Cisco Study Reveals AI Readiness Gap in India

At Cisco Live, the company unveiled the 2024 AI Readiness Index, highlighting a concerning drop in India’s AI preparedness—from 26% last year to just 18% today.

Findings from the Cisco 2024 AI Readiness Index reveal a concerning drop in India's AI preparedness. Despite rapid market evolution, only a small fraction of businesses are equipped to fully deploy AI technologies. This drop highlights the persistent challenges in adopting, deploying, and scaling AI solutions effectively.

The survey, covering 3,660 senior leaders across 14 Asia-Pacific, Japan, and China (APJC) markets, assessed AI readiness based on six pillars: strategy, infrastructure, data, governance, talent, and culture.

Mounting Pressure to Deliver AI Outcomes

AI adoption has become a business imperative, with Indian CEOs and leadership teams driving urgency in deployment. A significant 57% of companies allocate 10-30% of their IT budgets to AI initiatives, focusing on areas like cybersecurity, IT infrastructure, and data analytics.

However, returns on these investments often fall short of expectations. Many organizations report limited gains in improving efficiency, innovation, and profitability despite prioritizing AI-driven transformations.

Infrastructure and Talent Challenges

Infrastructure readiness emerged as a critical bottleneck, with only 21% of organizations equipped with adequate GPUs and just 36% demonstrating robust AI model security capabilities. Additionally, 55% of businesses identified improving IT scalability and flexibility as top priorities.

Talent shortages further exacerbate the readiness gap. Companies across India cite the lack of skilled professionals as a significant challenge in advancing AI initiatives.

"As the race to adopt AI accelerates, talent becomes a key differentiator," said Anupam Trehan, VP, People and Communities APJC, Cisco. "Organizations must invest in upskilling their workforce and collaborate with stakeholders to build a strong talent pipeline."

Dave West, President, APJC, Cisco, noted, "Companies need a comprehensive approach to AI implementation, connecting the dots to link AI ambition with readiness. A modern digital infrastructure capable of meeting evolving power needs and network latency requirements is crucial."

The Path Ahead

While current investments yield mixed results, the long-term commitment to AI remains strong. Nearly 39% of organizations plan to dedicate over 40% of their IT budgets to AI within the next five years, up from just 7% today.

To succeed, businesses must address infrastructure gaps, cultivate skilled talent, and adopt a holistic approach to AI implementation.