their business operations, revealed a new report from IBM, titled 'IBM Global AI Adoption Index 2023'.

The study emphasizes the leadership of early adopters, revealing that 74% of Indian enterprises already engaged with AI have ramped up their investments in critical areas like research and development (R&D) and workforce reskilling within the last 24 months.

Despite the positive momentum, challenges persist on the path to widespread AI adoption. Issues such as the recruitment of employees with the requisite skill sets and ethical concerns act as hurdles, preventing businesses from fully embracing AI technologies. The report suggests that addressing these obstacles, particularly by providing individuals with the necessary skills to work with AI and establishing a robust AI governance framework, should be a top priority in 2024.

According to Sandip Patel, Managing Director of IBM India and South Asia, the increased adoption and investments in AI by Indian enterprises indicate tangible benefits. However, there remains untapped potential, as many businesses hesitate to move beyond experimental phases and deploy AI at scale.

At present, the report indicates that 59% of IT professionals in large organisations report active deployment of AI, with an additional 27% actively exploring its usage. Similarly, around 60% of IT professionals in enterprises are actively implementing generative AI, while 34% are in the exploration phase.

Key drivers behind AI adoption include the increasing accessibility of AI tools (59%), the need to reduce costs and automate essential processes (48%), and the growing integration of AI into standard off-the-shelf business applications (47%).

Despite these driving factors, the journey toward seamless AI adoption faces barriers. The top five hindrances include limited AI skills and expertise (30%), a lack of tools/platforms for developing AI models (28%), the complexity and difficulty of integrating and scaling AI projects (27%), ethical concerns (26%), and the challenge of dealing with intricate data (25%), as noted in the report.

As the AI landscape continues to evolve, these insights underscore the importance of concerted efforts to overcome challenges, unlocking the full potential of AI across Indian enterprises.

In a recent report released on February 13, global consultancy firm EY conducted a study revealing that 68% of Chief Experience Officers (CXOs) in Indian tech-services anticipate a significant impact, ranging from high to existential, from Generation AI (Gen AI) on their businesses. The study emphasizes that Gen AI's influence is expected to be most pronounced in the realms of customer experience, with 89% of respondents expressing this sentiment, followed by innovation (66%), cost reduction (48%), and revenue growth (48%).

Despite these positive projections, the report highlights that 64% of CXOs feel that their organisations are inadequately prepared to harness the potential of Gen AI, ranking their readiness from "very low" to "moderate." The study identifies key factors hindering the adoption of Gen AI, including a skills gap (50%), unclear use cases (36%), and a perceived lack of focus on Gen AI initiatives (20%). These challenges underscore the need for strategic planning and investment in addressing the gaps to fully realise the benefits of Gen AI across organisations.