Survey Reveals AI Investment Trends among Indian Businesses
Ramping Up Investments in Generative AI
Almost eight in ten businesses in India are planning to significantly ramp up their investments in artificial intelligence (AI) in preparation for a year of rapid change in 2025. However, a recent survey suggests that these investments are heavily skewed towards technology rather than the people who will utilize it, presenting a key challenge in tapping into the full potential of generative AI (GenAI).
Executive Insights on AI Adoption
Accenture’s latest survey, encompassing opinions from executives and employees across major Indian businesses, reveals that the adoption of generative AI is accelerating at a noteworthy pace.
Disparity in Investment Focus
Data from 2,000 GenAI-related projects conducted by Accenture indicates a significant disparity in investment. Companies are spending three times more on technology than on the necessary training and support for their workforce.
Confidence in Increased Investment
The findings show that a vast majority (78%) of C-suite leaders in India feel prepared to increase their investments in GenAI by 2025. The executives identified three primary reasons for this confidence:
- Capitalizing on advances in the technology (29%)
- Increasing confidence in managing associated business risks (23%)
- Maintaining business competitiveness (17%)
Rapid Development in GenAI
According to the survey, 67% of C-suite leaders feel that their organization’s GenAI development is progressing faster than they initially anticipated.
Specific Task Enhancement
Indian executives are primarily focused on investing in GenAI to enhance processes, with 56% aiming to complete specific tasks or workflows. This reflects a greater emphasis than seen in other regions.
Understanding GenAI’s Value
Despite the increasing investments, both executives and employees exhibit skepticism regarding the potential value of GenAI. While 66% of C-suite leaders feel they understand this potential “to a great extent,” only 45% of employees share that sentiment.
Impact on Workforce
The introduction of GenAI is expected to significantly affect job roles, with 77% of employees believing their positions will be impacted as per the survey results.
Training Disparities
Interestingly, 93% of C-suite leaders believe that employees in their organizations have received adequate training to use AI or GenAI efficiently. However, only 86% of employees agree with this assessment.
Concerns Among Non-Users
Employees not currently using GenAI tools have raised several concerns. The primary issues highlighted include:
- Lack of resources (38%)
- Accuracy of the output (33%)
- Difficulty with integration (10%)
Focus on Talent Development
Saurabh Kumar Sahu, managing director and lead for India business at Accenture, emphasizes the importance of balancing technology investments with talent development. He stated, “While the excitement around generative AI is palpable, it is crucial for Indian businesses to balance their investments in technology with a strong focus on talent development.”
Creating a Robust Ecosystem
According to Sahu, aligning people, processes, and technology is essential to creating a robust ecosystem that enhances operational efficiency and fosters a culture of continuous learning and innovation.
Recent Survey Insights
The Accenture Pulse of Change and Employee Surveys, recently conducted in November and December 2024, gathered insights from 790 C-suite executives and 687 non-C-suite level employees across 22 industries and five countries in the Asia-Pacific region, including Australia, China, India, Japan, and Singapore.
Conclusion
As Indian businesses prepare for the future, the call for a balanced approach to AI investment, focusing equally on technology and workforce development, is more important than ever. Insights from this survey highlight both the opportunities and challenges that lie ahead in the rapidly evolving field of generative AI.
Questions & Answers
- What percentage of Indian businesses plan to increase their investments in AI by 2025?
Almost 80% of businesses in India plan to ramp up their investments in AI by 2025. - How much more is being invested in technology compared to talent for GenAI projects?
Companies are spending three times more on technology than on talent development in GenAI projects. - What are the primary reasons C-suite leaders have for increasing GenAI investments?
The three primary reasons are capitalizing on advances in technology (29%), increasing confidence in managing business risks (23%), and maintaining competitiveness (17%). - What percentage of employees believe their roles will be impacted by GenAI?
77% of employees believe their roles will be affected by the introduction of GenAI. - What concerns do employees have about using GenAI tools?
Employees who do not currently use GenAI tools cite lack of resources (38%), accuracy of the output (33%), and difficulty with integration (10%) as primary concerns.