India’s AI Revolution: From Testing to Real-World Impact
India’s corporate sector has reached a critical turning point in artificial intelligence adoption, with 47% of enterprises now running multiple Generative AI applications in production. This marks a decisive shift from pilot projects to performance-driven implementation across business operations.
Key Takeaways
- 47% of Indian enterprises have multiple GenAI use cases live
- 76% of business leaders expect significant GenAI impact
- 91% prioritize rapid deployment in AI adoption decisions
- Operations, customer service and marketing lead investment focus
Confidence Meets Implementation
The joint EY-CII report reveals strong optimism among Indian business leaders, with 76% believing GenAI will deliver substantial business impact. More importantly, 63% feel adequately prepared to leverage the technology effectively.
“Our survey shows that corporate India has moved beyond experimentation. Nearly half the enterprises already have multiple use cases in production,” said Mahesh Makhija, Partner and Technology Consulting Leader at EY India.
“For enterprises, the focus must now move from building pilots to designing processes where humans and AI agents collaborate seamlessly,” he added.
Investment Gap Despite Optimism
Despite the enthusiasm, AI funding remains conservative. Over 95% of organizations allocate less than 20% of their IT budgets to AI initiatives, with only 4% crossing this threshold. This creates a clear imbalance between conviction and financial commitment.
Redefining ROI Measurement
Companies are evolving beyond traditional cost-reduction metrics to a comprehensive five-dimensional ROI model that includes:
- Time saved
- Efficiency gains
- Business upside
- Strategic differentiation
- Organizational resilience
Speed as Competitive Advantage
Rapid deployment has emerged as the dominant factor in AI strategy, with 91% of leaders citing it as crucial in their “buy versus build” decisions. This reflects growing urgency to convert AI innovation into tangible business outcomes.
Future Investment Priorities
Over the next year, GenAI investments will concentrate on core business functions:
- Operations: 63%
- Customer Service: 54%
- Marketing: 33%
Chandrajit Banerjee, Director General of CII, emphasized the broader implications: “The coming decade will be defined not only by the speed of AI adoption, but by the quality of its integration into India’s economic and social fabric. This transformation has the potential to add value to India’s growth story.”
