As artificial intelligence becomes all-pervasive transforming a cross-section of verticals, businesses and organisations are faced with a few roadblocks in the adoption of AI. On one hand, they are facing a severe shortage of manpower, on the other they face the questions of cybersecurity challenges, privacy risks to sensitive data and regulatory uncertainty.
The fact that a large number of organisations are forced to either put a pause button on rolling out AI projects or shelving them due to lack of skilled manpower reflect the seriousness of the problem.
Qlik, a data integration and analytics company, said that one in five businesses in India have stalled their AI projects due to lack of skills gap, governance challenges and issues related to trust.
“About 20 per cent of businesses report having 51 to over 100 AI projects stalled at the planning stage, while 12 per cent have scrapped or halted projects entirely. To address these hurdles, Indian companies are increasingly adopting ready-made AI solutions to expedite implementation and achieve measurable ROI,” a study by the company observed.
The survey, which covered over 4,200 top executives and AI decision-makers, examined AI adoption challenges and opportunities, including attitudes toward ‘buy-to-build’ deployment strategies. It covered 19 markets and focused on key sectors such as IT, financial services, manufacturing, retail, and healthcare.
The research highlights critical gaps preventing AI adoption in India. It reports that 31% of Indian businesses lack the talent required to develop AI, 18% face difficulties in rolling out developed solutions and 26% of AI decision-makers cited insufficient access to trusted data as an additional obstacle.
The study reveals that 41% of senior managers and 38% of less senior employees lack confidence in AI, while 16% of businesses report concerns about customer trust in AI-driven systems. About 57% of respondents indicated that these trust issues have led to reduced AI investments.
Security vulnerabilities
Meanwhile, another global study by Deloitte Asia Pacific found that about 92 percent of Indian executives identify security vulnerabilities, including hacking and cyber threats, as a primary concern in AI adoption, while 91 percent express significant concern about the privacy risks related to sensitive data in AI usage.
“Additionally, 89 per cent highlight complexities resulting from regulatory uncertainties, citing evolving compliance requirements as a challenge towards AI integration. These findings highlight the need for a robust cybersecurity framework, privacy protections and clear regulations to manage risks and foster trust in AI adoption,” the survey said.
Based on a survey of senior leaders across the Asia-Pacific region, the report revealed that less than one in ten organisations currently have governance structures necessary to ensure trustworthy AI.
Integration challenges
Nearly 50 per cent of the surveyed leaders cited technology integration difficulties, reflecting struggles to align AI with existing systems. About 35 per cent highlighted insufficient knowledge of AI’s potential, emphasising the need for upskilling and awareness. Additionally, 32 per cent of Indian executives identified regulatory, legal, ethical and associated risks as key barriers, pointing to the critical importance of robust frameworks and guidance.
“Effective AI governance is not just about regulation or compliance. It is about fostering innovation while ensuring accountability and transparency and, therefore, demands a shift to proactive risk management. Trust must be cultivated by enhancing resilience against security vulnerabilities and privacy risks while adapting to evolving regulations,” said Jayant Saran, Partner, Deloitte India.
On the other hand, 60 per cent of the workforce in surveyed organisations reportedly possess the skills and capabilities required to use AI solutions ethically and legally. About 72 per cent of organisations are actively addressing the skills gap by hiring individuals equipped with the expertise to ensure the ethical and compliant use of AI.
