Whalesbook
A recent EY-CII report reveals that 47% of Indian enterprises now have multiple Generative AI (GenAI) use cases live, with an additional 23% in pilot stages, indicating a significant move towards scaled AI implementation. Business leaders show high confidence, with 76% believing GenAI will profoundly impact their firms and 63% feeling ready to leverage it. The report notes a shift in measuring success, adopting a five-dimensional ROI model beyond cost savings. Despite this enthusiasm, AI and Machine Learning investments remain modest, with over 95% of companies allocating less than 20% of their IT budgets to AI.
A comprehensive report by EY and the Confederation of Indian Industry (CII) highlights a rapid acceleration in Generative AI (GenAI) adoption among Indian enterprises. The findings indicate that nearly half of these businesses (47%) have successfully deployed multiple GenAI use cases, moving beyond experimentation to live production environments. Furthermore, 23% are currently in the pilot phase, signalling strong momentum.
Business leaders are increasingly optimistic about the transformative potential of AI. The report states that 76% of executives believe GenAI will significantly impact their organizations, and a strong majority of 63% feel prepared to harness its capabilities effectively.
A notable shift observed is in how companies evaluate the success of AI initiatives. Enterprises are moving away from a narrow focus on cost savings and productivity gains to a more holistic five-dimensional Return on Investment (ROI) model. This expanded model includes metrics such as time saved, improvements in efficiency, overall business upside, strategic differentiation, and enhanced organizational resilience.
Mahesh Makhija, partner and technology consulting leader at EY India, emphasized the current focus: "Nearly half the enterprises already have multiple use cases in production. The focus must now move from building pilots to designing processes where humans and AI agents collaborate seamlessly. Enterprises that prioritise data readiness, model assurance, and responsible AI will shape the competitive advantage of the decade."
Despite this positive outlook and widespread adoption, investment levels in AI and Machine Learning (ML) remain relatively conservative. Over 95% of firms allocate less than 20% of their total IT budgets to AI, with only a small fraction (4%) exceeding this threshold.
Impact
This widespread adoption and growing confidence in GenAI suggest a future where Indian businesses are more innovative, efficient, and competitive. Companies that effectively leverage GenAI are likely to see improved operational performance and gain a significant edge in their respective markets. Investors should monitor companies that are at the forefront of this technological integration. Rating: 7/10.
Difficult Terms
GenAI (Generative Artificial Intelligence): A type of artificial intelligence capable of creating new content, such as text, images, music, and code, based on patterns learned from vast amounts of data.
Use Cases: Specific applications or scenarios where a technology is implemented to solve a particular problem or achieve a defined objective.
Pilot Stages: An initial phase of testing or experimentation for a new product, service, or technology in a limited or controlled environment before full-scale deployment.
ROI (Return on Investment): A financial metric used to evaluate the profitability of an investment. It measures the gain or loss generated relative to the cost of the investment.
AI/ML (Artificial Intelligence/Machine Learning): AI refers to systems designed to perform tasks that typically require human intelligence. ML is a subset of AI that enables systems to learn from data and improve their performance over time without being explicitly programmed.
IT Budgets: The financial allocation set aside by an organization for its Information Technology department's hardware, software, personnel, and services for a specific period.
