Fri Feb 21 08:49:04 UTC 2025: ## Indian Businesses Embrace AI, but Governance Concerns Remain

**NEW DELHI** – A new report by Protiviti and the Confederation of Indian Industry (CII) reveals a surge in Indian businesses adopting Artificial Intelligence (AI), with a 54% increase in decision-making capabilities as a result. The report, “AI Trends and Future Impact: Industry Adoption and Insights,” launched at the AI India Show 2025, surveyed over 300 enterprises across various sectors.

Over half of surveyed companies plan to rapidly expand their AI initiatives, driven by goals to boost operational efficiency, improve customer experience, and enhance decision-making. Predictive AI, chatbots, and machine learning are currently the most implemented technologies, while generative and agential AI are gaining traction.

However, the report highlights significant challenges. Ethical concerns, bias, legal compliance, a shortage of skilled professionals, high implementation costs, and data privacy issues are major obstacles. While many organizations feel prepared in terms of data, strategy, and culture for AI adoption, only 23% have implemented AI ethics and governance frameworks.

The lack of robust governance is a key concern. While 36% believe a Chief AI Officer (CAIO) is necessary, another 18% advocate a shared responsibility approach. Encouragingly, over 40% are open to external AI audits and bias assessments.

Amit Lundia, Managing Director of Protiviti, emphasized India’s leading role in the global AI shift, noting the increasing consideration of generative AI and a commitment to responsible AI practices. Sandeep Gupta, Managing Director of Protiviti Member for India, highlighted AI’s transformative potential and cost-effectiveness as key drivers of future innovation.

The report also found that while many are prepared for AI adoption, around 55-60% feel limited or unprepared regarding infrastructure, governance, and costs. The financial services industry is leading the charge in adopting Generative AI and LLMs, with 85% of respondents already considering these technologies. The report concludes that addressing governance concerns is critical for realizing the full potential of AI in India.

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