The article argues that while 2025 looked like a breakout year for artificial intelligence in India, the hype hasn’t fully translated into scalable business value — especially within large enterprises. AI tools became widespread among individual users, developers, and creators, reshaping how people work, write, design, and innovate. However, many companies are still struggling to convert early experimentation and investment into measurable impact on growth, profitability, or strategic advantage, revealing a gap between enthusiasm and real value.
Surveys and industry reports highlighted in the article show that while the vast majority of organisations are using some form of AI, only a small fraction have scaled these use cases effectively. Most enterprises continue to treat AI as a way to improve efficiency or reduce costs rather than as a tool for deep transformation. Experts cited three core challenges: failure to rethink business domains, prioritising technology adoption over workflow redesign, and insufficient organisational change such as governance and upskilling, all of which hinder AI’s potential to deliver significant returns.
Because measurable returns from AI remain limited, businesses have reshaped cost structures, including workforce adjustments and layoffs in some technology sectors, where automation and AI tools are increasingly used to streamline operations. This trend underscores the tension between using AI as a cost lever instead of a growth engine and highlights why many firms are cautious about fully committing to AI strategies that extend beyond internal pilots or proofs of concept.
Looking ahead, the article suggests that 2026 could be pivotal for AI adoption in India if organisations focus more on integrating AI into core systems, aligning data and workflows, and prioritising growth‑oriented use cases such as new product development and enhanced customer experiences. Additionally, India’s growing emphasis on sovereign AI capabilities, major investments from global tech firms, and initiatives to build domestic data and compute infrastructure could lay the groundwork for more meaningful impact in the coming year.
