Are Indian Companies Rapidly Scaling AI in Response to Governance and Security Needs?

Click to start listening
Are Indian Companies Rapidly Scaling AI in Response to Governance and Security Needs?

Synopsis

As Indian companies embrace AI at an unprecedented rate, a recent report indicates that while the technology is crucial for various sectors, the governance surrounding it fails to keep pace. This gap poses risks to accountability and security. Can India harness its AI potential effectively?

Key Takeaways

  • AI adoption is growing rapidly in India.
  • Governance frameworks are lagging behind.
  • Only 15% of firms have comprehensive AI deployment.
  • Investment in governance is crucial for long-term success.
  • Security measures throughout the AI lifecycle are vital.

New Delhi, Nov 3 (NationPress) Indian corporations are swiftly advancing in the realm of AI, driven by global trends, competitive pressures, and breakthroughs in GenAI technologies, as revealed in a recent report. AI applications now span customer engagement, operational optimization, and essential processes across various sectors.

However, the adoption of AI remains uneven, with only 15 percent of organizations achieving comprehensive enterprise-wide deployment.

"Despite the ongoing expansion of AI, governance is not evolving at the same speed. In numerous organizations, the AI infrastructure is growing quicker than the necessary governance, security, and ethical safeguards, resulting in significant gaps in accountability and risk management," stated Alvarez & Marsal (A&M), a global professional services firm, in its findings.

Furthermore, governance maturity is still limited, even as usage increases.

While 60 percent of organizations have established basic governance or acceptable-use policies, only 19 percent have conducted thorough risk assessments, and 81 percent lack full visibility into the monitoring and governance of their AI systems.

With numerous AI initiatives developing in isolation, accountability and standards vary significantly, particularly when third-party and in-house models coexist.

The report underscores the necessity for integrated, organization-wide governance frameworks that promote transparency, oversight, and clear role ownership.

“AI is now more deeply integrated into business processes and decision-making systems than ever before. India’s AI potential is considerable, but its long-term benefits hinge on how effectively organizations govern and secure the systems they implement," remarked Dhruv Phophalia, MD and India Lead - Disputes and Investigations, Alvarez & Marsal.

Those who invest early in these foundational aspects will be optimally positioned to realize the full economic and competitive advantages of AI, he added.

According to the report, while the principles of responsible AI are widely recognized, their practical application remains limited.

Less than 20 percent of organizations have implemented mechanisms for explainability, bias detection, or fairness, and 60 percent do not have any formal processes to validate model integrity.

Data governance presents similar deficiencies, with only 26 percent having integrated data masking and PII scanning in their AI workflows, and 60 percent performing no structured validation of datasets.

The report also pointed out that as increasingly complex AI models are deployed, security throughout the AI lifecycle will become critical.

While 52 percent of enterprises maintain secure development environments with basic controls, less than 30 percent engage in penetration testing or red teaming, and only 19 percent have measures in place to detect data poisoning during model training.

Point of View

I believe that while the rapid scaling of AI by Indian firms is promising, it necessitates an urgent reevaluation of governance structures. The potential for AI is vast, but without robust safeguards, the risks can outweigh the benefits. We must advocate for comprehensive frameworks that ensure responsible AI deployment.
NationPress
03/12/2025

Frequently Asked Questions

What is the current state of AI adoption in India?
AI adoption in India is growing swiftly; however, only 15% of organizations have implemented enterprise-wide AI solutions.
What governance challenges do organizations face with AI?
Many organizations struggle with governance as AI systems expand faster than the necessary safeguards, leading to accountability gaps.
How many organizations conduct risk assessments for AI?
Only 19% of organizations have conducted detailed risk assessments for their AI systems.
What is the significance of responsible AI principles?
Responsible AI principles are critical for ensuring ethical use of AI, but less than 20% of organizations have implemented related mechanisms.
What security measures are necessary for AI models?
Security across the AI lifecycle is essential, yet fewer than 30% of enterprises conduct penetration testing or safeguard against data poisoning.
Nation Press