Pune : Sixty percent of Indian enterprises believe that Artificial Intelligence (AI) will disrupt their business in the next two-three years, according to a study by industry body Nasscom and consultancy EY.
The study, ‘Can enterprise intelligence be created artificially? A survey of Indian enterprises,’ is based on a survey of over 500 CXOs across sectors like retail, BFSI, healthcare and agriculture on the maturity of AI adoption along with the key challenges faced on their AI enterprise journey.
Seventy percent of Indian enterprises that deployed AI have achieved measurable results.
“As industry witnesses a rapid advancement in new technologies, Artificial Intelligence increasingly becoming an imperative for businesses across industries. Implementing AI will not only catalyse the innovation to stay competitive but also generate long-term value for enterprises,” said Debjani Ghosh, President, Nasscom.
Operational efficiency, customer experience and revenue growth are the main reasons why enterprises are turning to AI, with BFSI firms (36%) leading the way, followed by retail (25%), healthcare (20%) and agriculture (8%).
“Some of the biggest impediments to the adoption of AI include the quality of data available, the level of digitisation at the enterprise and the maturity of the partner network,” said Nitin Bhatt, Partner and Technology Sector Leader, EY India.
Ensuring trust through explainability, accountability and ethical use are also major concerns for wider AI adoption.
People and cultural issues were other big challenges, with 40% citing workforce displacement and 32% citing cultural impediments to AI adoption.
However, among the firms that had gone ahead with AI adoption, 19% said workforce displacement was a challenge while 55% cited cultural factors.
“Explainability is an important factor. People are seeing AI algorithms making important decisions without knowing how and why it makes those decisions,” said Bhatt.
It is important to bring in a trust factor, especially around important decisions to boost the adoption of AI. While 74% of the respondents have established either a formal strategy or obtained C-suite sponsorship to initiate or scale-up their AI programs, 78% said that reskilling existing employees will help maximise value from their AI programs.
Vijay Bhaskaran, Partner – Technology Consulting, EY said: “AI has immense capability to unlock exponential value for businesses and navigate the complexities of the ever-evolving digital economy. However, enterprises too need to equip themselves with the right AI platform that can help them rapidly adopt and scale AI solutions, resulting in faster, smarter and future ready businesses.”