2 weeks ago
India’s Enterprise AI Investment Soars as Governance Lags
Indian companies are spending much more money on artificial intelligence, or AI.
Their AI investment grew faster than the global average.
AI already uses a significant part of the average company’s technology budget.
Many organisations are using AI agents to help with work.
However, only a small number have allowed AI to run complete workflows on its own.
Few companies have strong systems for testing, auditing and checking AI risks.
Many also struggle with accurate data and older computer systems.
The report says companies need better data, connected systems and rules for supervising AI.
India has introduced national initiatives and guidelines intended to support safer AI development.
India’s enterprise AI investment rose 119 per cent in one year, exceeding the global increase of 110 per cent.
AI represents 16.6 per cent of India’s average IT budget and is projected to reach 21.3 per cent by 2027.
Although 54 per cent of Indian organisations are deploying AI agents, only 11 per cent have adopted autonomous workflows.
Just 22 per cent of Indian enterprises have testing, auditing and risk-assessment processes for AI.
Data accuracy, access and management were identified by 74 per cent of enterprises as the area most needing improvement.
- Who
- ServiceNow and Indian enterprises are the subjects of the report; Kulmeet Bawa commented on the findings.
- What
- India’s enterprise AI investment is growing rapidly, but AI governance, data management and system integration remain limited.
- Where
- India.
- When
- The findings were reported on Tuesday, with AI spending projected through 2027; the AI Governance Guidelines were launched at the February 2026 AI Impact Summit.
- Why
- Companies are increasing AI use, while many still lack testing, auditing, risk-assessment processes, accurate data and integrated legacy systems.
Key facts
- Enterprise AI investment growth
- 119 per cent in one year in India, compared with 110 per cent globally.
- Current AI budget share
- AI accounts for 16.6 per cent of India’s average IT budget.
- Projected 2027 budget share
- AI is projected to account for 21.3 per cent of the average IT budget by 2027.
- AI agent deployment
- 54 per cent of Indian organisations are deploying AI agents.
- Autonomous workflows
- 11 per cent of Indian organisations have moved to autonomous workflows.
- AI governance processes
- 22 per cent of Indian enterprises have testing, auditing and risk-assessment processes.
- Key data challenge
- 74 per cent of Indian enterprises identified data accuracy, access and management as needing the most strengthening.
Quotes
Kulmeet Bawa
Managing Director and Group Vice President, ServiceNow India and SAARC
“India has proven it can commit to AI at a scale few markets can match. The next leap will be defined by how Indian enterprises pair that ambition with governance, connected data and workflows that let AI take on more consequential work”
thehansindia.com
Sources
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