Indian enterprises are embracing AI at a rapid pace — and strengthening privacy in tandem. A new study titled The AI Privacy Equation: India Market Report, conducted by Arion Research LLC and commissioned by Zoho, finds that 93% of Indian organisations have adopted AI, and 71% tightened their privacy frameworks after doing so. The report highlights India’s strong governance maturity, with 61% of organisations now operating AI ethics committees, reflecting deliberate efforts to embed responsible AI practices.
According to Ramprakash Ramamoorthy, Director – AI Research, Zoho Corp, organisations are not making superficial changes. He noted that teams are integrating guardrails, ethics reviews, and data minimisation directly into engineering workflows, giving India a credible foundation for responsible AI at scale and reinforcing Zoho’s own privacy-first strategy.
The study found an advanced understanding of privacy and ethical implications across Indian businesses. An overwhelming 90% demonstrate strong awareness of AI-related privacy concerns, and 92% have dedicated privacy teams or officers — a figure that exceeds global averages. Many organisations are proactively identifying high-risk areas such as customer data stored on the cloud, biometric data usage, and training AI systems on customer interactions, and are implementing mitigation strategies accordingly. Privacy budgets have also expanded, with 65% allocating more than one-fifth of their IT spend toward data protection.
Ethical preparedness is rising as well, with many companies embracing data minimisation, frequent privacy audits, and structured governance frameworks. Michael Fauscette, CEO & Chief Analyst at Arion Research, said the findings counter the assumption that privacy slows AI adoption. Instead, strong data governance is helping enterprises deploy AI faster by reducing risk and building stakeholder trust.
This focus on privacy accompanies India’s accelerating AI maturity. The study shows that 46% of Indian organisations have already achieved widespread or advanced AI integration, placing the country among global frontrunners. AI is now embedded across multiple business functions, including software development, customer service, product development, and decision support, underscoring its role as a transformative rather than a niche technology.
However, challenges persist. Organisations cite poor data quality, regulatory complexities, and limited technical expertise as major barriers. Privacy and security concerns also remain significant. The workforce gap is another area requiring attention, with enterprises highlighting the need for stronger in-house technical talent and upskilling in areas such as AI literacy, data analysis, prompt engineering, and machine learning.
Overall, the study positions India as a market that blends rapid AI adoption with disciplined privacy and ethical oversight. This balanced approach offers a compelling model for responsible AI development globally. With growing governance maturity, expanding talent initiatives, and increasing demand for clear AI-specific regulations, India is emerging as a leader demonstrating that privacy can be a strategic advantage — not a constraint — in scaling AI responsibly.
