Enterprise AI returns improve, but readiness to manage risks continues to decline
Indian organisations are reporting stronger returns from artificial intelligence investments, but their ability to manage the risks and infrastructure demands of wider adoption is weakening, according to Kyndryl’s 2026 Readiness Report.
The report found that 60% of Indian organisations investing in AI and machine learning reported positive returns, up three percentage points from 2025. However, complete readiness to manage external risks fell eight percentage points to 27%.
AI adoption is moving beyond experimentation, with 85% of organisations deploying the technology in workflows beyond pilot projects. Yet scaling remains a challenge: 70% have more AI pilots than they can realistically scale, while 58% said innovation often stalls after the proof-of-concept stage. Nearly a third (31%) reported an AI investment failure in the past year.
Security is a major concern. Cyberattacks were identified as a leading external risk by 68% of Indian respondents, but only 35% said they were completely prepared to...
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