47% of Indian Enterprises Now Have Live AI in Production: The Shift From Pilots to Performance

India’s artificial intelligence landscape has reached a critical inflection point. For years, enterprises across the country have experimented with generative AI through pilots and proof-of-concept projects. But a recent comprehensive report reveals that this era of experimentation is definitively over. Nearly half of Indian enterprises—47% to be precise—now have multiple generative AI use cases running live in production environments, marking a decisive pivot from pilots to performance.[1]

This transformation, detailed in the EY-CII report “Is India ready for Agentic AI? The AIdea of India: Outlook 2026,” signals that corporate India has moved beyond the hesitation phase. The question is no longer whether AI works, but how to scale it effectively, integrate it responsibly, and extract measurable business value from it.

The Inflection Point: From Experimentation to Execution

The journey from pilot to production is never straightforward. Organizations typically spend months—sometimes years—testing AI solutions in controlled environments before committing to enterprise-wide deployment. The fact that 47% of Indian enterprises have crossed this threshold is significant for several reasons.

First, it demonstrates genuine confidence in AI technology. These organizations have moved past the initial skepticism and proof-of-concept phase. They’ve validated that AI can deliver tangible business outcomes, whether through improved customer service, operational efficiency, risk management, or revenue generation.

Second, it reflects the maturation of India’s AI infrastructure and talent ecosystem. The country now has the technical capabilities, cloud infrastructure, and skilled professionals needed to support production-grade AI systems. India ranks among the top four countries globally in AI skills, capabilities, and policies, according to the Stanford AI Index, and is the second-largest contributor to AI projects on GitHub.[2]

Third, it indicates a fundamental shift in enterprise mindset. The focus has moved from building pilots to designing processes where humans and AI agents collaborate seamlessly. This is what industry leaders call the transition to “AI-first architectures of work.”

The Numbers Tell a Compelling Story

The EY-CII report surveyed 200 organizations across more than 20 industries, including government bodies, public sector undertakings, startups, Indian enterprises, global capability centers, and multinational corporations. The findings paint a picture of rapid AI adoption:

47% of enterprises have multiple GenAI use cases live in production—these are not theoretical implementations but active systems generating business value.

23% are in pilot stage—still testing and validating before full rollout.

93% of Indian businesses expect positive returns on AI investments within three years, according to the SAP Value of AI Report 2025.[3] This high confidence level is driving continued investment despite economic uncertainties.

However, the report also reveals a critical gap: more than 95% of organizations allocate less than 20% of their IT budgets to AI. Only 4% have crossed the 20% threshold. This imbalance between conviction and commitment is becoming a defining factor in how quickly enterprises can extract measurable returns from their AI initiatives.

Workforce Transformation and the AI Skills Gap

One of the most interesting findings is the impact on the workforce. The report shows that 64% of enterprises are implementing selective workforce transformation in standardized tasks, but this comes with a caveat: 59% report a persistent shortage of skilled AI talent.[1]

This paradox—simultaneous automation and talent shortage—is driving a fundamental restructuring of how organizations work. Mid-office and innovation-led roles are expanding rapidly as enterprises rebalance their operating models around AI. The result is what the report describes as “AI-first architectures of work,” where humans and machines collaborate to elevate decision-making, speed, and precision.

India’s government is responding to this challenge through the IndiaAI Mission, approved by the Cabinet in March 2024 with a budget outlay of ₹10,371.92 crore over five years.[2] The mission includes multiple initiatives to build AI skills, from AI Data Labs to National Centres of Excellence for Skilling. As of August 2025, approximately 8.65 lakh candidates have enrolled in emerging technology courses, with 3.20 lakh specifically training in AI and Big Data Analytics.

The Startup Ecosystem: A Critical Enabler

An often-overlooked factor in India’s AI production shift is the role of startups. The EY-CII report reveals that nearly 60% of organizations now co-innovate with startups, recognizing their role in driving innovation and speed.[1] With 78% adopting hybrid models, enterprises are moving away from in-house-only approaches to leverage the agility and experimentation that startups bring.

