India’s enterprise sector is ramping up AI investment in a big way, with spending up about 37% from last year. According to the Kyndryl Readiness Report 2025, 91% of organisations in India now believe AI will reshape jobs within the next 12 months.
However, plenty of challenges remain. Around 63% of firms say they’re under strong pressure to prove the return on investment (ROI) from their AI projects. Even more troubling, 75% admit their innovation efforts hit a wall after proof-of-concept.
Why the gap? Many companies still struggle with old technology stacks — roughly 69% cite foundational IT and infrastructure issues. On the talent side, over 50% of Indian leaders say staff lack the right tech skills for AI. Data and governance are also major concerns: 81% see cloud/data sovereignty risks, and 55% are re-evaluating data governance frameworks.
The takeaway: India’s AI wave is real and rapid, but the real value will only follow if companies fix infrastructure, upskill staff, and tie AI efforts to business goals. The dream of transformation is here — the execution, however, still needs work.
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