India’s AI shift from pilots to performance; 47% of enterprises have multiple AI use cases live in production: EY-CII Report

• 91% of leaders reported that speed of deployment was the single biggest factor driving their buy vs build decisions
• Operation (63%), customer service (54%) and marketing (33%) are the top three business functions prioritized for GenAI use cases over next 12 months
• 76% of Indian business leaders believe GenAI will have a significant business impact
• As AI transformation deepens, Indian enterprises are rewiring their processes with agentic AI frameworks for enterprise automation

New Delhi, 16 November 2025: India’s enterprise AI landscape has reached an inflection point. As per the EY-CII latest report, Is India ready for Agentic AI? The AIdea of India: Outlook 2026, nearly half of Indian enterprises (47%) now have multiple Generative AI (GenAI) use cases live while 23% are in pilot stage - marking a decisive shift from pilots to performance. Indian enterprises are demonstrating strong confidence by embedding AI into core business workflows to deliver measurable results. Notably, 76% of business leaders believe that GenAI will have a significant business impact, and 63% feel ready to leverage it effectively.

Mahesh Makhija, Partner and Technology Consulting Leader, EY India, said, ““Our survey shows that corporate India has moved beyond experimentation. Nearly half the enterprises already have multiple use cases in production.  For enterprises, the focus must now move from building pilots to designing processes where humans and AI agents collaborate seamlessly. Enterprises that prioritize data readiness, model assurance, and Responsible AI will shape the competitive advantage of the decade.”

Chandrajit Banerjee, Director General, CII, said, “The coming decade will be defined not only by the speed of AI adoption, but by the quality of its integration into India’s economic and social fabric. This transformation has the potential to add value to India’s growth story. While challenges around data readiness, governance and measurement persist, India’s AI journey is moving from pilots to performance.”

The investment paradox

Despite optimism, AI and ML investments remain modest in scale. More than 95% of organizations allocate less than 20% of their IT budgets to AI. Only 4% have crossed the 20% threshold, highlighting that while belief is high, funding for scaled AI transformation is still conservative. There is clear imbalance between conviction and commitment, which is becoming a defining factor in how quickly enterprises extract measurable returns from AI.

As organizations operationalize AI, the question of return on investment has taken center stage. The report highlights that enterprises are moving away from measuring AI success purely through cost reduction and productivity metrics, toward a five-dimensional ROI model encompassing time saved, efficiency gains, business upside, strategic differentiation, and resilience.

Speed of deployment: A key decision factor

Speed has become the new metric of competitive advantage in AI adoption. 91% of business leaders identified rapid deployment as the single biggest factor influencing their “buy versus build” decisions, underscoring a growing impatience to translate innovation into impact. Over the next 12 months, organizations are expected to focus their GenAI investments on operations (63%), customer service (54%), and marketing (33%) reflecting a clear shift from experimentation to embedding AI in core business functions that directly drive efficiency, experience, and growth.

OEMs and Startups central to execution

Partnerships with Original Equipment Manufacturers (OEMs) and startups are becoming central to GenAI execution strategies, highlighting the growing importance of the startup ecosystem. Nearly 60% of organizations now co-innovate with startups, recognizing their role in driving innovation and speed. With 78% adopting hybrid models. Enterprises are moving away from in-house-only approaches to leverage the agility and experimentation that startups bring — making them essential for staying competitive in the GenAI race.

New workforce pyramid

64% of enterprises report selective workforce transformation in standardized tasks, but at the same time highlighted a persistent shortage of skilled AI talent (59%). While mid-office and innovation-led roles are expanding rapidly, enterprises are rebalancing their operating models around AI, creating what the report calls “AI-first architectures of work” a new working model where humans and machines collaborate to elevate decision-making, speed and precision.

Notes to Editors

About report

EY conducted a comprehensive survey to assess the impact and adoption of GenAI and Agentic AI across the Indian enterprise landscape. The study covered 200 organizations spanning over 20 industries, including government bodies, public sector undertakings, start-ups, Indian enterprises, global capability centres (GCCs), and the Indian arms of multinational corporations. Responses were gathered from C-suite executives and senior leaders, offering a strategic perspective on how Gen AI is influencing both core operations and support functions. The survey design and analysis were guided by EY’s proprietary frameworks, analytical tools, and sectoral expertise; refined through years of client engagement and industry research.

About EY

EY is building a better working world by creating new value for clients, people, society, and the planet while building trust in capital markets. Enabled by data, AI, and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow. EY teams work across a full spectrum of services in assurance, consulting, tax, strategy, and transactions. Fueled by sector insights, a globally connected, multidisciplinary network, and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.

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