Indian companies are making substantial progress in AI adoption, says IBM report

According to a report by IBM, Indian companies are making substantial progress in artificial intelligence (AI) adoption. Of the organisations surveyed, 87 per cent have accelerated their AI strategies for 2024, and 76 per cent are already seeing positive returns on their investments.

Firms are not only viewing AI as a long-term investment but are also increasingly utilising open-source solutions to drive innovation and boost returns. Notably, 89 per cent of respondents have already initiated over 10 AI pilot projects this year. Further, 93 per cent of surveyed businesses plan to increase their AI spending, and 71 per cent intend to harness open-source ecosystems to enhance their AI initiatives in 2025. However, governance remains a pressing concern, with companies recognising the need for responsible AI.

As per the report, achieving responsible AI deployment involves a structured framework to ensure fairness, transparency, privacy, and explainability. The main hurdles in AI adoption include lack of governance (53 per cent), limited AI expertise (51 per cent), technology integration challenges (51 per cent), data management obstacles (41 per cent), and difficulties in generating business value (39 per cent).

Despite these barriers, Indian enterprises are firmly committed to AI, with 97 per cent planning to either maintain or increase their AI budgets in 2025. They are zeroing in on areas such as IT operations (83 per cent), software coding (56 per cent), and data quality management (55 per cent) to strengthen their AI capabilities.

The report further added, to optimise AI investments, 71 per cent of businesses are placing importance on open-source tools, 70 per cent on managed cloud services, and 66 per cent on hiring specialised AI professionals.

Open-source AI solutions continue to gain traction in India, with nearly 48 per cent of companies reporting that more than half of their AI frameworks rely on open-source technologies. Larger enterprises, in particular, are more inclined to adopt open-source options for their AI needs.