According to a Cloud Complexity Report by NetApp, India heads the pack in terms of global implementation of artificial intelligence (AI) projects, with 70 per cent companies having AI projects up and running or in motion. This is in stark contrast with 49 per cent global average. In addition, 91 per cent India-based companies will use half or more of their data to train AI models in 2024.

The report analyses experiences of global technology decision-makers deploying AI at scale and shows a stark contrast between AI leaders and AI laggards.

The report found a clear divide between AI leaders and laggards across several areas, including:

  • Regions- 60 per cent AI-leading countries (India, Singapore, United Kingdom, United States of America) have AI projects up and running or in pilot, in stark contrast to 36 per cent in AI-lagging countries (Spain, Australia/New Zealand, Germany, Japan).
  • Industries- Technology leads with 70 per cent AI projects up and running or in pilot, while banking and financial services and manufacturing follow with 55 per cent and 50 per cent, respectively. However, healthcare (38 per cent) and media and entertainment (25 per cent) are trailing.
  • Company size-Larger companies (with more than 250 employees) are more likely to have AI projects in motion, with 62 per cent reporting projects up and running or in pilot, versus 36 per cent smaller companies (with fewer than 250 employees).

Both AI leaders and AI laggards show a difference in their approach to AI:

  • 67 per cent companies in AI-leading countries report having hybrid information technology (IT) environments globally, with India leading (70 per cent) and Japan lagging (24 per cent).
  • 87 per cent Indian companies have optimised IT environments for AI, and some AI-lagging countries like Germany (67 per cent) and Spain (59 per cent) also have AI-ready IT environments.
  • AI leaders are more likely to report benefits from AI, including a 50 per cent increase in production rates, 46 per cent in the automation of routine activities, and a 45 per cent improvement in customer experience.

Despite the divide, there is notable progress among AI laggards in preparing their IT environments for AI, but the window to catch up is closing rapidly.

A significant number of companies in AI-lagging countries (42 per cent) have optimised their IT environments for AI, including Germany (67 per cent) and Spain (59 per cent).

Companies in some AI-lagging countries already report seeing the benefits of a unified data infrastructure in place, such as:

  • Easier data sharing-Spain (45 per cent), Australia/New Zealand (43 per cent), Germany (44 per cent).
  • Increased visibility-Spain (54 per cent) and Germany (46 per cent)

Rising IT costs and ensuring data security are the two biggest challenges in the AI era, but they will not block AI progress. Instead, AI leaders will scale back, cut other IT operations, or reallocate costs from other parts of the business to fund AI initiatives.

  • 53 per cent India-based companies reported being more likely to scale back or cut other parts of IT operations to make room for AI projects.
  • 71 per cent Indian enterprises feel cybersecurity is the biggest challenge for managing the increasing complexity of data across cloud or multicloud environments.
  • This is followed by 52 per cent technology leaders reporting increased skepticism over the cloud and 37 per cent worrying about going overbudget.

As global companies, whether AI leaders or AI laggards, increase investments, they are relying on the cloud to support their goals.

  • Increasing data security investments is a global priority, jumping 25 per cent from 33 per cent in 2023 to 58 per cent in 2024.
  • 82 per cent Indian companies reported plans to improve security within their company’s public cloud usage in 2024.
  • This was followed by cost management and automation of processes at 66 per cent each, and resource inventory and utilisation at 52 per cent.