AI adoption surges in Indian workplaces, but governance gaps remain: Report

New Delhi: Artificial intelligence is rapidly becoming a part of everyday work culture in India, with 86 per cent of employees now using AI tools at work. However, many organisations are still struggling to measure clear business returns and establish strong governance systems, according to a new report by ISACA.

The report revealed that only 35 per cent of Indian employees believe AI investments have met or exceeded expectations in terms of return on investment (ROI), though this figure remains higher than the global average of 22 per cent.

According to the findings, 49 per cent of organisations in India now have a formal and comprehensive AI policy in place, a notable rise from 32 per cent in 2025 and also higher than the global average of 38 per cent.

Despite this progress, gaps continue to exist. Around 23 per cent of organisations said they operate with only limited AI policies, while 20 per cent admitted they still have no active AI policy at all.

The report, based on responses from more than 3,400 digital trust professionals worldwide — including 265 participants from India — noted that while AI adoption is accelerating, governance and operational preparedness have not kept pace.

When asked about AI returns, 21 per cent of Indian respondents said it was still too early to assess ROI, another 21 per cent reported only limited returns so far, while 18 per cent said they were unaware of any measurable gains.

Indian professionals are mainly using AI to improve productivity (56 per cent), automate repetitive work (55 per cent), generate written content (51 per cent), and analyse large volumes of data (42 per cent).

The report also highlighted the growing importance of AI skills in the workplace. About 82 per cent of respondents said AI expertise is now crucial for their profession. Meanwhile, 35 per cent of organisations said they currently provide AI training to all employees, compared to 22 per cent last year.

Hiring demand linked to AI is also expected to rise. Nearly 57 per cent of Indian respondents believe their organisations will increase AI-related hiring over the next year, up from 46 per cent in 2025.

Commenting on the findings, Keith Bloomfield-DeWeese, Senior Manager of AI Product Development at ISACA, said organisations are under increasing pressure to demonstrate AI’s business value, but many are still in the early stages of understanding its long-term impact.

He noted that successful AI adoption depends not just on technology, but also on sustained investment in people, processes, and governance frameworks.

WIth inputs from IANS