In the past few decades, artificial intelligence (AI) has shifted from being a futuristic concept into an integral part of our daily lives. AI has a significant impact on Industries and work culture. However In India, AI faces significant challenges in gaining widespread adoption.
A recent report by Cisco 2024 AI Readiness Index report, only 18% of companies are fully prepared to deploy and integrate AI-powered technologies into their operations in India.
This percentage has comparatively came down from 20% in the past year.
According to Dave West, President APJC (Asia Pacific, Japan and Greater China) , “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”
“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”.
The Index is based on a double-blind survey of 3,660 senior business leaders from organizations with approx. 500 employees across 14 markets in the region of APJC.
This AI readiness index was based on some pillars which are- strategy, infrastructure, data, governance, talent, and culture.
The reports also stated that the companies are now setting aside a significant amount of their resources towards AI, with 57% indicating that between 10% and 30% of their IT budgets are allocated for AI investments.
AI investments have primarily concentrated on three key strategic areas: cybersecurity (with 47% of companies at full or advanced deployment), data analysis (44%), and data management (42%). These efforts aim to enhance the process efficiency and boost the profitability.
However half of the respondents also said that they hadn’t seen any profit or mostly negative returns as per their expectations in enhancing, supporting, or automating existing processes and operations.
Reason for AI readiness decline in India.
The reason may be that one of the biggest challenges lies in areas such as compute power, data center network performance, and cybersecurity. Only 21% of organizations have the necessary GPUs to meet both current and future AI demands, while 36% possess the capabilities to protect data in AI models through end-to-end encryption, security audits, continuous monitoring, and immediate threat response.
Additionally, there is an increasing pressure from top management to implement AI technologies. Nearly half (48%) of companies reported that the CEO and leadership team are driving AI deployment, closely followed by the board of directors (39%).
One more reason is there is also a significant shortage of skilled AI talent to lead these initiatives.Companies mentioned that they searching for skilled professionals has become a challenge for them.
Anupam Trehan, VP, 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.”
To improve AI readiness and to increase the AI deployment, Indian companies must focus on investing in upgrading infrastructure, particularly in areas like compute power and data security, will be crucial for seamless AI integration. Companies should also focus on building a skilled workforce through training programs to address the skilledshortage of personnel.