This partnership model is becoming essential for staying competitive in the GenAI race. Startups like Sarvam AI are translating advanced AI research into practical governance solutions. In partnership with the Unique Identification Authority of India (UIDAI), Sarvam AI is using generative AI to make Aadhaar services smarter and more secure. In April 2025, the company received approval to build India’s Sovereign LLM Ecosystem, an open-source model designed to enhance public service delivery and promote digital trust.[2]

Data Readiness and Governance: The Real Challenges

While the production deployment numbers are impressive, the report identifies persistent challenges that could slow further adoption. Data readiness, governance, and measurement remain problematic areas for many organizations.

According to an IBM report from November 2025, 83% of Indian executives recognize that effective governance is key to successful AI infrastructure.[4] Yet many organizations struggle to implement it. Additionally, 58% of Indian organizations report increased infrastructure investment due to growing AI demand, with budgets rising by an average of 19%.[4]

These investments are necessary but not sufficient. Organizations must also ensure that their data is clean, representative, and ethically sourced. They need robust model assurance processes and clear frameworks for responsible AI deployment. Enterprises that prioritize these elements will shape the competitive advantage of the decade.

The Agentic AI Frontier

As enterprises mature in their GenAI capabilities, attention is turning to the next frontier: agentic AI. Nearly half of Indian enterprises are now testing agentic AI solutions, signaling a major shift in how organizations approach automation and decision-making.[5]

Agentic AI systems can operate with greater autonomy, making decisions and taking actions within defined parameters without constant human intervention. According to the 2025 Workforce Skills Report by ServiceNow, agentic AI will redefine 10.35 million Indian jobs in the next five years.[5] This transformation will require significant upskilling and rethinking of job roles, but it also creates opportunities for workers to move into higher-value, more strategic positions.

India’s Global AI Leadership Trajectory

The shift from pilots to production is not just a domestic story—it’s part of India’s broader emergence as a global AI leader. The country’s strong STEM workforce, expanding research ecosystem, and growing digital infrastructure position it to harness AI for economic growth and societal progress.

India’s government has articulated a clear vision: “Making AI in India and Making AI Work for India.” This dual focus—on building indigenous AI capabilities while ensuring practical applications—is driving the country’s AI strategy. From Centres of Excellence in healthcare, agriculture, and sustainable cities to AI Data Labs across the country, India is building a comprehensive ecosystem that connects research, entrepreneurship, and practical deployment.[2]

The IndiaAI Startup Financing pillar, which launched the IndiaAI Startups Global program in March 2025, is helping Indian startups expand into international markets, including Europe. This global expansion will further strengthen India’s position in the worldwide AI economy.

What This Means for Your Organization

If your organization is still in the pilot phase, the 47% figure should serve as both inspiration and a call to action. The market is moving faster than many expected. Competitors who have deployed live AI use cases are likely gaining operational advantages, whether through improved customer experiences, faster decision-making, or reduced costs.

However, moving to production is not about speed alone. The organizations that will thrive are those that combine rapid deployment with thoughtful governance, data readiness, and responsible AI practices. They’re the ones investing in talent development, partnering with startups for innovation, and building AI-first operating models that leverage both human creativity and machine efficiency.

The era of AI pilots is ending. The era of AI performance is beginning. The question now is not whether your organization will deploy AI in production, but when—and whether you’ll be among the leaders or followers in this transformation.

Conclusion

India’s enterprise AI landscape has fundamentally shifted. With 47% of organizations now running multiple generative AI use cases in production, the country has moved decisively from experimentation to execution.[1] This transformation reflects years of investment in infrastructure, talent development, and policy support. Yet challenges remain: data readiness, governance frameworks, and the persistent shortage of skilled talent will determine which organizations can scale their AI initiatives successfully.

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. Organizations that prioritize data readiness, model assurance, and responsible AI practices will shape the competitive advantage ahead. For India, this AI revolution represents an opportunity to add significant value to its growth story and move closer to the vision of Viksit Bharat by 2047.