Security vulnerabilities hinder AI adoption in India: Deloitte report

'AI at a crossroads: Building trust as the path to scale' report by Deloitte Asia Pacific, which surveyed 900 senior leaders across 13 markets revealed while enthusiasm for AI is high, barriers remain

As many as 92 per cent of Indian executives view security vulnerabilities as the foremost challenge to responsible AI adoption, highlighting a pressing need for robust governance frameworks to foster trust and mitigate risks in an increasingly AI-driven landscape, according to a recent report by Deloitte.

The 'AI at a crossroads: Building trust as the path to scale' report by Deloitte Asia Pacific, which surveyed 900 senior leaders across 13 markets revealed that while enthusiasm for AI is high, significant barriers remain.

"...about 92 per cent of Indian executives identify security vulnerabilities, including hacking and cyber threats, as a primary concern in AI adoption, while 91 per cent express significant concern about the privacy risks related to sensitive data in AI usage.

"Additionally, 89 per cent highlight complexities resulting from regulatory uncertainties, citing evolving compliance requirements as a challenge towards AI integration," it said.

The urgency for effective AI governance is further underscored by the alarming statistic that over half of technology workers do not believe their workplaces are equipped to address AI-related risks.

"For Indian organisations, the imperative must be to integrate AI seamlessly into existing systems, addressing both technical and knowledge gaps to ensure sustainable adoption...the journey requires continuous upskilling and cross-functional collaboration."  "By fostering trust through robust frameworks and ethical practices, businesses can mitigate risks and unlock AI's potential to drive innovation, enhance reputation and deliver value with confidence in an increasingly AI-driven landscape," Jayant Saran, Partner, Deloitte India, said.

Despite these challenges, there is a silver lining: approximately 60 per cent of the workforce in surveyed organisations reportedly possesses the skills required for ethical and legal AI usage.

Additionally, 72 per cent of organisations are actively working to bridge the skills gap by hiring individuals with expertise in ethical AI practices. This proactive approach enhances workforce readiness while managing emerging challenges associated with responsible AI adoption.

"Indian executives are optimistic about the transformative potential of effective AI governance, with 63 per cent emphasising that it would lead to higher levels of trust in the outputs or results generated by AI solutions," the report said.