Indian enterprises have moved beyond the experimental phase of artificial intelligence. According to Deloitte’s 2026 State of AI in the Enterprise report, Indian organisations now lead their global counterparts in deploying AI at scale across various business functions.
The data shows that 40 percent of Indian respondents report significant or full usage of AI. This figure stands well above the global average of 28 percent. Rather than focusing on small pilots, these companies are embedding AI into core operations to drive measurable productivity.
Where AI is scaling in India
Adoption is most visible in areas that directly impact growth and operational flow. Product development leads the way, with 62 percent of organizations reporting at-scale deployment. Other key sectors include:
- Strategy and operations: 56 percent
- Marketing and sales: 55 percent
- Supply chain: 48 percent
While the speed of deployment is high, a gap exists in specialised knowledge. Only 0 to 4 percent of Indian organisations report a high level of AI expertise. Globally, this average is between 2 to 8 percent. This suggests that while Indian firms are quick to use the technology, they still need to build deeper technical skills to manage these systems long-term.
Investment and infrastructure priorities
Financial commitment to the technology remains high. The report indicates that 94 percent of Indian organizations plan to increase their AI spending over the next year. This funding targets the foundational elements required to support large-scale systems.
Security and compliance controls are the top investment priority for 68 percent of respondents. This is followed by data storage and management at 61 percent, and scalable infrastructure at 54 percent. Most companies prefer a practical approach to hardware and software. About 49 percent use a “blended” strategy of buying and building, while 31 percent rely on off-the-shelf tools. Only 19 percent choose to build custom, in-house solutions.
Challenges to sustainable growth
The rapid pace of adoption brings specific organisational frictions. Regulatory and compliance requirements serve as the primary hurdle for 39 percent of enterprises. Resistance to change within the workforce follows at 34 percent. Interestingly, cost and infrastructure constraints are less of a concern, cited by only 12 percent and 5 percent of respondents.
In terms to counter these issues, companies are investing in their people. Roughly 61 percent have started upskilling and reskilling programs. Another 59 percent offer incentives to encourage AI usage in daily tasks.
Currently, the dominant strategy in India is incremental change. About 44 percent of companies are redesigning specific processes while keeping their existing business models. Only 17 percent are attempting to fundamentally change their core business. This indicates that Indian leaders prioritise immediate, operational gains over total structural changes.