India is significantly increasing its focus on artificial intelligence (AI), with generative AI (GenAI) emerging as the leading force. According to the Lenovo CIO Playbook 2025, Indian businesses are expected to increase their AI investments by 2.7 times, and GenAI will account for 43% of total AI spending by next year. While many companies are still in the early stages of adoption, the report highlights strong momentum driven by a focus on long-term returns, compliance, and smarter infrastructure.
Key Insights from the Lenovo CIO Playbook 2025:
-
AI Adoption in India: Currently, 49% of Indian organizations are either evaluating or planning AI implementation within the next 12 months. Although this is slightly behind the Asia Pacific (AP) average of 56%, it still indicates steady progress with a strategic, long-term approach.
-
Shift in Business Priorities: In Asia Pacific, including India, there’s a significant shift towards governance, risk, and compliance (GRC). This area has climbed 12 spots to become the top business priority, reflecting a growing emphasis on secure and responsible AI.
-
Hybrid and On-Premise AI Infrastructure: Around 63% of Indian companies prefer hybrid and on-premise AI infrastructures over public cloud solutions. This preference is driven by the need for security and low-latency for AI workloads, with hybrid architectures offering scalability and control.
-
GenAI Use Cases: In India, sales is the leading AI function, followed by marketing and software development. Across the Asia Pacific, IT operations, cybersecurity, and software development are also seeing increased AI adoption.
-
AI Governance: While ethical concerns and bias risks are still significant challenges, AI governance is becoming a priority. Only 19% of Indian CIOs have fully implemented AI GRC policies, slightly behind the AP average of 25%. However, this area is expected to grow as awareness of regulatory frameworks increases.
-
AI-Powered PCs: More than half (53%) of Indian businesses are planning to adopt AI-powered PCs, with many early adopters reporting productivity gains.
-
Partnerships with AI Service Providers: To address challenges like complexity and skills gaps, 29% of Indian CIOs are already working with professional AI service providers, and 54% are exploring such partnerships to accelerate implementation and build internal capabilities.
Conclusion:
India's AI adoption is accelerating, driven by both GenAI advancements and a shift towards secure and compliant AI practices. The focus on hybrid and on-premise AI infrastructure, alongside the growing trend of integrating AI-powered PCs, highlights a long-term strategy for businesses to scale and optimize AI initiatives. Moreover, partnerships with external AI service providers are helping to bridge the gap in expertise, positioning India as a key player in the global AI landscape.
