Governance Emerges as India Inc’s Top Priority as Companies Race to Scale AI Infrastructure: IBM Study

India Inc is placing AI governance at the centre of its growth strategy, with a new study from the IBM Institute for Business Value revealing that strong oversight is now seen as the most critical factor for scaling AI infrastructure.

In the report titled AI Infrastructure That Endures, 83% of Indian executives say that robust governance frameworks are essential for deploying AI at scale. Yet, only 4% claim their organisations have fully established mechanisms to manage AI-related risks — signalling a widening preparedness gap even as AI adoption accelerates.

Despite this shortfall, enterprises are increasing investments significantly. Nearly 58% of companies have boosted their infrastructure budgets, with spending expected to rise by 19% in 2025, mirroring global trends. However, just one in ten leaders believes their current systems are fully ready to support AI needs, underscoring the urgent need for modernization to enable trust, speed and scalable performance.

According to Subhathra Srinivasaraghavan, Vice President at the IBM India Systems Development Lab, Indian businesses are entering a defining stage of their AI evolution. She noted that organisations must now convert ambition into long-term impact by building agile, trustworthy and talent-driven AI ecosystems. Strengthening hybrid architectures, deepening AI skills and adopting governance-by-design were highlighted as key enablers for India’s progress toward its Viksit Bharat vision.

The study finds that hybrid infrastructure is emerging as a performance catalyst — with 65% saying a fit-for-purpose hybrid strategy has improved cost and efficiency. Another 32% plan to expand hybrid AI environments over the next three years.

On the skills front, companies recognise talent as a core driver of AI success. Eighty-three per cent are investing in training or hiring for AI-focused roles, though 75% admit they are still early in workforce maturity. Meanwhile, 43% have set up AI Centres of Excellence to scale internal capabilities.

Source: ANI