15/01/25 | 6:14 pm | AI | Boston Consulting Group

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80% of indian companies recognize AI as a core strategic priority: report

India is leading in artificial intelligence (AI) adoption, with 80% of companies identifying AI as a core strategic priority, surpassing the global average of 75%, according to a report released on Wednesday.

The report, compiled by Boston Consulting Group (BCG), reveals that 69% of Indian companies plan to increase their tech investments in 2025, with one-third of these companies set to allocate over $25 million to AI initiatives.

Furthermore, less than 10% of Indian executives expect a decrease in headcount due to AI-driven automation.

“This reflects the nation’s drive towards a comprehensive digital transformation agenda. In line with this, 69% of Indian firms plan to boost tech investments in 2025, with one-third of these firms dedicating over $25 million to AI efforts,” said Nipun Kalra, India Leader at BCG X.

The report also highlights that 81% of Indian companies recognize the need for improvements in AI-related cybersecurity measures, as AI applications grow more complex.

“Indian companies are also adopting AI for high-impact purposes, including redesigning workflows and developing new business models, reinforcing India’s role as a key player in AI innovation,” Kalra added.

While 76% of Indian executives acknowledge the need for advancements in AI cybersecurity measures, 54% cite regulatory hurdles as a significant barrier to AI adoption.

Globally, only 7% of executives anticipate that AI automation will result in a decrease in headcount.

“In conversations with CEOs, it’s evident that AI is prioritized to boost productivity,” said Christoph Schweizer, CEO of BCG. “Leading AI adopters have figured out how to achieve results by focusing on a strategic set of AI projects, scaling them quickly, transforming key processes, upskilling teams, and consistently measuring the outcomes in terms of both operational and financial impact.”

-IANS

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