76% of Indian Organizations Bet Big on AI/ML
- 72% prioritize discovering insights to improve decision-making, 74% focus on innovating or improving products and services, 77% aim to enhance customer experience and engagement.
- AI/ML adoption is rapidly expanding across functions, with IT operations leading at 21%, followed by customer service and engagement at 19%, and sales and marketing at 18%
The 2nd Annual CIO&Leader State of Enterprise Technology (SET) Survey, conducted in partnership with research firm BM Nxt, reveals a significant surge in spending on AI and machine learning (ML) among Indian enterprises. With 76% of organizations planning to invest more in AI/ML projects, the survey underscores the growing recognition of these technologies as pivotal drivers of competitive advantage and operational excellence.
The study draws on insights from more than 350 CIOs and IT decision-makers in India’s top enterprises, and serves as a crucial indicator of technology trends in Indian companies. The study, based on a survey combining both qualitative and quantitative approaches, was conducted between May to July 2024. The survey results give a comprehensive overview of the state of deployment of various technologies, organizational challenges, and future plans regarding Cloud Infrastructure, Cyber Security, Data Analytics, and Artificial Intelligence (AI).
The survey indicates that more than one-third (37%) of enterprises expect a significant increase in their AI and ML budgets in 2024, up from 25% in 2023. Meanwhile, 39% plan to somewhat increase their spending, compared with 43% in the previous year.
“This upward trend in AI and ML investments indicates a significant commitment to leveraging the transformative potential of these cutting-edge technologies,” says R. Giridhar, Research Head and Group Editor at 9.9 Group. “The move towards budget increases not only underscores growing confidence in the impact of AI and ML on business operations but also highlights their potential for propelling innovation and competitiveness in today’s dynamic marketplace,” he adds.
Deepak Kumar, Founder Analyst & Chief Research Officer at BM Nxt, notes, “Enterprises are adopting a balanced approach towards acquiring AI solutions by combining external expertise with internal capabilities. This strategic blend is essential for quickly leveraging the full potential of AI and ML.”
The survey also highlights the primary business outcomes expected from AI and ML projects. These include discovering useful insights to improve decision-making (72% deeming it very important), innovating or improving products and services (74%), and enhancing customer experience and engagement (77%). “AI and ML are not just enhancing existing processes but are fundamentally transforming how businesses operate and compete. The significant investments in these technologies signal a shift towards more data-driven decision-making and a greater focus on leveraging AI for strategic advantage. This is a clear indication that Indian enterprises are positioning themselves at the forefront of technological innovation,” says Jatinder Singh, Executive Editor, CIO&Leader.
The adoption of AI and ML across organizational functions is expanding rapidly. IT operations lead with 21% of organizations reporting wider deployment across multiple processes, followed by customer services and engagement at 19%, and sales and marketing at 18%. This trend highlights the integration of AI and ML into core business functions.
AI in cybersecurity operations shows robust adoption rates, with 23% reporting extensive and 35% moderate use of AI. With only 6% having no plans for AI adoption, resistance to AI in cybersecurity is minimal. As AI’s ROI and effectiveness in preventing breaches and reducing security incidents grows, wider adoption is expected.
AI-readiness has become a critical decision factor in acquiring IT solutions for the enterprise. Data and analytics solutions with AI capabilities top the list, with 72% of organizations deeming AI-readiness as highly likely to influence their decisions, followed by cloud platforms and solutions at 62%. “This reflects the high importance accorded to data processing and cloud management capabilities,” explains Singh.
Additional quotes:
“AI and ML are revolutionizing how enterprises approach data and analytics, cloud and infrastructure, and IT security. By harnessing the power of AI-driven insights, CIOs are not only uncovering valuable information that enhances decision-making but also transforming entire approaches to data management and predictive analytics. This integration is elevating capabilities and enabling more agile and informed business strategies.”
- Deepak Kumar, Founder Analyst & Chief Research Officer at BM Nxt
“As enterprises continue to embrace AI, there’s a noticeable shift towards purchasing AI solutions as packaged offerings. The ‘most likely’ category has risen from 25% to 29%, while the ‘unlikely’ category has dropped from 27% to 20%. This trend reflects a growing acceptance of ready-made AI solutions that can be seamlessly integrated into existing systems, accelerating the adoption of AI across industries.”
- R. Giridhar, Research Head and Group Editor at 9.9 Group
About CIO&Leader
Now in its 25th year, CIO&Leader is India’s leading platform for enterprise technology leaders and decision-makers. It serves as a catalyst for the exchange of well-informed perspectives and insights and fosters discussions on cutting-edge trends, technology implementations and use cases, IT business strategies, leadership, and innovation between CIOs and other key stakeholders.
About BM Nxt
BM Nxt specializes in meeting the research-based information, communication, and marketing needs of decision-makers and planners in the technology sector. It serves both suppliers and users of technology products and services by providing comprehensive insights and strategies that drive informed decisions and effective planning.