Friday, June 14, 2024

42% Indian firms aim to spend over Rs 50cr on AI initiatives in FY25: Report

As Indian enterprises are substantially increasing their investments in artificial intelligence (AI), a new report on Wednesday said that about 42 per cent of enterprises plan to spend more than Rs 50 crore on AI initiatives in FY2024-25.

According to CyberMedia Research (CMR), 93 per cent of enterprises in India that have leveraged AI have experienced growth in profit.

“As enterprises gear up to allocate substantial budgets, the increasing role of AI, especially generative AI, in shaping customer experiences and driving data-driven decision-making as competitive differentiators become evident,” said Prabhu Ram, Head – Industry Intelligence Group (IIG), CMR.

Moreover, the report found that customer services (90 per cent), marketing and sales (65 per cent), and predictive maintenance (64 per cent) emerge as the top AI use cases for enterprises.

Generative AI has firmly established its presence in the enterprise landscape, with the majority reported actively using generative AI.

Generative AI is significantly contributing to the development of customer-centric products (60 per cent), data-driven decision-making (59 per cent), and improved customer services (47 per cent).

The primary challenges faced by enterprises in AI deployment include technical complexity (91 per cent), AI bias (67 per cent), and security and privacy of sensitive data (59 per cent), according to the report.

“As we look ahead to 2024 and beyond, AI is set to become increasingly pervasive in enterprises. Early adopters will tap into the full potential of both Traditional and Generative AI. However, for most, their success will hinge on embracing and customising AI to their specific needs while being aware of the inherent risks,” said Anil Chopra – VP-Research and Consulting, CMR.

Overall, the report found that AI adoption is rapidly increasing in India, and enterprises are seeing significant benefits from its use.

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