83% of Indian executives link strong governance to successful AI infrastructure

A new study by the IBM Institute for Business Value, AI Infrastructure That Endures, reveals that while Indian enterprises are accelerating investments in AI infrastructure, they continue to face a significant readiness gap. Even as AI becomes central to business transformation, only 1 in 10 Indian business leaders say their current infrastructure meets all their AI needs, underscoring the need to modernise IT foundations for speed, scale and trust.

The study also highlights strong investment momentum. 58% of Indian organisations report increased infrastructure investment due to growing AI demand, with budgets rising by an average of 19% in 2025, mirroring global trends. Yet, despite this acceleration, organisations must continue investing in the non-negotiables for AI readiness and thoughtfully lead their industry transformation.

Subhathra Srinivasaraghavan, Vice President, IBM India Systems Development Lab, said “Indian enterprises are entering a pivotal phase in their AI journeys where ambition must now translate into sustainable impact. To do that, organisations must intentionally build infrastructure that is agile, trusted and talent-led. By optimising hybrid architectures, embedding robust governance frameworks and nurturing deeper AI skills, India can accelerate transformative outcomes across every sector, and move with confidence toward the vision of Viksit Bharat.”

The non-negotiables for AI readiness:

Hybrid Infrastructure for AI Performance

• 65% agree that implementing a ‘fit-for-purpose’ strategy for AI infrastructure has helped optimise costs and performance.
• 32% plan to expand their hybrid AI infrastructure approach over the next three years.

Trust-by-design for AI at Scale

• 83% agree that effective AI governance is essential for successful AI infrastructure deployment.
• However, only 4% currently have robust frameworks for managing AI-related risks and ensuring ethical AI practices.

Talent & Skills for AI Impact

• 83% are investing in training and recruitment for AI-related roles to support infrastructure modernisation.
• 75% remain in the early phases of workforce maturity for AI roles.
• 43% have established an AI Center of Excellence (CoE) to strengthen AI capability and infrastructure readiness.