A new study by Zoho has revealed that artificial intelligence is now deeply embedded across Indian enterprises, with almost 93 per cent of organisations using the technology in some capacity. The report titled “The AI Privacy Equation: India Market Report” highlights India’s rapid and responsible shift towards AI adoption while maintaining a strong focus on privacy and ethics.
According to the findings, close to 71 per cent of organisations have strengthened their privacy measures after adopting AI tools. The study also notes that 61 per cent have high levels of governance, supported by ethics committees that review how AI is developed and deployed.
Ramprakash Ramamoorthy, Director AI Research at Zoho, said, “The study shows a very deliberate trend. Over 70 per cent of Indian organisations strengthened their privacy frameworks once they started adopting AI. This is not superficial compliance. Teams are introducing guardrails, ethics reviews and data minimisation as part of their engineering workflow. That approach gives India a credible foundation for responsible AI at scale. It also gives us validation for our approach of keeping privacy at the centre of our AI strategy.”
The report further states that 92 per cent of businesses have dedicated privacy teams or officers, a figure higher than the global average. Additionally, about 65 per cent of companies allocate more than 20 per cent of their IT budgets to privacy protection. The study points to a strong understanding of the ethical issues surrounding AI, with 61 per cent of organisations setting up AI ethics committees.
India also stands out as a global leader in enterprise AI adoption. The study suggests that 46 per cent of Indian businesses have adopted AI technologies, supported by strong use cases across multiple functions. About 47 per cent use AI for software development and coding, 41 per cent for customer service, 37 per cent for product development, and 32 per cent for decision making.
Despite strong adoption, challenges remain. Around 44 per cent of organisations say they face issues due to poor data quality and limited data availability. Another 39 per cent report difficulties aligning with regulatory requirements, while 38 per cent cite a lack of technical expertise as a barrier.
The study also identifies the top areas for workforce upskilling. These include AI literacy, data analysis, prompt engineering, and machine learning and model development, signalling a growing need for specialised talent to support the country’s AI ambitions.
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