India beats Singapore, US to rank highest for AI project implementation

India heads the pack as an artificial intelligence leader, with 70 per cent of companies having AI projects up and running or in motion, according to a new report.

This is in stark contrast with the global average of 49 per cent. Additionally, the report found that 91 per cent of India-based companies will use half or more of their data to train AI models in 2024, finds the second annual Cloud Complexity Report released by NetApp.

“The world today is driven by AI, and data plays a critical role in enhancing AI capabilities,” said Puneet Gupta, Vice President and Managing Director at NetApp India/SAARC. “India is a country of humungous data sets. No surprise then, that India leads the world, and corporations are embracing the technology to further their IT agenda.”

Also Read: FPT, NVIDIA to build US$200M AI factory in Vietnam

The Cloud Complexity Report analyses the experiences of global technology decision-makers deploying AI at scale.

The report found a clear divide between artificial intelligence leaders and laggards across several areas, such as regions, industries, and company sizes. While 60 per cent of AI-leading countries such as India, Singapore, the UK, and the US have AI projects up and running or in the pilot, only 36 per cent are doing it in lagging countries (Spain, Australia/New Zealand, Germany, and Japan).

Technology leads with 70 per cent of AI projects up and running or in the pilot, while banking & financial services and manufacturing follow with 55 per cent and 50 per cent, respectively. However, healthcare (38 per cent) and media & entertainment (25 per cent) are trailing.

In terms of sizes, larger companies (with more than 250 employees) are more likely to have AI projects in motion, with 62 per cent reporting projects up and running or in the pilot, compared to 36 per cent of smaller companies (with fewer than 250 employees).

Globally, 67 per cent of companies in AI-leading countries report having hybrid IT environments, with India leading (70 per cent) and Japan lagging (24 per cent).

As much as 87 per cent of Indian companies have optimised IT environments for AI, and some lagging countries also have AI-ready IT environments: Germany (67 per cent) and Spain (59 per cent).

AI leaders are also more likely to report benefits from the technology, including a 50 per cent increase in production rates, 46 per cent in the automation of routine activities, and a 45 per cent improvement in customer experience.

The study further noted that despite the divide, there is notable progress among the laggards in preparing their IT environments for AI, but the window to catch up is closing rapidly.

A significant number of companies in AI-lagging countries (42 per cent) have optimised their IT environments for AI, including Germany (67 per cent) and Spain (59 per cent).

Also Read: Exploring the boundaries of AI: What AI can or cannot do?

Rising IT costs and ensuring data security are the two biggest challenges in the AI era, but they will not block AI progress. Instead, AI leaders will scale back, cut other IT operations, or reallocate costs from other parts of the business to fund AI initiatives. About 53 per cent of India-based companies reported being more likely to scale back or cut other parts of IT operations to make room for AI projects.

The study further revealed that 71 per cent of Indian enterprises feel cybersecurity is the biggest challenge for managing the increasing complexity of data across cloud or multi-cloud environments. This is followed by 52 per cent of tech leaders reporting increased scepticism over the cloud and 37 per cent worrying about going over budget.

The study, conducted by Savanta on behalf of NetApp, fielded 1,300 IT executives from key markets, including the US, UK, France, Germany, Spain, Australia/New Zealand, Japan, Singapore, and India.

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The article was first published on April 25, 2024

The post India beats Singapore, US to rank highest for AI project implementation appeared first on e27.

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