India’s enterprise AI landscape is at an inflection point, with nearly half of Indian enterprises hosting multiple Generative AI use cases live and another large share in pilot phases, signaling a move from experimentation to production performance.

Experts call for a shift from isolated experiments to integrated AI in core workflows, stressing data readiness, model assurance, and Responsible AI to secure a competitive edge.

EY India partners say enterprises are embedding AI into core workflows to deliver measurable results, signaling a move from pilots to production deployments.

There is a gap between conviction in AI’s potential and actual financial commitment, with ROI-focused strategies and partnerships and hybrid models playing central roles in accelerating adoption.

Despite optimism, AI budgets remain cautious: more than 95% of organisations allocate under 20% of their IT budgets to AI, with only about 4% going above that threshold.

The ROI framework for AI is expanding to five dimensions—time saved, efficiency gains, business upside, strategic differentiation, and resilience—beyond traditional cost and productivity metrics.

Speed drives decisions: 91% of leaders say rapid deployment is the key factor in buy-versus-build decisions, while investments over the next year target operations, customer service, and marketing.

A persistent AI talent shortage (about 59%) persists even as many firms pursue selective workforce transformation, pushing a shift toward AI-first operating models with human–machine collaboration.

External collaboration is rising, with roughly 60% of organisations co-innovating with startups and OEMs and about 78% adopting hybrid internal–external deployment models to accelerate AI initiatives.

A strong majority of business leaders (about 76%) expect GenAI to have a significant business impact, and around 63% feel ready to leverage it effectively.

A clear gap remains between conviction and commitment, affecting the speed and scale of AI-driven transformation.

Over the coming year, GenAI investments are expected to intensify in operations, customer service, and marketing, reflecting deeper integration into core functions.