According to a report released on Tuesday, artificial intelligence (AI) spending in India is projected to grow at an annual rate of 35 percent, reaching $9.2 billion by 2028. The report, conducted by Qlik in collaboration with the International Data Corporation (IDC), underscores the importance of enhancing data quality, governance, and cloud migration to fully leverage AI's potential.

The study reveals that while 51 percent of Indian enterprises currently host AI solutions in the cloud, data quality remains a significant impediment. Specifically, 54 percent of Indian organizations cited data quality as a major challenge, surpassing Australia (40 percent), ASEAN (40 percent), and the Asia-Pacific (APAC) average of 50.4 percent. The report also highlighted that 62 percent of Indian organizations recognize the need to improve data governance and privacy policies. Furthermore, 28 percent of these organizations struggle with AI data bias, exceeding ASEAN (21.8 percent) and Australia (20 percent).

To address these challenges, Indian enterprises are increasingly investing in data integration, machine learning (ML) deployment platforms, and analytics to establish AI-ready data strategies. The report emphasizes that strengthening data integrity, transparency, and compliance is crucial for successful AI adoption.

Varun Babbar, Vice President, India, Qlik, stated that Indian organizations view cloud adoption as a critical step toward AI success. He emphasized that businesses need a robust, scalable data infrastructure to support high-performance AI applications in order to scale AI-driven innovation.

The 'IDC InfoBrief' report also found that 36 percent of enterprises are currently utilizing Generative AI (GenAI), with an additional 46 percent planning investments in this technology within the next 12-24 months. India is on par with Australia and New Zealand, with 20 percent of organizations possessing advanced AI capabilities, although it lags behind ASEAN, where 27 percent have reached this stage.

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