Projected Growth of AI Spending in India and Its Implications
According to a recent report by Qlik based on research conducted by the International Data Corporation (IDC), artificial intelligence (AI) expenditures in India are anticipated to experience an impressive annual growth rate of 35%, culminating in an estimated total of $9.2 billion by 2028.
Key Factors Influencing AI Growth
This rapid expansion underscores the importance of enhancing data quality, robust governance frameworks, and cloud migration strategies to fully harness the power of AI. Currently, around 51% of Indian enterprises have adopted AI solutions hosted in the cloud; however, maintaining high-quality data continues to be a significant hurdle.
Data Quality Challenges in India
The report further identifies data quality as a primary challenge, with approximately 54% of Indian organizations acknowledging it as a barrier—placing it above the reported figures from Australia (40%), ASEAN (40%), and the broader APAC average (50.4%).
Governance and Data Privacy Concerns
In addition, findings reveal that 62% of Indian businesses recognize the imperative need to improve their data governance and privacy policies. Notably, the issue of AI data bias affects 28% of organizations, outpacing the challenges faced in ASEAN (21.8%) and Australia (20%).
Strategies to Address Challenges
In response to these obstacles, Indian enterprises are channeling investments into data integration, machine learning (ML) deployment platforms, and advanced analytics in order to develop AI-ready data strategies. Ensuring data integrity, transparency, and compliance is essential for the successful implementation of AI technologies.
Cloud Adoption as a Catalyst for AI Success
“Indian organisations see cloud adoption as a critical step toward AI success,” emphasized Varun Babbar, Vice President of Qlik in India. “To scale AI-driven innovation, businesses need a strong, scalable data infrastructure that supports high-performance AI applications.”
Generative AI Adoption Trends
The IDC report notes that 36% of enterprises in India are already utilizing Generative AI, with an additional 46% planning to invest in this technology within the next 12 to 24 months. The country stands on par with Australia and New Zealand, as 20% of organizations possess advanced AI capabilities, although it trails ASEAN, where the figure is 27%.
The Transformative Impact of AI
“GenAI is transforming industries in India—ranging from compliance in retail to fraud prevention in finance and predictive maintenance in manufacturing,” stated Deepika Giri, AVP of Big Data Analytics, Blockchain, and Web3 Research at IDC Asia/Pacific. “To unlock its full potential, organizations must prioritize trusted data, robust governance, and infrastructure readiness to scale AI effectively and responsibly.”
Conclusion
As AI spending continues to rise in India, focusing on improving data quality, governance, and cloud capabilities will be pivotal for organizations to leverage AI innovations successfully. The journey toward unlocking AI’s full potential relies heavily on establishing strong foundations in data management and infrastructure readiness.
