80 pc of Indian companies find AI a core strategic priority: Report

NEW DELHI: India has positioned itself as a leader in artificial intelligence (AI) adoption, with 80 per cent of companies identifying AI as a core strategic priority -- well above the global average of 75 per cent, according to a report on Wednesday.

About 69 per cent of Indian companies plan to increase tech investments in 2025, with one-third allocating over $25 million to AI initiatives, said the report by Boston Consulting Group (BCG).

Also, less than 10 per cent of Indian executives expect a decrease in headcount due to AI-driven automation, it added.

“This aligns with the nation's ambitious digital transformation agenda. To add to this context, 69 per cent of Indian firms plan to increase their tech investments in 2025, with one-third committing over $25 million to AI initiatives,” said Nipun Kalra, India Leader, BCG X, BCG.

Around 81 per cent of Indian companies acknowledge the need for substantial improvements in AI-related cybersecurity measures, which is critical given the increasing complexity of AI applications.

“Interestingly, Indian companies are also embracing AI for high-impact applications, with a substantial focus on reshaping workflows and inventing new business models, positioning India as a driver of innovation in this space,” said Kalra.

While 76 per cent of Indian executives acknowledge significant improvements are needed in AI cybersecurity measures, 54 per cent cite regulatory challenges as a major factor slowing AI adoption.

Globally, only 7 per cent of executives anticipate that AI automation will lead to an overall decrease in headcount.

“In my discussions with CEOs, it’s clear they are prioritising AI to drive productivity,” said Christoph Schweizer, CEO of BCG.

“Leading AI adopters have cracked the code on how to achieve impact by focusing on a targeted set of AI initiatives, scaling them rapidly, transforming core processes, upskilling their teams, and systematically measuring operational and financial returns,” Schweizer said.