Over 70% of Indian firms integrating AI into their daily operations, shows study

Artificial Intelligence (AI) is swiftly transitioning from theoretical concepts to practical applications within Indian businesses, reveals a fresh study by Rackspace Technology, adding that over 70% of Indian firms integrating AI into their daily operations. The study — The FAIR 2024 AI Research — sheds light on the accelerating pace of AI adoption across various sectors.

The study, which surveyed a wide array of companies in India, indicates that over 70% of businesses are moving beyond mere ideation and are actively integrating AI into their daily operations. This shift signifies a significant leap forward, suggesting that AI is no longer confined to theoretical frameworks but is becoming a tangible reality for many enterprises.

Key findings from the research include the revelation that approximately one-third of the surveyed companies have already successfully integrated AI into their operations. This rapid adoption underscores the growing recognition of AI's potential to enhance business processes and drive innovation.

Moreover, the study highlights a substantial increase in AI investment, with companies planning to double their AI budgets in 2024 compared to the previous year. This surge in investment reflects the growing confidence in AI technologies and their ability to deliver tangible benefits to businesses.

Efficiency emerges as a primary motivation behind AI adoption, with applications such as intelligent search, document processing, and fraud detection being among the most prevalent use cases. These applications demonstrate how AI can streamline processes, improve decision-making, and drive operational efficiency.

Despite the optimism surrounding AI adoption, the study also highlights challenges that businesses face, including cybersecurity concerns and ethical considerations. Moreover, there is a significant shortage of AI talent, prompting companies to invest in formal AI training programs to bridge the skills gap.