India's artificial intelligence (AI) adoption rate is lagging behind the rest of the world, with only 15% of small and medium-sized enterprises (SMEs) leveraging AI technology. According to the Bangalore Chamber of Industry and Commerce (BCIC), high implementation costs, lack of technical skills, and fear of disruption are key factors holding back digital transformation.
Many SMEs struggle to invest in AI infrastructure and talent, and there's a need for more awareness about AI benefits and skilled professionals to implement AI solutions. Some businesses are also hesitant to adopt AI due to concerns about job displacement and process disruption. Despite these challenges, the Indian government is taking steps to promote AI adoption.
The Union Budget 2025 has allocated ₹20,000 crore for research and development, including ₹500 crore for a new Centre of Excellence in AI for education. The IndiaAI mission has also received a significant funding boost to ₹2,000 crore for FY26, aiming to integrate AI into critical sectors like agriculture, healthcare, and governance.
The government is also focusing on skill development programs to equip young Indians with future-ready expertise. Microsoft India is partnering with the government to train 5 lakh people by 2026, with a focus on AI skills development. Five new National Centres of Excellence for skilling will be set up to support this initiative.
With the right approach, India can unlock the potential of AI and drive economic growth and innovation. The government's initiatives and investments in AI research and development are steps in the right direction, and it's essential to continue promoting AI adoption and skill development to stay competitive in the global economy.
