87% of Indian firms to hike their AI spend by 10% in 3 years

Nearly 87 per cent of enterprises in India are likely to increase annual artificial intelligence (AI) spending by more than 10 per cent in the next three years, a new report showed on Tuesday. Approximately 80 per cent of enterprises in the country have at least one AI model in production, indicating an extensive penetration of AI/machine learning (ML) across enterprises. Within providers, too, 64 per cent have AI/ML as a core element for many of their products, as against 56 per cent of their global counterparts, according to the report by Bain & Company's, in collaboration with Microsoft and the Internet and Mobile Association of India (IAMAI). "While the availability of data and cloud-based infrastructure have aided AI adoption, concerns related to data security, infrastructure, and management continue to be the most significant barriers for enterprises," said Velu Sinha, Partner, Bain & Company and co-author of the report. The report was launched by Amitabh Kant, CEO, NITI Aayog, in the presence of top executives from the companies.