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AI Spending in India Projected to Reach $9.2 Billion by 2028

Published 3 days ago3 minute read
AI Spending in India Projected to Reach $9.2 Billion by 2028

New Delhi, April 15 (SocialNews.XYZ) - Artificial intelligence (AI) spending in India is poised for substantial growth, projected to increase annually by 35 percent and reach $9.2 billion by 2028, according to a recent report. This surge underscores the critical need for enhanced data quality, robust governance frameworks, and seamless cloud migration strategies to fully leverage AI's transformative potential.

The report, released by Qlik in conjunction with a new research paper by International Data Corporation (IDC), highlights that while approximately 51 percent of Indian enterprises currently host AI solutions in the cloud, persistent challenges related to data quality remain a significant hurdle. Specifically, 54 percent of Indian organizations identified data quality as a major impediment to AI adoption, surpassing rates in Australia (40 percent), ASEAN (40 percent), and the broader APAC region (50.4 percent).

Furthermore, the report revealed that 62 percent of Indian organizations recognize the imperative to improve data governance and privacy policies. Additionally, 28 percent of these organizations grapple with AI data bias, exceeding figures in ASEAN (21.8 percent) and Australia (20 percent). These findings emphasize the necessity for Indian enterprises to prioritize ethical considerations and fairness in AI deployments.

In response to these challenges, Indian enterprises are proactively investing in data integration technologies, machine learning (ML) deployment platforms, and advanced analytics capabilities to establish comprehensive and AI-ready data strategies. Strengthening data integrity, ensuring transparency, and adhering to compliance standards are identified as key factors for successful AI adoption across various sectors.

Varun Babbar, Vice President, India, Qlik, emphasized the pivotal role of cloud adoption in fostering AI success. He stated, "Indian organizations see cloud adoption as a critical step toward AI success. To scale AI-driven innovation, businesses need a strong, scalable data infrastructure that supports high-performance AI applications."

The ‘IDC InfoBrief’ report also sheds light on the growing adoption of Generative AI (GenAI) among Indian enterprises. Approximately 36 percent of enterprises are currently utilizing GenAI, with an additional 46 percent planning investments in this technology within the next 12-24 months. While India is on par with Australia and New Zealand, with 20 percent of organizations possessing advanced AI capabilities, it lags slightly behind ASEAN, where 27 percent have reached this stage.

Deepika Giri, AVP, Big Data Analytics, Blockchain, and Web3 Research, IDC Asia/Pacific, commented on the transformative impact of GenAI across industries in India. She noted, "GenAI is transforming industries in India — from compliance in retail to fraud prevention in finance and predictive maintenance in manufacturing." However, she cautioned that to unlock its full potential, organizations must prioritize trusted data, robust governance, and infrastructure readiness to scale AI effectively and responsibly.

Source: IANS

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