- Only 10% of Indian business leaders say their AI infrastructure meets all needs currently
- 58% of Indian firms increased AI infrastructure investment, with 19% budget growth in 2025
- 65% agree hybrid AI infrastructure optimizes costs and performance effectively
Even as AI becomes central to business transformation, only 1 in 10 Indian business leaders say their current infrastructure meets all their AI needs, according to a new study by the IBM Institute for Business Value. This number signifies that even as Indian organisations are boosting investments in AI infrastructure, they continue to face a significant readiness gap.
The study highlights strong investment momentum. 58% of Indian organisations report increased infrastructure investment due to growing AI demand, with budgets rising by an average of 19% in 2025, mirroring global trends. Yet, despite this acceleration, the study says that organisations must continue investing in the non-negotiables for AI readiness.
Subhathra Srinivasaraghavan, vice president, IBM India Systems Development Lab, said “Indian enterprises are entering a pivotal phase in their AI journeys where ambition must now translate into sustainable impact. To do that, organisations must intentionally build infrastructure that is agile, trusted and talent-led. By optimising hybrid architectures, embedding robust governance frameworks and nurturing deeper AI skills, India can accelerate transformative outcomes across every sector, and move with confidence toward the vision of Viksit Bharat.”
According to the study, the non-negotiables for AI readiness are:
Hybrid Infrastructure for AI Performance
65% agree that implementing a ‘fit-for-purpose' strategy for AI infrastructure has helped optimise costs and performance.
32% plan to expand their hybrid AI infrastructure approach over the next three years.Trust-by-design for AI at Scale
83% agree that effective AI governance is essential for successful AI infrastructure deployment.
However, only 4% currently have robust frameworks for managing AI-related risks and ensuring ethical AI practices.
Talent & Skills for AI Impact
83% are investing in training and recruitment for AI-related roles to support infrastructure modernisation.
75% remain in the early phases of workforce maturity for AI roles.
43% have established an AI Centre of Excellence (CoE) to strengthen AI capability and infrastructure readiness.
