83% of Indian executives say effective governance is key to successful AI infrastructure.
A new study by the IBM Institute for Business Value, AI Infrastructure That Endures, reveals that while Indian enterprises are accelerating investments in AI infrastructure, they continue to face a significant readiness gap.
Even as AI becomes central to business transformation, only 1 in 10 Indian business leaders
say their current infrastructure meets all their AI needs, underscoring the need to modernize IT
foundations for speed, scale and trust.
The study also highlights strong investment momentum. 58% of Indian organizations report
increased infrastructure investment due to growing AI demand, with budgets rising by an
average of 19% in 2025, mirroring global trends. Yet, despite this acceleration, organizations
must continue investing in the non-negotiables for AI readiness and thoughtfully lead their
industry transformation.
Subhathra Srinivasaraghavan, Vice President, IBM India Systems Development Lab, said
“Indian enterprises are entering a pivotal phase in their AI journeys where ambition must now
translate into sustainable impact. To do that, organizations must intentionally build infrastructure
that is agile, trusted and talent-led. By optimizing hybrid architectures, embedding robust
governance frameworks and nurturing deeper AI skills, India can accelerate transformative
outcomes across every sector, and move with confidence toward the vision of Viksit Bharat.”
The non-negotiables for AI readiness:
Hybrid Infrastructure for AI Performance
● 65% agree that implementing a ‘fit-for-purpose’ strategy for AI infrastructure has helped
optimize costs and performance.
● 32% plan to expand their hybrid AI infrastructure approach over the next three years.
Trust-by-design for AI at Scale
● 83% agree that effective AI governance is essential for successful AI infrastructure
deployment.
● However, only 4% currently have robust frameworks for managing AI-related risks and
ensuring ethical AI practices.
Talent & Skills for AI Impact
● 83% are investing in training and recruitment for AI-related roles to support infrastructure
modernization.
● 75% remain in the early phases of workforce maturity for AI roles.
● 43% have established an AI Center of Excellence (CoE) to strengthen AI capability and
infrastructure readiness.
To view the full study, visit: https://www.ibm.com/thought-leadership/institute-business-value/en-
us/report/ai-infrastructure