Cisco’s AI Readiness Index Reveals Only 26% of Indian Companies Fully Prepared for AI Revolution

Merely 26% of Indian enterprises are fully prepared to deploy and leverage AI-powered technologies effectively, according to Cisco’s inaugural AI Readiness Index.

The AI Readiness Index was developed in response to the escalating adoption of AI, marking a generational shift impacting almost every facet of business and daily life. Despite the acknowledgment that AI will significantly impact business operations (93% of respondents), the report underscores new challenges surrounding data privacy and security. Notably, 73% of respondents cited challenges in leveraging AI alongside their data, primarily due to data existing in silos across their organizations.

On a positive note, the study highlights proactive measures taken by Indian companies to prepare for an AI-centric future. Key findings indicate that 95% of organizations already have a robust AI strategy in place or are in the process of developing one. Moreover, 86% of organizations fall into the categories of Pacesetters or Chasers, signifying a considerable level of focus from C-Suite executives and IT leadership. The urgency to deploy AI technologies has surged in the past six months, with IT infrastructure and cybersecurity topping the priority list for AI deployments.

Liz Centoni, Executive Vice President and General Manager, Applications and Chief Strategy Officer at Cisco, stressed the importance of assessing investments to ensure infrastructure can support AI workloads effectively. She emphasized the need for organizations to observe how AI is being used to ensure ROI, security, and responsibility.

Key Findings from the AI Readiness Index:

• Urgency: Three-quarters of respondents in India believe they have a maximum of one year to implement an AI strategy before their organization incurs significant negative business impact.
• Strategy: 86% of organizations are either Pacesetters or Chasers, with only 1% identified as Laggards. Additionally, 95% of organizations have a highly defined AI strategy or are in the process of developing one.
• Infrastructure: While 95% of businesses globally are aware that AI will increase infrastructure workloads, only 39% of organizations in India consider their infrastructure highly scalable.
• Data: Data readiness for AI operations is a weak point, with 73% of respondents experiencing siloed or fragmented data in their organizations.
• Talent: There’s a digital divide concerning AI skills, with 20% of organizations reporting that employees are either unwilling to adopt AI or outright resistant.
• Governance: 18% of organizations report not having comprehensive AI policies in place, highlighting the need for attention to factors like data privacy, sovereignty, and compliance.
• Culture: Change management plans are lacking in 18% of companies, impacting the development of comprehensive plans for embracing internal AI changes.

The Cisco AI Readiness Index, based on a survey of over 8,000 business and IT leaders across 30 markets, assessed organizations across six key pillars: strategy, infrastructure, data, talent, governance, and culture. The study categorizes companies into Pacesetters, Chasers, Followers, and Laggards based on their overall readiness scores.