Indian enterprises lead in AI adoption but face information readiness gaps

OpenText has released findings from a global report titled “The Challenges to Ensuring Information is Secure, Compliant and Ready for AI.” The study reveals that while Indian enterprises are among the fastest adopters of generative AI, challenges related to information readiness are hindering their ability to secure, govern, and scale AI effectively across the business.

The report, developed in collaboration with the Ponemon Institute, an independent research firm specialising in information security and privacy, surveyed nearly 1,900 senior IT and security leaders worldwide, including 337 respondents in India.

According to the study, 48% of Indian enterprises have already integrated AI into their IT and business strategies, placing them among the global leaders in adoption. However, only 15% of Indian organisations feel confident in measuring the return on investment (ROI) from securing and managing the data that supports these AI initiatives.

Indian companies are also more likely than global peers to prioritise digital transformation (54% vs. 44% globally), reflecting a strong alignment between digital ambition and AI uptake. Nonetheless, the increasing complexity of information, driven by unstructured data, security risks, and weak governance frameworks, continues to pose significant challenges for enterprises aiming to scale AI responsibly.

AI ambition meets governance and security challenges 

The report also indicates that Indian respondents are more attuned to the risks associated with AI. For example, 46% identified bias in AI models as a key concern, compared to 32% globally. Privacy risks were cited by nearly half of Indian leaders. Despite these concerns, adoption of more advanced AI capabilities such as agentic AI is on the rise, with 18% of organisations already deploying such tools and another 20% planning to do so within six months.

When it comes to generative AI, India leads in mission-critical applications. Approximately 46% of Indian organisations are using it for security operations and 44% for business reporting, both figures significantly above the global average. This suggests that generative AI is being directly embedded into core operational and strategic functions.

Cybersecurity remains a major area of concern. More than half of Indian organisations reported experiencing a data breach or cyber incident in the past two years, with an average of three incidents each. Ransomware and insider threats continue to be the most commonly cited risks, even as organisations improve their ability to monitor hybrid IT environments.

These issues are not unique to India; enterprises worldwide are confronting similar challenges. As Shannon Bell, Chief Digital Officer at OpenText, noted: “AI is mission-critical, but most organisations are not yet equipped to support it. Without trusted, well-governed information, AI cannot fulfil its potential.”

Despite a strong focus on digital transformation, information governance remains a key area of weakness in India’s AI preparedness. Only 41% of Indian leaders expressed confidence in measuring ROI on information security investments, a figure slightly below the global average. Nonetheless, 55% of Indian organisations expect to demonstrate ROI within 6–12 months, indicating pressure from boards and financial leaders to deliver measurable outcomes quickly.

In addition to governance challenges, generative AI adoption is also being slowed by concerns such as copyright infringement, regulatory uncertainty, limited internal expertise, budget constraints, and a shortage of skilled AI professionals.

To fully realise the benefits of AI, Indian enterprises must prioritise strengthening information governance. This includes investing in cybersecurity measures to address both external and internal threats, as well as building digital infrastructure capable of supporting emerging AI workloads.