Indian Enterprises Poised for Significant AI Investments in FY2024-25, Reveals CMR Study

Indian Enterprises Poised for Significant AI Investments in FY2024-25, Reveals CMR Study

Prabhu Ram, Head - Industry Intelligence Group

Prabhu Ram, Head - Industry Intelligence Group

  • 42% of Indian enterprises plan to spend >INR 50Cr on AI initiatives
  • Generative AI is driving innovation and enhancing user experiences
  • Technical complexity and AI bias hinder AI adoption

13 Dec, 2023 | NEW DELHI. As per a new CMR Next Frontier: Enterprise AI Study 2023 report published by CyberMedia Research (CMR), India’s trusted technology research and advisory firm in India, Indian enterprises are substantially increasing their investments in artificial intelligence (AI). The report findings indicate that fuelled by AI adoption, 93% of enterprises who have leveraged AI, have experienced growth in profit. In FY2024-25, 42% of the surveyed enterprises plan to allocate budgets exceeding 50 Cr for AI.

According to Prabhu Ram, Head – Industry Intelligence Group (IIG), CyberMedia Research (CMR), “Amidst heightened competitive pressures, Indian enterprises are ramping-up their AI capabilities, recognizing that strategic investments in cutting-edge technologies are instrumental in catalyzing distinctive and transformative growth. At CyberMedia Research (CMR), our ongoing research around AI reveal a significant correlation between AI adoption and business profitability. As enterprises gear up to allocate substantial budgets, the increasing role of AI, especially generative AI, in shaping customer experiences and driving data-driven decision-making as competitive differentiators becomes evident.”

The CMR Next Frontier: Enterprise AI Study 2023 conducted through comprehensive primary and secondary research methodologies, involved interactions with 400 leading Indian IT decision-makers and specialists.

Some key insights are highlighted below:

1. Dominant AI Use Cases:

  • Top Priorities: Customer services (90%), marketing and sales (65%), and predictive maintenance (64%) emerge as the top AI use cases for enterprises.
  • AI is revolutionizing how enterprises engage with their customers, ensuring efficiency, responsiveness, and customized experiences that align with individual preferences and requirements.

2. Generative AI’s Growing Role:

  • Generative AI has firmly established its presence in the enterprise landscape. An overwhelming majority of those surveyed reported actively using generative AI.
  • Development Areas: Generative AI is significantly contributing to the development of customer-centric products (60%), data-driven decision-making (59%), and improved customer services (47%).

4. Challenges in AI Deployment:

  • Major Hurdles: Technical complexity (91%), AI bias (67%), and security and privacy of sensitive data (59%) are the primary challenges faced by enterprises in AI deployment.
  • While AI adoption is on the rise, these challenges underscore the need for strategic approaches to overcome roadblocks.

Overall, the report finds that AI adoption is rapidly increasing in India, and enterprises are seeing significant benefits from its use.

According to Anil Chopra – VP-Research and Consulting, CyberMedia Research (CMR), “As we look ahead to 2024 and beyond, AI is set to become increasingly pervasive in enterprises. Early adopters will tap into the full potential of both Traditional and Generative AI. However, for most, their success will hinge on embracing and customizing AI to their specific needs while being aware of the inherent risks. At CyberMedia Research (CMR), we believe that the key to unlocking AI’s transformative potential will be responsible AI adoption, guided by a proactive and effective oversight.”

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About the Survey

The CMR Next Frontier, a series from CyberMedia Research (CMR), unveils primary insights from leading Indian enterprises on their journey towards digital acceleration through enterprise IT adoption.

The CMR Next Frontier: Enterprise AI study covered 400 IT Heads / Decision Makers of organization spread over 298 large (> 1000 Cr) and 102 medium (500-1000 Cr) enterprises, cutting across top eight cities of India, including Delhi, Mumbai, Kolkata, Bengaluru, Chennai, Hyderabad, Ahmedabad, and Pune. The study covered all major verticals such as Manufacturing, BFSI, IT / ITeS, Healthcare, Retail, and Government etc. The primary survey was conducted in H2 2023.

For results based on a randomly chosen sample of this size, there is 95% confidence that the results have a statistical precision of plus or minus 5% of what they would be if the entire population had been surveyed.