A strong wave of artificial intelligence adoption is sweeping across Indian enterprises, positioning them ahead of global peers in large-scale implementation. However, this rapid progress is accompanied by a noticeable gap in specialised AI skills, raising concerns about long-term sustainability.
According to a report by Deloitte, Indian organisations are moving beyond pilot projects and are leading in deploying AI at scale across key business functions. The ‘State of AI in the Enterprise’ report for 2026 highlights that adoption is strongest in Product Development (62%), Strategy and Operations (56%), Marketing & Sales (55%), and Supply Chain (48%). This indicates that AI is now deeply integrated into areas that drive growth, efficiency, and competitive advantage.
The report further notes that 40% of Indian respondents report significant or full AI usage, compared to a global average of approximately 28%. This shows that companies in India are not just experimenting but actively using AI to achieve near-term productivity and business outcomes. The India findings are based on responses from over 200 business and technology leaders as part of a global survey.
Investment momentum is also rising, with 94% of Indian organisations expecting their AI budgets to increase over the next year. Despite this aggressive expansion, a capability gap remains evident. Only 0–4% of Indian firms report having high levels of AI expertise, compared to the global average of 2–8%.
The report identifies regulatory and compliance requirements (39%) as the biggest challenge to AI adoption, followed by resistance to change (34%). In comparison, cost (12%) and infrastructure (5%) are seen as less significant barriers. This suggests that governance readiness and organisational change are the main hurdles to scaling AI.
Even with these challenges, confidence in AI remains strong. About 97% of respondents expect productivity improvements from AI adoption.
“Indian enterprises are entering a defining phase in their AI journey, where ambition is translating into enterprise-wide execution. The momentum we are seeing reflects a strategic shift from experimentation to embedding AI into the fabric of how organisations create value and compete. “The next chapter will be shaped less by access to technology and more by the ability to build institutional capability, strengthen governance, and align people with new ways of working. Organisations that invest in trust and skills today will be better positioned to convert early gains into sustained advantage,” said S Anjani Kumar, Partner, Deloitte India.
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