India – Only 18% of organisations in India are fully prepared to deploy and leverage AI-powered technologies, marking a decline from 26% a year ago, a report from Cisco revealed.
The report found that all companies in India have increased urgency to deploy AI, driven mainly by CEOs and leadership teams. Additionally, 57% of companies are allocating 10% to 30% of their IT budgets to AI deployments.
Despite significant AI investments in areas like cybersecurity, IT infrastructure, and data analytics, many companies report that the returns are falling short of expectations.
According to the findings of the report, there is a decline in AI readiness across all pillars, with infrastructure identified as a key pain point, particularly in compute, data centre performance, and cybersecurity.
Only 21% of organisations have the necessary GPUs to meet current and future AI demands, while 36% have the capabilities to secure data in AI models with end-to-end encryption, security audits, continuous monitoring, and real-time threat response.
Despite prioritising AI investments, companies in India are also reporting underwhelming results. AI spending over the past year focused on cybersecurity (47% at advanced deployment), data analysis (44%), and data management (42%). However, half of respondents reported either no gains or returns falling short of expectations in enhancing, automating, or optimising operations.
With time pressing, Indian businesses are ramping up efforts and investments to embrace AI transformation. According to the report, 39% plan to allocate over 40% of their IT budgets to AI in the next 4–5 years, up from just 7% today.
Companies further recognise the need to strengthen AI readiness, with 55% in India prioritising scalability, flexibility, and manageability in IT infrastructure—highlighting key gaps that must be addressed for effective AI adoption.
“As companies accelerate their AI journeys, it’s critical they adopt a comprehensive approach to implementation and connect the dots to link AI ambition with readiness,” said Dave West, president for APJC at Cisco.
“This year’s AI Readiness Index reveals that to fully leverage the potential of AI, companies need a modern digital infrastructure capable of meeting evolving power needs and network latency requirements from growing AI workloads. This must be supported with the right visibility to achieve their business objectives,” West added.
Despite challenges unique to each pillar, the report highlights a common issue: a shortage of skilled talent. Companies identified this as the top challenge across infrastructure, data, and governance, underscoring the vital need for professionals to lead AI initiatives.
Anupam Trehan, VP of people and communities APJC at Cisco, said, “As the race to adopt AI picks up pace, talent will be a key differentiator for companies. There is already a shortage of skilled talent across various aspects of AI. This means companies will need to invest in their existing talent pool to meet the growing demand. At the same time, it is crucial that all stakeholders—the private and public sectors, educational institutions, and governments—work together to develop local talent so that the entire ecosystem can benefit from the immense potential that AI offers.”
