India's AI Gap: Only 15% of Firms Have AI in Production, Report Reveals Challenges

• Only 15% of Indian firms have successfully moved AI from pilot projects to full production, despite high investment and talent growth.
• A significant gap exists between AI experimentation (36% budget allocation for GenAI, 24% testing) and real-world implementation.
• Poor data quality (54%), lack of internal AI skills and governance (62%), and concerns about AI bias are major barriers to adoption.
• IT/ITeS and business services are expected to see the most AI-driven transformation, with India's AI industry projected to grow at a 45% CAGR.
• India lags global peers in production-grade AI workloads due to issues like governance, cost attribution, and organizational readiness.