India is racing ahead in adopting artificial intelligence, but a new report warns that weak data foundations and cybersecurity risks could stall progress.
According to a global study ‘The Challenges to Ensuring Information Is Secure, Compliant and Ready for AI’ by the Ponemon Institute, sponsored by OpenText, 48% of Indian enterprises have already embedded AI into their IT and business strategies among the highest adoption rates worldwide. Generative AI (GenAI) is being applied not just for productivity, but in mission-critical areas: 46% of Indian organizations are using it in security operations and 44% for business reporting, both well above global averages
The enthusiasm is backed by leadership. Nearly six in ten Indian CEOs and boards view AI as “extremely important” to strategy, outpacing peers in the UK and France
Yet, confidence falters when it comes to demonstrating returns. Only 41% of Indian leaders feel assured in measuring ROI on information security investments, slightly below the global average. Over half expect ROI within a year, underscoring pressure from boards and CFOs for fast results
But the research, based on input from nearly 1,900 senior IT and security leaders worldwide, points to a critical missing link: information readiness. Data complexity, lack of governance, and growing cyber risks are slowing organizations’ ability to scale AI responsibly.
In India, 46% of respondents flagged bias in AI models as a top concern, higher than the global average of 32%, while almost half cited privacy risks. Cybersecurity remains a parallel challenge, with more than half of Indian companies reporting breaches or incidents in the past two years, averaging three each.
Saurabh Saxena, Regional Vice President at OpenText India, framed the issue plainly: “The success of AI will depend on how well organizations address the information readiness gap, simplifying complexity, securing sensitive data, and embedding responsible governance practices.”
For Indian enterprises, the opportunity lies not only in rapid adoption but in building the information and governance backbone to sustain it. Without that, the promise of AI could prove fragile. With it, India could leapfrog ahead in the global AI race.