Nearly 87% of Indian firms are expected to increase their annual artificial intelligence (AI) spending by more than 10% in the next three years, and approximately 80% of the firms have at least one AI model in production, indicating an extensive penetration of AI/machine learning (ML) across enterprises.
According to a survey conducted by Bain & Company, Microsoft, and the Internet and Mobile Association of India (IAMAI), 64% of providers also use AI/ML as a core component for many of their products, compared to 56% of their global counterparts.
Furthermore, more than 90% of the digital native companies in consumer packaged goods (CPG), retail and financial services have demonstrated the adoption of AI/ML. Share of AI/ML based applications are expected to increase by 94% in the next three years, according to the survey.
“While the availability of data and cloud-based infrastructure have aided AI adoption, concerns related to data security, infrastructure, and management continue to be the most significant barriers for enterprises,” said Velu Sinha, Partner, Bain & Company and co-author of the report.
The report was launched by Amitabh Kant, CEO, of NITI Aayog, in the presence of top executives from the companies. The thrust in AI adoption for enterprises is maximum in sectors such as communication, over-the-top (OTT) and gaming, technology, and financial services.
Further, more than 90 percent of the digital native companies in consumer packaged goods (CPG) and retail and financial services have demonstrated AI/ML adoption.
Nearly 94 percent of AI adopters are likely to increase the share of AI/ML-based applications in the upcoming three years, said the report. Cloud platforms and internet of things (IoT) providers emerge ahead of the other segments of providers on the ‘AI Maturity Index’.
More than 80 percent of the AI/ML features introduced by cloud platforms in India reached production scale and exceeded the expected gains.
While Indian enterprises are keen to build their AI/ML models in-house, they exhibit a preference to buy the scale cloud infrastructure and AI workbenches, which helps them to experiment at will on elastic compute-storage enablement, the report mentioned.
