- Indian enterprises are set to ramp up their AI spending in 2024, driven by successful AI projects and the realization of noticeable benefits.
- Enterprises are benefiting from actionable insights and improved decision-making (81%), improved customer interactions (75%), and better forecasts of market demand (72%).
- AI & ML solutions are widely used in bolstering cybersecurity, innovating customer engagement, and creating tailored products and services
- However, the adoption of AI is throwing up significant hurdles, including the selection of the right technologies (46%), identifying suitable use cases (44%), and getting data to train AI models (41%)
Sixty-eight percent of IT Leaders said they are gearing up for an increase in AI spending over the next 12 months, according to a recent CIO&Leader survey of 300+ CIOs and technology heads from top Indian organizations.
The annual “State of Enterprise Technology” Survey was conducted between July and September 2023. The survey revealed that the versatility of AI is prompting businesses to explore diverse applications in the context of business operations, driving growing interest in using AI.
Figure 1
The surge in AI investment can be attributed to successful outcomes of pilot projects, with:
- 25% of respondents foresing a substantial rise in spending
- 43% of participants anticipating a moderate increase
- Only 15% of the respondents are undecided about future spending on AI and ML.
R. Giridhar, Group Editor and Head of Research at 9.9 Group says, “The marked increase in AI spending reflects a fundamental shift in enterprise technology investment strategies. It highlights the growing realization of the transformative impact of AI on business operations and its tangible benefits.”
Tech Developments Key to Unlocking Potential
The survey underscores the substantial enhancement of AI capabilities, driven by increased availability of data and cloud-enabled processing power. The availability of large volumes of data, multiple AI platforms and cloud-based resources, a growing skill base, and accelerating technological advancements are coming together to lower barriers to trial and adoption.
While business functions like IT operations, sales and marketing, and customer service have been quick to leverage the benefits of AI/ML, survey respondents anticipate supply chain, HR and finance-related processes also have a good potential for using specialized AI/ML solutions.
Businesses are using AI to re-imagine customer engagement strategies, deliver highly personalized products and services, and boost defense against cyberthreats. Jatinder Singh, Executive Editor at CIO&Leader, says, “This survey highlights AI’s pivotal role in generating insights, optimizing decision-making, and elevating customer experiences. It reflects AI’s evolution from a technological tool to a strategic business growth catalyst.”
Figure 2
Technology, Data, and Compliance are the top challenges
Despite the growing enthusiasm for AI, organizations are struggling to cope with the profusion of choices and the rapid pace of technological evolution. Selecting an AI framework, platform, and tools to align with business needs is becoming a formidable challenge. More than one-half of the respondents also cited the challenge of selecting the correct technology as a significant barrier to scaling AI deployments. Additionally, 54% of participants are concerned about protecting AI systems from cyber threats, particularly in critical applications. Ensuring AI’s compliance with emerging regulatory standards is another significant concern that was highlighted by nearly half of the survey participants.
About the State of Enterprise Technology Survey
The “State of Enterprise Technology” is a comprehensive study that explores important technology trends shaping Indian businesses. It provides insights into the current landscape of enterprise IT in India, technology adoption patterns, challenges, and drivers for specific technologies in the year ahead.
The report is based on surveys conducted with 300+ IT decision-makers from India’s top organizations between July and September 2023. The study covers Cloud Infrastructure, Security, Data and Analytics, and Artificial Intelligence (AI).