India Leads in AI Awareness but Faces Most Stalled Projects; Experts Offer Solutions 31% of Indian businesses lack access to the talent required to develop AI
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2024 has been nothing short of an artificial intelligence (AI) year, especially for India. Every sector has been buzzing with AI integration, reaching a level so significant that India has surpassed the world in AI familiarity, with 79 per cent of organizations reporting AI awareness compared to the global average of 59 per cent, according to a recent report by Qlik.
Interestingly, India is also leading globally in AI projects across planning, development, and implementation stages. However, the country is struggling with the highest number of stalled or canceled AI projects, averaging 22.2 per enterprise compared to the global average of 15.7 and 18.5 in the Asia-Pacific region.
The reason behind this is that thirty-one per cent of Indian businesses lack access to the talent required to develop AI. Additionally, 18 per cent face difficulties in rolling out developed solutions, and 26 per cent of AI decision-makers cite insufficient access to trusted data as significant obstacles.
When looking for potential solutions to curb stalled or canceled AI projects, Alankar Saxena, Co-founder and CTO of Mudrex, explained, "India has one of the most tech-savvy populations in the world." He also highlighted the Stanford AI Index 2024 report, which ranked India first in AI skill penetration with a score of 2.8, surpassing even the United States.
However, Saxena pointed out the gap between the demand for an AI workforce and AI-ready talent in India. "While AI talent in India grows at 15 per cent CAGR, the AI market surges at 25–35 per cent, widening the gap." He also noted the challenge of brain drain, stating, "Many Indian professionals prefer overseas opportunities due to better career prospects abroad."
On the other hand, Rohit Jha, CTO of ArthAlpha, believes India needs to invest in continuous education and training programs to address the talent shortage. "Partnering with academic institutions and setting up internships and fellowships can also help cultivate a pool of skilled professionals," Jha said.
According to the report, 28 per cent of surveyed enterprise leaders cited data governance challenges as a major roadblock, while 25 per cent pointed to budget constraints as a critical hurdle.
Jha emphasized the need for governance frameworks to reduce canceled projects. "Establishing clear governance frameworks that include ethical guidelines and accountability measures can mitigate risks and streamline project approval processes."
Furthermore, Jha suggested that startup players should prioritize projects based on potential impact and feasibility, while setting realistic timelines and budgets to improve resource management. He also strongly encouraged leveraging cloud technologies to reduce infrastructure costs and scale resources as needed.
Varun Babbar, Managing Director – India, Qlik, also emphasized the importance of focusing on developing AI skills, building trust in AI, and helping businesses address challenges around governance and resources. "AI is already making an impact across industries, but to fully realize its potential, organizations must tackle issues of trust, data governance, and skills shortages," he added.
