Indian Firms Boost AI Investments: Emphasizing Open Source and Governance
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Synopsis
A recent report indicates that Indian companies are making significant advancements in AI, with 87% enhancing strategies for 2024 and 76% seeing positive ROI. A strong emphasis on open-source tools and responsible governance is evident.
Key Takeaways
- 87% of firms are advancing AI strategies for 2024.
- 76% have seen positive returns on AI investments.
- 93% plan to increase AI investments in 2025.
- 71% are focusing on open-source ecosystems.
- Governance in AI practices is a key concern.
New Delhi, Feb 12 (NationPress) Indian enterprises are making remarkable progress in AI adoption, with 87% of companies surveyed enhancing their AI strategies for 2024, and 76% already witnessing positive returns on their investments, according to a report released on Wednesday.
Organizations are not only investing in AI for the long haul but are increasingly utilizing open-source tools to foster innovation and maximize returns.
An impressive 89% of participating companies have already initiated over 10 AI pilot projects in 2024, as per new research conducted by IT giant IBM.
Looking to the future, 93% of respondents intend to boost their AI investments in 2025, while 71% plan to utilize open-source ecosystems to enhance their AI implementations.
However, governance has surfaced as a significant concern, with companies acknowledging the necessity of responsible AI practices.
Adopting AI responsibly necessitates a structured framework that guarantees fairness, transparency, privacy, and explainability.
The primary challenges in AI adoption include a lack of governance (53%), inadequate AI expertise (51%), difficulties in technology integration (51%), data management issues (41%), and challenges in generating business value (39%).
Despite these hurdles, Indian firms remain devoted to their AI investments.
Approximately 97% of surveyed organizations plan to either increase or sustain their AI spending in 2025.
They are concentrating on specific sectors such as IT operations, where 83% of companies are investing, software coding, prioritized by 56%, and data quality management, emphasized by 55% of businesses to bolster their AI capabilities.
To optimize their AI investments, 71% of companies are prioritizing open-source tools, 70% are focusing on managed cloud services, and 66% are looking to recruit specialized AI talent.
Open-source AI solutions are increasingly significant in India’s AI ecosystem.
Nearly 48% of Indian companies reported that more than half of their AI solutions are reliant on open-source technologies.
“India is swiftly embracing AI with a clear emphasis on driving innovation and ROI. The rising adoption of open-source AI tools is vital for enhancing productivity and financial returns,” stated Sandip Patel, Managing Director of IBM India & South Asia.
He further noted that it is evident this technology must be utilized responsibly to scale its application.
The report also highlighted that larger enterprises are more inclined to depend on open-source solutions for their AI requirements.
