India’s enterprise AI investment rises 119%, but only 22% have governance processes: ServiceNow

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Enterprise AI investment in India grew 119% over the past year, above the global growth rate of 110%, but only 22% of Indian enterprises have AI testing, auditing and risk-assessment processes in place, according to ServiceNow’s Enterprise AI Maturity Index 2026.

The report found that AI accounts for 16.6% of the average IT budget among Indian organisations, a figure projected to rise to 21.3% by 2027.

While 54% of organisations are deploying AI agents, only 11% have moved to autonomous workflows, indicating a more cautious approach to allowing AI systems to operate independently.

Transparency and the potential for misinformation were cited as a key consideration by 60% of respondents, followed by regulatory and compliance complexity at 55% and data privacy and security at 50%.

The research also found that 74% of organisations identified data accuracy, access and management as areas requiring improvement for AI, while 56% pointed to legacy...

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