Indian firms lead global peers in AI adoption, but lag in expertise: Deloitte

Indian Firms Surge Ahead in AI Deployment

Indian businesses are setting a brisk pace in embracing artificial intelligence, outstripping their international rivals in rolling out AI on a large scale. According to Deloitte's 'State of AI in the Enterprise' report for 2026, a striking 40 percent of Indian organizations report significant or full usage of AI, compared to a global average of just 28 percent. This shift marks a clear move from experimental pilots to embedding AI deeply into everyday operations, helping companies boost efficiency and sharpen their competitive edge.

The adoption is particularly robust in critical areas like product development, where 62 percent of firms have implemented AI at scale, followed by strategy and operations at 56 percent, marketing and sales at 55 percent, and supply chain management at 48 percent. These functions are vital for driving growth and streamlining processes, showing how Indian enterprises are leveraging AI to tackle real-world challenges head-on. What's more, a whopping 94 percent of these organizations plan to ramp up their AI budgets over the coming year, signaling strong confidence in the technology's potential to deliver results.

This enthusiasm isn't just talk; nearly all Indian respondents—97 percent—expect noticeable productivity gains in the near term. As companies integrate AI into core activities, they're positioning themselves to unlock new levels of performance that could redefine their industries.

Expertise Shortfall Hampers Full Potential

Despite the impressive rollout, a glaring gap in AI skills is holding Indian firms back from maximizing these investments. Deloitte's findings reveal that only 0 to 4 percent of Indian companies boast high levels of AI expertise, falling short of the global benchmark of 2 to 8 percent. This shortage of specialist talent means many organizations are deploying powerful tools without the in-house know-how to fine-tune them effectively or innovate beyond basic applications.

The challenge underscores a broader issue: rapid adoption without matching capability building can lead to underutilized systems and missed opportunities. Indian leaders now face the task of bridging this divide through targeted training, partnerships with experts, or hiring strategies to cultivate a workforce skilled in AI's nuances. Without addressing this, the promise of transformative change risks remaining just out of reach.

Overcoming Key Hurdles to AI Success

Regulatory and compliance issues top the list of barriers, cited by 39 percent of respondents, closely followed by resistance to change at 34 percent. Interestingly, cost pressures and infrastructure limitations rank lower, at 12 percent and 5 percent respectively, suggesting that mindset shifts and governance readiness are the real bottlenecks.

"Indian organisations are not only piloting AI, but are increasingly operationalising it to unlock near-term productivity and business outcomes," a Deloitte spokesperson noted, highlighting the momentum despite these obstacles.

To push forward, companies are focusing on governance frameworks and cultural adaptations to ease integration. This proactive stance, combined with anticipated budget hikes, points to a maturing AI landscape in India, where firms are learning to navigate complexities while chasing substantial rewards. Leaders emphasize the need for agile operating models that balance innovation with accountability.

In summary, Indian enterprises are frontrunners in scaling AI adoption across key business functions, fueled by optimism for productivity boosts and rising investments. Yet, the expertise deficit and hurdles like regulations and change resistance highlight areas for urgent improvement to fully harness AI's power.