The 2025 State of Enterprise Technology Survey, unveiled by CIO&Leader, paints a clear picture: Indian enterprises are no longer experimenting with AI; they’re operationalizing it.
The State of Enterprise Technology Survey 2025, conducted by CIO&Leader among over 350 CIOs and senior technology leaders, reveals that AI has moved from experiment to enterprise imperative. However, the report warns of a persistent execution gap: only 15.8% of Indian enterprises have operationalized AI at a truly strategic scale—with governance, measurable outcomes, and organization-wide alignment.
AI Now a Boardroom Priority
The annual survey highlights AI’s shift from a “nice-to-have” innovation to a board-mandated growth lever.
- 93% of enterprises will increase AI and analytics investment in 2025—with more than half projecting significant budget hikes.
- 100% of respondents say AI’s primary value lies in better decision-making, cementing its role as a “cognitive enabler” rather than a pure automation tool.
- 98.4% prioritize cost optimization and operational agility, underscoring AI’s dual role in delivering immediate returns and long-term adaptability.
“Investment intent is crystal clear—Indian enterprises want AI embedded into the fabric of decision-making,” said Jatinder Singh, Executive Editor and Research Lead, CIO&Leader. “The challenge is ensuring that these investments mature into governed, measurable programs rather than isolated experiments.”
Unstructured Data Takes Center Stage
The findings also reveal the data reality fueling AI adoption:
- 74.2% report high growth in text-based data, driven by chat, email, and AI-generated content.
- 70.5% see surging image/PDF data, while 47.6% report growth in video and audio content.
This signals a future where unstructured, multi-format data will dominate enterprise AI strategies.
Generative AI and Automation on the Rise
Generative AI deployments have grown 5X since 2023, transforming creative processes from marketing content to software code. By the end of 2025, 30% of IT services will be fully automated by AI—triple current levels.
These advances, however, are fueling a 165% surge in data center energy consumption, prompting enterprises to explore green computing initiatives.
Barriers Shift From Technology to Trust
While early AI adoption hurdles were largely technical, today’s challenges are more strategic and human:
- 91.7% cite data security and privacy risks as the top barrier.
- 90% face data quality challenges.
- 88.3% struggle with selecting the right technologies.
- 83.6% highlight regulatory and ethical risks.
“The AI conversation is no longer just about models and algorithms—it’s about governance, explainability, and organizational readiness,” said R. Giridhar, Head of Research, 9.9 Group.
The Build vs. Buy Paradox
Enterprises are increasingly favoring internal AI development—85% prefer it over packaged tools for control and customization. Yet, only 23% trust their own teams to lead AI innovation, exposing a confidence gap that fuels vendor churn: 78% plan to switch or add vendors in 2025.
Recommendations for 2025
The report outlines a four-point action plan for CIOs and business leaders:
- Build AI literacy across functions to align stakeholders.
- Strengthen governance and security to address privacy and ethical risks.
- Prioritize explainable, integrated AI over opaque black-box solutions.
- Move from pilots to enterprise-scale AI with measurable business outcomes.
About the Survey
The State of Enterprise Technology Survey 2025 by CIO&Leader captures insights from over 350 CIOs and senior technology leaders across Indian enterprises (annual turnover of over ₹5,000 crore). It provides a comprehensive view of AI adoption trends, challenges, and investment priorities for the year ahead