AI Adoption in Indian Businesses Accelerates, but Governance Remains a Challenge Only 23% of enterprises have implemented AI ethics and governance frameworks, though over 40% are open to external audits and bias assessments
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The adoption of Artificial Intelligence (AI) in Indian businesses is accelerating, with enterprises recognizing its potential to enhance decision-making, operational efficiency, and customer experience.
A new report by global consulting firm Protiviti and the Confederation of Indian Industry (CII) highlights how AI is becoming a strategic priority for organizations, with over half of Indian enterprises planning to expand AI adoption rapidly. Released at the 4th edition of the CII International Conference on Artificial Intelligence—The AI India Show 2025, the report titled "AI Trends and Future Impact: Industry Adoption and Insights" reveals that 59 per cent of surveyed enterprises are either moderately or fully prepared to integrate AI into their operations, while 38 per cent remain in early readiness stages.
Despite the growing enthusiasm, governance and ethical considerations remain key concerns. Only 23 per cent of enterprises have implemented AI ethics and governance frameworks, though over 40 per cent are open to external audits and bias assessments. The governance debate is also influencing leadership roles, with 36 per cent of executives favoring a Chief AI Officer (CAIO) to oversee AI initiatives, while 18 per cent prefer a shared responsibility approach.
While AI adoption is increasing, organizations face key barriers, including ethical and compliance risks, a shortage of skilled professionals, high implementation costs, and data privacy concerns. However, 65-70 per cent of enterprises feel prepared in terms of data readiness, strategy, and culture. AI technologies such as Predictive AI, Chatbots, and Machine Learning have seen the highest implementation rates, while Generative AI and Agentic AI are gaining traction for future investment.
As AI becomes more cost-effective, its impact is expected to accelerate across industries like healthcare, financial services, and manufacturing. However, ensuring governance, accountability, and workforce readiness will be crucial for sustainable AI adoption in the coming years.
