Indian Enterprises Accelerate Generative AI Adoption as National AI Spending Projected to Reach $9.2 Billion by 2028

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Image Courtesy: Qlik

India is emerging as a key player in the global artificial intelligence landscape, with AI investments expected to grow at a compound annual growth rate of 35%, reaching $9.2 billion by 2028. This projection comes from a newly released IDC InfoBrief, commissioned by Qlik and co-sponsored by Amazon Web Services (AWS), titled “The AI Pivot: Accelerating GenAI Adoption and Unlocking Data-Driven Business Value.”

The report highlights the rapid uptake of generative AI (GenAI) across the Asia Pacific region, with India leading the charge. Currently, 36% of Indian enterprises have already adopted GenAI technologies, and another 46% are planning to invest within the next one to two years—representing the highest intent across APAC.

Despite this momentum, only 22% of Indian organizations report significant performance gains from AI/ML initiatives. In terms of advanced capabilities, India is on par with Australia and New Zealand (20%) but slightly behind ASEAN (27%).

Key challenges remain. Data quality stands out as the most significant barrier, cited by 54% of Indian organizations—higher than the APAC average of 50.4%, and more than reported in ASEAN and Australia (both at 40%). Furthermore, 62% of Indian enterprises identified the need to strengthen governance and data privacy policies. Data bias in AI models is also a concern, with 28% of Indian organizations acknowledging it as a challenge.

To address these issues, businesses are actively investing in data integration tools, AI-ready platforms, and scalable analytics solutions. Building robust governance frameworks and enhancing data integrity are seen as critical steps to ensure responsible and effective AI deployment.

“Generative AI is already driving transformative change across sectors in India—from fraud detection in financial services to predictive maintenance in manufacturing,” said Deepika Giri, Associate Vice President at IDC Asia/Pacific. “But to truly scale, organizations must focus on trusted data, clear governance, and infrastructure readiness.”

Cloud adoption is playing a pivotal role in AI deployment. Currently, 51% of Indian companies are deploying AI workloads on the cloud, and 80% view cloud migration as essential to future success. India also leads ASEAN in public cloud adoption, with 40% of enterprises using one or more public clouds compared to 31% in ASEAN. Additionally, 30% of Indian firms prefer a hybrid cloud model—significantly higher than the 19% observed in Australia.

“Cloud infrastructure is becoming the backbone of AI innovation,” said Varun Babbar, Vice President, India at Qlik. “Organizations that invest in reliable, scalable data frameworks are better equipped to deliver meaningful AI outcomes. At Qlik, we support enterprises in improving data quality, reducing bias, and meeting compliance needs—ensuring AI delivers measurable and long-term value.”

One prominent example is Indian Oil Corporation Limited (IndianOil), one of the country’s largest public sector organizations. The company has implemented Qlik solutions through its i-DRIVE initiative, enabling over 10,000 users to track more than 3,000 KPIs via self-service analytics. By integrating AI and machine learning into its decision-making processes, IndianOil has improved predictive maintenance, supply chain optimization, and operational flexibility—all while maintaining strong data governance and compliance standards.

As AI becomes central to business strategy, data and analytics leaders such as Chief Data Officers (CDOs) and Chief Analytics Officers (CAOs) are playing a larger role in shaping investments and policy. Organizations that empower their leadership with robust frameworks and AI-ready data strategies are better positioned to compete in India’s fast-evolving AI ecosystem.

Qlik helps organizations unlock the full potential of their data through solutions in data integration, governance, analytics, and artificial intelligence. Supporting over 40,000 global customers, Qlik provides scalable, enterprise-grade tools designed to deliver actionable insights, uncover hidden patterns, and drive better business decisions. With platform-agnostic technologies, Qlik partners with organizations to enable data-driven growth and innovation across industries.