IBM study finds AI ambitions rising amid infrastructure gaps

A new study by the IBM Institute for Business Value, AI Infrastructure That Endures, indicates that although Indian enterprises are increasing investment in AI infrastructure, a substantial readiness gap remains. While AI is becoming central to business transformation, only one in ten Indian business leaders state that their existing infrastructure meets all their AI requirements. The findings point to a continued need for modernising IT foundations to support speed, scalability, and trust.

The study records strong investment momentum. Fifty-eight per cent of Indian organisations report higher infrastructure spending driven by rising AI demand, with budgets expected to grow by an average of 19% in 2025, reflecting global patterns. Despite this, sustained investment in core readiness areas is still required for organisations to progress effectively.

According to Subhathra Srinivasaraghavan, Vice President of the IBM India Systems Development Lab, Indian enterprises are entering a crucial stage in their AI adoption, where ambition must evolve into long-term impact. She notes that achieving this will require building infrastructure that is agile, dependable, and supported by strong technical expertise. Optimising hybrid architectures, strengthening governance frameworks, and developing deeper AI skills are identified as essential steps for enabling transformative outcomes across sectors.

The study highlights three areas that remain essential to AI readiness. Many organisations see value in adopting hybrid infrastructure, with a majority reporting improvements in cost and performance, and almost a third planning to expand this approach in the coming years.

Trust remains a critical concern: although most leaders recognise the importance of effective AI governance, only a small proportion have established robust systems for managing AI-related risks and ensuring ethical use.

Talent development also continues to lag, with most organisations still in the early stages of building an AI-capable workforce, despite increased investment in training and recruitment. A growing number have set up AI Centres of Excellence to strengthen capability and support infrastructure development.