India Inc sees governance as top priority for scaling AI infrastructure: IBM Study

Bengaluru, (Karnataka) [India] November 27 : As Indian enterprises accelerate their shift toward AI-driven operations, effective governance has emerged as the most critical requirement for success, according to a new study by the IBM Institute for Business Value (IBV).

The report, 'AI Infrastructure That Endures', shows that 83 per cent of Indian executives believe strong governance frameworks are essential for building AI systems at scale, but only 4 per cent say they have fully embedded mechanisms to manage AI-related risks.

The study highlights a widening readiness gap even as organizations rapidly increase investments. Only 1 in 10 business leaders surveyed feel their current infrastructure meets all AI requirements, underscoring the need for modernization to ensure speed, trust and scalability.

Amid rising demand, 58 per cent of Indian organizations have increased infrastructure spending, with budgets growing by an average of 19 per cent in 2025, closely tracking global patterns. The report notes that enterprises must now translate their AI ambitions into measurable, sustainable impact.

Subhathra Srinivasaraghavan, Vice President, IBM India Systems Development Lab, said Indian companies are entering a decisive phase of their AI journey.

"Indian enterprises are entering a pivotal phase in their AI journeys where ambition must now translate into sustainable impact. To do that, organizations must intentionally build infrastructure that is agile, trusted and talent-led. By optimizing hybrid architectures, embedding robust governance frameworks and nurturing deeper AI skills, India can accelerate transformative outcomes across every sector, and move with confidence toward the vision of Viksit Bharat." noted Srinivasaraghavan.

The study reveals hybrid Infrastructure for AI performance, 65 per cent of the respondents say a fit-for-purpose strategy has helped optimize costs and performance, while 32 per cent said they plan to expand their hybrid AI infrastructure over the next three years.

Majority of the respondents believe on trust-by-design for AI at scale, 83 per cent agree governance is fundamental for successful AI deployment while only 4 per cent currently have robust frameworks for risk and ethical AI management.

Companies believe that talent and skills are needed for AI impact, 83 per cent are investing in training and hiring for AI roles to strengthen infrastructure modernization while 75 per cent say they remain in early stages of workforce maturity. About 43 per cent of the responding companies have established AI Centres of Excellence to deepen enterprise-wide capability.

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