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Only 25% of the Indian enterprises have deployed AI solutions even as majority of business leaders believed that AI will disrupt their businesses within the next three years.
According to a joint survey conducted by NASSCOM and EY, around 60% of the corporate leaders in India agreed to the growing importance of AI and the need to adopt it. Although 70% enterprises that have deployed AI said to have achieved measurable benefits, the AI adoption rate is still low in the country.
Challenges regarding the new technology and data was the top factor that restricted the companies to implement AI.
Their concerns include low digitization, low ecosystem maturity, disparate datasets, and inadequate training data. Most of the respondents considered low digitization as the biggest challenge.
Inability to quantify the return on investment was the next major roadblock that is holding back the companies in AI-led decision making. The corporates believed that there is a lack of use cases to explain the benefits of AI.
The corporate leaders considered shortage of talent and changes in work culture as other prime factors that will go against the adoption of AI as they believed there can be strong resistance from the employees.
Data security, privacy, brand reputation, and safety of people and equipment were the other important factors that pose a challenge to deploy AI.
Where companies are using AI
The companies that deployed AI considered operational efficiency, customer experience and revenue growth as the top-three reasons for implementing AI.
The survey focused on four key sectors, of which BFSI takes the lead in AI adoption with 36% organizations leveraging AI, followed by Retail, Healthcare and Agriculture.
BFSI sector sought AI solution in the areas of customer churn prediction, fraud detection and personalised financial consulting.
Customer segmentation, demand forecasting and price management were the areas for AI deployment in Retail.
Healthcare segment adopted AI in personalized treatment plan, monitoring of chronic conditions and accelerated drug development.
Crop and livestock disease management, precision farming, grading and sorting were the prime focus areas for AI in the agriculture sector.
NASSCOM and EY recorded responses from over 500+ CXOs who participated in their survey conducted during the period from January to March this year. The respondents were largely the CEOs and CIOs from large and mid-sized companies across India. They also conducted interviews with industry leaders representing multiple sectors.
