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 Majority of Indian organisations are progressing to the mid-level maturity stage on artificial intelligence (AI), with defined strategies and initial implementation of select use cases while aiming to scale these solutions further, a Nasscom report showed on Thursday. 

While 75 per cent of the surveyed organisations have AI strategy defined at proof of concept (PoC) level, 40 per cent show moderate-to-high maturity in PoC-to-production.

The Nasscom-EY report mentioned that to drive the leap from AI-ready to AI-first organisations, Indian enterprises will need to move beyond the PoCs to scale AI implementations.

The growth in the Indian AI market, although at a nascent stage, is expected to mirror the global AI market growth rate of 25-35 per cent over the next three-four years.

As AI evolves from an emerging technology to a fundamental pillar of business strategy, Indian enterprises have a unique opportunity to lead this transformation, said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom.

AI chatbots and voice assistance remain the most-deployed AI technologies in 2024 and more than 50 per cent enterprises have production-grade chatbots and virtual assistants.

Two-in-three companies are experimenting with open-source AI software while over 60 per cent enterprises indicate urgent need for skills combining AI tech with domain knowledge to think and conceptualize. innovative use cases, the report noted.

Despite a slowdown in tech spending, AI budgets remain strong, with 40 per cent of companies having dedicated AI funds and 64 per cent allocating at least 5 per cent of their tech budget to AI.

However, while India is a major talent hub for AI, enterprises struggle to find domain-specific and strategic AI expertise, often starting with “AI-as-a-service” models.

To boost AI adoption, Indian companies need "right-sized" operating models, combining internal and external talent, consistent leadership oversight, and AI Centres of Excellence (CoEs) to scale AI initiatives, the report mentioned.

To accelerate AI adoption and transition from AI-ready to AI-first, Indian enterprises, both large and SMBs, need to focus on several strategic actions, it added.