Parul
SAP has unveiled new AI research highlighting that a staggering 96% of Indian midmarket organisations, those with between 250 and 1,500 employees, are prioritising the implementation of artificial intelligence (AI) at a moderate or strong level. This new research, the second of its kind in India this year, provides key insights into how mid-sized businesses in India are embracing AI faster than their global counterparts.
The global survey, which included responses from 12,003 businesses worldwide, with 800 from India, shows that AI adoption is gaining rapid traction among Indian midmarket businesses. “India’s midmarket businesses are the backbone of the nation’s economy. AI is a game-changer for these companies, offering agility, actionable insights, and helping them thrive in a digital economy,” said Manish Prasad, President and Managing Director of SAP Indian Subcontinent. “Partnering with technology providers like SAP, who have AI built into their applications, is critical for making the promise of Business AI a reality for every Indian business.”
Indian midmarket businesses lead in AI adoption
The survey reveals that Indian midmarket businesses are ahead of the global curve in adopting AI technologies:
- A significant 96% of Indian midmarket organisations consider the implementation of Generative AI (Gen AI) a top priority, compared to 91% globally.
- AI adoption (66%) ranks just behind preparing for cybersecurity threats (67%) as the top organisational priority for Indian businesses in 2024, surpassing the goal of making business operations more environmentally sustainable (65%).
AI is driving business transformation in India
Indian midmarket businesses are also placing a greater emphasis on AI to transform their operations compared to their global counterparts:
- Over half of Indian midmarket companies prioritise using AI to enhance privacy and security (55%) and improve decision-making (52%), ahead of the global average (50% and 49%, respectively).
- AI is also being leveraged to improve training and skills development (51%), enhance customer experience (50%), and optimise supply chains and logistics (50%).
AI adoption is already underway in India
Indian midmarket businesses are adopting AI at a faster rate than those in the rest of the world:
- 49% of Indian businesses are already using AI for forecasting and budgeting compared to 40% globally.
- Similarly, 48% of Indian companies are deploying AI to develop marketing and sales content, compared to 41% worldwide.
- Other popular AI applications include gathering market intelligence (47%), monitoring regulatory compliance (47%), and managing cybersecurity threats (46%).
Talent shortage poses the biggest challenge to AI implementation
However, the research also identifies significant risks and challenges:
- The biggest challenge facing Indian midmarket businesses in their AI journey is finding, attracting, and retaining talent with the necessary AI skills (39%).
- Data-related concerns also pose a major risk, with a lack of transparency behind AI results (36%), acting on incorrect information (36%), and insufficient data quality for AI models (33%) cited as key issues.
This research underscores the urgency for Indian businesses to invest in AI talent and address data quality issues to fully realise the potential of AI. As India’s midmarket companies continue to lead the way in AI adoption, overcoming these challenges will be crucial to sustaining their competitive edge in the rapidly evolving digital economy.
