New Delhi, March 22 Indian companies are surpassing their global counterparts in the large-scale adoption of Artificial Intelligence, with most organizations expecting to increase their AI spending next year, according to a report by Deloitte.
However, this rapid deployment contrasts with a significant capability gap, as India reports lower levels of specialized AI expertise compared to the global average.
The 'State of AI in the Enterprise' report for 2026 revealed that Indian firms are advancing past trials to lead global peers in large-scale AI adoption across key functions.
"...Large-scale deployment is strongest in Product Development (62 per cent), Strategy and Operations (56 per cent), Marketing & Sales (55 per cent) and Supply Chain (48 per cent), signaling that AI is increasingly embedded into functions that drive growth, efficiency, and competitive advantage.
"40 per cent of Indian respondents report significant or full usage, compared with a global average of approximately 28 per cent, indicating that Indian organizations are not only piloting AI, but are increasingly operationalizing it to unlock near-term productivity and business outcomes," Deloitte said.
The 'State of AI Insights from India' is part of Deloitte's global 'State of AI in the Enterprise' survey. The India edition captures responses from over 200 business and technology leaders.
The report noted that 94 per cent of Indian organizations expect their AI budgets to increase over the next year.
Despite the aggressive rollout, there is a significant capability gap. Deloitte observed that only 0 to 4 per cent of Indian companies possess a high level of AI expertise, lagging behind the global average of 2 to 8 per cent.
The report lists regulatory and compliance demands as the leading obstacle for AI integration (39 per cent), followed by resistance to change (34 per cent).
Organizations report relatively lower pressure from cost (12 per cent) and infrastructure (5 per cent) constraints, indicating that governance readiness and operating-model change are the more immediate limiting factors for scale.
Even with these obstacles, Indian organizations expect tangible near-term value from AI. Nearly all respondents anticipate productivity improvements, with 97 per cent expecting productivity to increase.
"Indian enterprises are entering a defining phase in their AI journey, where ambition is translating into enterprise-wide execution. The momentum we are seeing reflects a strategic shift from experimentation to embedding AI into the fabric of how organizations create value and compete.
"The next chapter will be shaped less by access to technology and more by the ability to build institutional capability, strengthen governance, and align people with new ways of working. Organizations that invest in trust and skills today will be better positioned to convert early gains into sustained advantage," said S Anjani Kumar, Partner, Deloitte India.