9 in 10 Indian firms say cloud transformation fuelling AI adoption: Report

New Delhi, Dec 11: At least nine in 10 Indian businesses now affirm that embracing cloud transformation is a critical enabler of AI adoption, according to a report on Wednesday. Notably, 67 per cent of Indian companies are currently transitioning applications to the cloud, reinforcing the nation’s commitment to innovation and efficiency, according to an EY India report.

Most Indian companies are adopting a hybrid approach, with 80 per cent managing enterprise applications partly on the cloud and partly on-premises. This balanced strategy allows for flexibility while enabling gradual progress toward full cloud migration. “The rapid adoption of cloud technology in India is more than just a technological upgrade. It is a transformational shift that empowers businesses to reimagine their operating model, products or services,” said Abhinav Johri, Technology Consulting Partner, EY India.

By leveraging cloud to enable AI capabilities, companies can now respond faster to evolving client needs and market changes and deliver enhanced value through AI led solutions, he added. Incorporating AI and ML into business processes has become a transformative benefit, with 37 per cent of Indian companies highlighting these technologies as crucial in driving product and service innovation following cloud migration.

About 37 per cent of Indian companies cited improved innovation as the primary advantage of natively developing in the cloud, compared to developing them on-premises and migrating them to the cloud. Followed by improved monitoring of carbon emissions with 29 per cent, said the report. About 25 per cent of domestic firms, compared to 38 per cent globally, view skills and capability gaps as a primary barrier to developing cloud-native applications.

Moreover, cybersecurity and budget constraints are the most significant hurdles for them. Incorporating AI and ML into business processes has become a transformative benefit, they added. “This marks a new wave of progress, which may potentially position India as a global leader,” said Johri.