New Delhi: With an anticipated annual growth rate of 35%, AI (artificial intelligence) spending in India is projected to hit a whopping $9.2 billion by 2028, according to a report on Tuesday.

New IDC ( International Data Corporation) research highlighted in a Qlik report emphasises that maximising AI’s impact needs immediate attention to data quality, governance, and cloud migration strategies.

Although 51% of Indian companies host AI in the cloud, inadequate data quality remains a significant challenge.

According to the report, data quality has emerged as a major obstacle in India, where 54% of organisations reported it as a challenge compared to Australia and ASEAN (40%) and the APAC average (50.4%).

Furthermore, the report revealed that 62% of Indian organisations require improved data governance and privacy. India is also facing a big challenge with AI data bias (28%) compared to ASEAN (21.8%) and Australia (20%).

To tackle these challenges, Indian enterprises are focusing their investments in data integration, ML deployment platforms, and analytics to develop AI-ready data strategies. Strong data integrity, transparency, and compliance are essential for successful AI adoption.

Varun Babbar, Vice President, India, Qlik said, “Indian organisations see cloud adoption as a critical step toward AI success”.

He said, “To scale AI-driven innovation, businesses need a strong, scalable data infrastructure that supports high-performance AI applications”.

According to the IDC InfoBrief, India’s adoption of Generative AI is significant, with 36% of enterprises already using it and another 46% intending to invest in the next one to two years. In terms of advanced AI capabilities, India (20%) aligns with Australia and New Zealand but lags slightly behind ASEAN (27%).

Deepika Giri, AVP, Big Data Analytics, Blockchain, and Web3 Research, IDC Asia/Pacific said, “GenAI is transforming industries in India — from compliance in retail to fraud prevention in finance and predictive maintenance in manufacturing.”

She stated that trusted data, strong governance, and scalable infrastructure are essential requirements for organisations to completely and responsibly leverage AI’s potential.

Source: https://www.socialnews.xyz/2025/04/15/ai-spending-in-india-set-to-reach-9-2-billion-by-2028-report/