AI spending in India set to reach $9.2 billion by 2028: Report

IANS April 15, 2025 215 views

India's artificial intelligence market is experiencing remarkable growth, with spending expected to surge to $9.2 billion by 2028. The technology landscape is complex, with enterprises grappling with data quality and governance challenges while simultaneously investing in cloud-based AI solutions. Generative AI is making significant inroads across various industries, transforming sectors like retail, finance, and manufacturing. Despite challenges, Indian organizations remain optimistic about AI's potential, focusing on building robust data infrastructure and scalable strategies.

"Indian organisations see cloud adoption as a critical step toward AI success" - Varun Babbar, Qlik VP
New Delhi, April 15: Artificial intelligence (AI) spending in India is set to grow at 35 per cent annually, reaching $9.2 billion by 2028, a report showed on Tuesday.

Key Points

1

- AI spending projected to reach $9.2 billion by 2028

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51% of enterprises host AI solutions in cloud

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54% face data quality challenges

This emphasises the need for better data quality, governance, and cloud migration to maximise AI's potential, according to the report by Qlik while releasing a new research paper by International Data Corporation (IDC).

About 51 per cent of Indian enterprises host AI solutions in the cloud, but poor data quality remains a challenge.

The report highlighted data quality as a major barrier, with 54 per cent of Indian organisations citing it as a challenge, surpassing Australia at 40 per cent, ASEAN at 40 per cent, and the APAC average of 50.4 per cent.

Additionally, 62 per cent of Indian organisations recognised the need to improve data governance and privacy policies, while 28 per cent struggled with AI data bias, more than ASEAN at 21.8 per cent and Australia at 20 per cent, the report mentioned.

To overcome these challenges, Indian enterprises are investing in data integration, ML deployment platforms, and analytics to establish AI-ready data strategies. Strengthening data integrity, transparency, and compliance is key to successful AI adoption.

"Indian organisations see cloud adoption as a critical step toward AI success," said Varun Babbar, Vice President, India, Qlik.

"To scale AI-driven innovation, businesses need a strong, scalable data infrastructure that supports high-performance AI applications," he added.

The 'IDC InfoBrief' report found that with 36 per cent of enterprises using GenAI and 46 per cent planning investments within 12-24 months.

India is on par with Australia and New Zealand, with 20 per cent of organisations possessing advanced AI capabilities, though it lags behind ASEAN, where 27 per cent have reached this stage.

"GenAI is transforming industries in India -- from compliance in retail to fraud prevention in finance and predictive maintenance in manufacturing," said Deepika Giri, AVP, Big Data Analytics, Blockchain, and Web3 Research, IDC Asia/Pacific.

However, to unlock its full potential, organisations must prioritise trusted data, robust governance, and infrastructure readiness to scale AI effectively and responsibly, she mentioned.

Reader Comments

R
Rahul K.
This is exciting news for India's tech future! 💻 The growth projections show how serious companies are about AI adoption. But we really need to address those data quality issues - garbage in, garbage out as they say in tech.
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Priya M.
As someone working in data analytics, I can confirm the data quality challenges are real. Many companies rushed to adopt AI without proper data foundations. Hope this report makes them take governance more seriously!
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Amit S.
While the numbers look impressive, I'm concerned about the 28% struggling with AI bias. We need more diversity in AI development teams to prevent biased algorithms that could affect millions of people.
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Sanjana P.
The cloud adoption numbers are lower than I expected! ☁️ With all the hype around AI, I thought more companies would have moved to cloud by now. Interesting to see India keeping pace with Australia/NZ though.
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Vikram J.
Respectful criticism: The article focuses heavily on corporate AI but doesn't mention enough about how this will impact jobs or require workforce reskilling. The human element is just as important as the tech investment numbers.
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Neha R.
GenAI applications in retail and finance sound promising! 🛒💰 Hope this leads to better customer experiences rather than just cost-cutting measures. The potential is huge if done right.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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Tags:
AI Spending India Technology Qlik Report GenAI Cloud Computing IDC Research
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