India’s embrace of Generative AI (GenAI) is being affected by legacy infrastructure, with 87 per cent of organisations citing outdated systems as a big barrier to leveraging the full potential of the technology. But despite this, Indian businesses are undeterred, with all surveyed organisations confirming plans to invest further in GenAI, as per a study.
The NTT Data study revealed India’s unique position in the GenAI landscape. While 95 per cent of Indian organisations have established GenAI strategies, 37 per cent are yet to align these plans with their broader business objectives, potentially limiting returns on their investments. Despite this, Indian leaders are overwhelmingly optimistic about the transformative potential of GenAI.
Infrastructure modernisation remains a critical priority. All Indian IT decision-makers agree that cloud-based solutions are the most practical way to support GenAI applications, pointing to an urgent need to upgrade outdated systems. While regulatory concerns add another layer of complexity, with 81 per cent of respondents stating that unclear AI regulations impede progress, leaders remain undeterred.
About 84 per cent of Indian C-suite executives expect huge transformation through GenAI by 2025 and they see its applications as key to maintaining competitiveness, accelerating innovation, and ensuring compliance. Quality control, risk assessment, fraud detection, process automation, and personalised service recommendations are emerging as top use cases, reflecting the versatility of GenAI across industries in India.
During a conference earlier this week, Michael Debabrata Patra, Deputy Governor at the Reserve Bank of India (RBI), mentioned that GenAI is projected to boost India’s GDP by USD 359 billion to USD 438 billion by 2029-30.
However, challenges persist. Over 55 per cent of respondents in the NTT Data report noted skill gaps in employees’ ability to work with GenAI tools, while concerns about safety and security are prevalent. User resistance and limited awareness of the technology also hinder broader adoption. As organisations work to address these issues, many are implementing training and education programs to boost workforce readiness.
According to a report by Nasscom, the Indian tech industry has seen a sevenfold rise in activity in GenAI-focused areas in H1 2024. About 57 per cent of the activity in the first half of 2024 centered around new product launches, which were driven by strategic partnerships formed in 2023. The industry, which included the likes of TCS, LTIMindtree and Infosys, has also focused platformisation and aggregation, leveraging Centres of Excellence (CoEs) and Gen AI hubs to streamline proof-of-concept (PoC) efforts and deployment
“The future is clear. Generative AI is more than just another tool – it’s a transformative force,” said Yutaka Sasaki, President and Chief Executive Officer, NTT Data Group.
The optimism surrounding GenAI is overwhelmingly reflected in the sentiments of Indian executives, with 79 per cent expressing excitement about its potential to revolutionise industries and economies.
“As we move beyond experimentation, a tension emerges: move too fast, and we risk unintended circumstances; move too slow and we fall behind. Getting GenAI right isn’t optional,” added Sasaki.
