As AI becomes a central pillar in enterprise strategy, Chief Data Officers (CDOs) and Chief Analytics Officers (CAOs) are playing a larger role in shaping investments, security frameworks, and data governance policies
As artificial intelligence (AI) reshapes global industries, India is witnessing a notable acceleration in the adoption of Generative AI (GenAI), according to new research released today by Qlik®, a global leader in data integration, analytics, and AI. The report, prepared by International Data Corporation (IDC) and co-sponsored by Amazon Web Services (AWS), forecasts AI spending in India to rise sharply, reaching USD 9.2 billion by 2028, with an annual growth rate of 35 per cent.
Titled The AI Pivot: Accelerating GenAI Adoption and Unlocking Data-Driven Business Value, the report identifies India as a frontrunner in the Asia Pacific (APAC) region for GenAI initiatives, while also spotlighting significant challenges around data quality, governance, and infrastructure needed for scaling secure AI applications.
India’s AI Growth Story: Investment Meets Caution
India leads APAC in GenAI interest, with 36 per cent of enterprises currently using GenAI and another 46 per cent planning investments over the next 12 to 24 months. Yet, despite the enthusiasm, only 22 per cent of Indian organisations report measurable improvements from their AI and machine learning (ML) initiatives.
This mixed picture highlights both opportunity and caution. While India is at par with Australia and New Zealand in terms of organisations with advanced AI capabilities (20 per cent), it still lags behind ASEAN countries, where 27 per cent of organisations report maturity in AI deployment.
Interestingly, Indian C-suite leaders remain optimistic, expecting up to four times return on investment (ROI) from AI projects within a year—reflecting a strong belief in the technology’s potential to deliver business value.
Security & Data Quality Take Centre Stage
Despite strong momentum, Indian organisations are contending with data quality issues and rising concerns over AI-related bias and security risks. Over half (54 per cent) of the surveyed organisations cite poor data quality as a key hurdle—higher than in Australia (40 per cent), ASEAN (40 per cent), and the APAC average (50.4 per cent).
The report also reveals that 62 per cent of Indian organisations recognise the need to strengthen data governance and privacy policies. Additionally, 28 per cent are grappling with AI data bias, a figure that exceeds both ASEAN (21.8 per cent) and Australia (20 per cent).
“GenAI is transforming industries in India—from compliance in retail to fraud prevention in finance and predictive maintenance in manufacturing,” said Deepika Giri, Associate Vice President, Big Data Analytics, Blockchain, and Web3 Research, IDC Asia/Pacific. “But to unlock its full potential, organisations must prioritise trusted data, robust governance, and infrastructure readiness to scale AI effectively and responsibly.”
Cloud Adoption Drives GenAI Scaling Efforts
Cloud migration continues to play a vital role in powering GenAI growth in India. Over 51 per cent of Indian enterprises already host their AI solutions in the cloud, and 80 per cent see cloud migration as essential to achieving their AI goals.
India now leads ASEAN in public cloud adoption, with 40 per cent of businesses using one or more public cloud providers. Hybrid models are also gaining ground, with 30 per cent of Indian firms preferring a hybrid cloud setup—significantly higher than Australia’s 19 per cent.
“Indian organisations see cloud adoption as a critical step toward AI success,” said Varun Babbar, Vice President, India, Qlik. “To scale AI-driven innovation, businesses need a strong, scalable data infrastructure that supports high-performance AI applications. At Qlik, we help organisations enhance data integrity, reduce bias, and strengthen compliance frameworks—ensuring AI delivers meaningful and lasting business value.”
Indian Oil’s Data-Driven Transformation
One standout example of AI’s real-world impact is Indian Oil Corporation Limited (IndianOil), one of India’s largest public sector companies. Using Qlik’s analytics capabilities as part of its i-DRIVE initiative, IndianOil is tracking more than 3,000 key performance indicators (KPIs) and empowering 10,000 users with self-service analytics.
By integrating AI and ML into its systems, the energy giant is enhancing predictive maintenance, streamlining supply chain operations, and improving overall agility. With a strong emphasis on data integrity and governance, IndianOil is setting a benchmark for secure and sustainable digital transformation in India’s industrial sector.
Shaping India’s AI-First Future
As AI becomes a central pillar in enterprise strategy, Chief Data Officers (CDOs) and Chief Analytics Officers (CAOs) are playing a larger role in shaping investments, security frameworks, and data governance policies. Organisations that equip their leadership teams with strong, AI-ready data strategies and focus on secure infrastructure will be better positioned to compete in India’s fast-evolving digital economy.
The IDC-Qlik report reinforces that while India is poised for an AI-led future, success will depend on solving critical challenges around data quality, cloud infrastructure, and governance—ensuring that AI delivers not just innovation, but sustainable, secure business outcomes.
