Indian Organisations Accelerate Gen AI Adoption, But Poor Data Quality Remains A Challenge: Research

Generative artificial intelligence adoption in Asia Pacific, including in India, is rapidly accelerating. New research by International Data Corporation—released by data, analytics, and AI company Qlik—shows that AI spending in India is set to grow at 35% annually, reaching $9.2 billion by 2028.

The report also highlighted that poor data quality remains a challenge and emphasised the need for better data quality, governance, and cloud migration to maximise AI’s potential.

The research found that with 36% of enterprises using gen AI and 46% planning investments within 12-24 months—the highest in APAC—India is emerging as a global AI powerhouse. However, only 22% of Indian organisations report measurable AI/machine learning improvements, despite leading the region.

India is on par with ANZ, with 20% of organisations possessing advanced AI capabilities, though it lags behind ASEAN, where 27% have reached this stage. C-suite leaders expect a 4x ROI on AI investments within a year, signalling strong confidence in AI-driven value.

The study highlights data quality as a major barrier, with 54% of Indian organisations citing it as a challenge, surpassing Australia at 40%, ASEAN at 40%, and even the APAC average of 50.4%. Additionally, 62% of Indian organisations recognise the need to improve data governance and privacy policies, while 28% struggle with AI data bias.

To overcome these challenges, Indian enterprises are investing in data integration, ML deployment platforms, and analytics to establish AI-ready data strategies. Strengthening data integrity, transparency, and compliance is key to successful AI adoption, the study noted.

Cloud migration is a priority, with 51% of Indian enterprises deploying AI solutions in the cloud. As AI investments grow, 80% of organisations see cloud migration as essential. India leads ASEAN in public cloud adoption, with 40% of enterprises leveraging one or more public clouds, compared to 31% in ASEAN. Additionally, 30% of organisations prefer a hybrid model, a significantly higher proportion than Australia's 19%.

“Indian organisations see cloud adoption as a critical step towards 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.”

With AI becoming central to enterprise strategy, chief data officers and chief analytics officers are taking on a more prominent role in shaping AI investments and governance. Organisations that empower their data leadership teams with strong governance frameworks and AI-ready data strategies will gain a competitive edge in India’s evolving AI landscape, the study underlined.