AI Advancements: Indian Enterprises Move from Pilots to Performance

Nearly half of Indian enterprises have progressed from AI pilots to active deployment, with 47% reporting actual generative AI use cases. Despite optimism, over 95% of firms keep AI budgets below 20% of IT spending. Businesses are now focusing on rapid deployment and external collaborations to optimize AI capabilities.

Nearly half of Indian enterprises have moved beyond AI pilots, with 47% now actively deploying multiple generative AI applications, according to a report by EY-CII. However, despite a strong belief in AI's potential, investment levels remain conservative, with over 95% of firms allocating less than 20% of their IT budgets to AI and ML.

The report 'The AIdea of India: Outlook 2026', based on a survey of 200 Indian organizations across 20 industries, highlights that 91% of decision-makers prioritize rapid deployment in their AI strategies. Future investments will focus on operations, customer service, and marketing, aiming to embed AI within functions that directly impact performance.

Despite growing optimism, most organizations invest cautiously, with only 4% exceeding AI budgetary limits. The report suggests a new five-dimensional ROI model to measure AI success beyond cost reduction, encompassing time saved, efficiency, business upside, strategic differentiation, and resilience. Moreover, 60% of enterprises are partnering with startups and OEMs, adopting hybrid models to expedite AI deployment.

(With inputs from agencies.)