Artificial Intelligence (AI) enhances decision-making capabilities by 54%, and Indian businesses are rapidly scaling up AI initiatives, according to a new report by global consulting firm Protiviti and the Confederation of Indian Industry (CII).
The report, titled ‘AI Trends and Future Impact: Industry Adoption and Insights,’ was released at the 4th edition of the CII International Conference on Artificial Intelligence – The AI India Show 2025.
Expanding AI Adoption in Indian Enterprises
More than half of Indian enterprises plan to accelerate AI adoption, with 51% confirming immediate expansion plans and another 32% opting for a gradual approach. Additionally, 59% of enterprises feel prepared for AI adoption, while 38% are still in early readiness stages.
Governance Remains a Challenge
AI governance remains a weak spot, with only 23% of enterprises implementing AI ethics and governance frameworks. However, over 40% of enterprises are open to external AI audits and bias assessments to ensure responsible AI use.
Key Drivers of AI Investments
Indian businesses are investing in AI to achieve three primary objectives:
- Increasing operational efficiency
- Enhancing customer experience
- Improving decision-making capabilities
Predictive AI, Chatbots, and Machine Learning are currently the most implemented AI technologies. Meanwhile, Generative AI and Agentic AI are gaining traction for future investments.
Barriers to AI Adoption
Despite the enthusiasm, businesses face several obstacles:
- Ethical concerns, bias, and legal compliance risks
- Shortage of skilled AI professionals
- High implementation costs
- Data privacy and governance issues
Yet, 65-70% of organizations feel prepared in terms of data, strategy, and culture to integrate AI into their operations.
Leadership and Governance in AI Implementation
AI leadership is still evolving. While 36% of enterprises believe a Chief AI Officer (CAIO) should lead AI initiatives, 18% prefer a shared governance approach. Encouragingly, over 40% of businesses welcome external AI audits to enhance accountability and transparency.
Industry Experts Weigh In
Amit Lundia, Managing Director, Protiviti said, “AI is reshaping industries, and Indian businesses are integrating AI at an accelerated pace. Over 74% of executives consider Generative AI critical, and more than 80% are implementing auditability measures such as bias audits and explainable AI tools”.
Sandeep Gupta, Managing Director, Protiviti India highlighted, “AI is driving innovation across industries. Our collaboration with CII on this report provides key insights into India’s evolving AI landscape”.
Future Outlook
Operational efficiency remains the primary driver of AI adoption, followed by customer experience and decision-making improvements. In the next five years, businesses will focus more on cost optimization, risk management, and innovation.
However, infrastructure, governance, and costs remain major concerns, with 55-60% of executives acknowledging limited preparedness in these areas. Meanwhile, 74% of executives are exploring Generative AI and Large Language Models (LLMs), with the financial services industry leading at 85% adoption.
As reported by tribuneindia.com, as AI adoption accelerates, businesses must address governance challenges to ensure responsible and sustainable implementation.
