India rides the Agentic AI wave as more than 80 percent of businesses explore its potential: Deloitte’s State of GenAI report

Despite the rapid adoption and enthusiasm around Agentic AI and GenAI, organisations face significant hurdles in scaling their initiatives. The survey found that while many businesses are experimenting with AI, only 29 percent reported being able to fully scale up to 30 percent of their AI proofs of concept, with the rest faring even lower. Additionally, AI adoption within workflows remains inconsistent, with 61 percent of organisations reporting that only up to 40 percent of employees with access to GenAI tools actively use them. Concerns around errors with real-world consequences (36 percent), bias and hallucinations (30 percent) and data quality (30 percent) continue to slow down deployment. However, most organisations expect to overcome these challenges within 12–24 months, demonstrating confidence in AI’s long-term potential.

One key roadblock to scaling AI is the approach organisations take towards adoption. The survey indicates that most businesses prefer buying GenAI tools and applications to developing them in-house. While this strategy allows companies to quickly integrate AI into their workflows, it may also lead to limited customisation, challenges in differentiation and dependence on external vendors. Organisations that fail to align AI solutions with their unique operational needs might struggle to realise the full potential of these technologies.

AI projects also have significant sunk costs, which complicates investment decisions. An overwhelming 94 percent of firms would need more than six months to exit a project that does not achieve ROI goals, and 76 percent expect it to take more than a year. This financial rigidity makes it essential for businesses to choose whether to build custom AI solutions or use pre-built tools right from the start. Given that most organisations prefer buying AI applications rather than developing them in-house, the challenge lies in ensuring these external solutions remain adaptable to changing needs.

This preference for off-the-shelf AI tools can increase the risk of obsolescence. With AI evolving at an unprecedented pace, 28 percent of firms fear their current AI solutions will become outdated within the next two years. The reliance on third-party AI tools makes it critical for businesses to constantly evaluate whether their investments will stand the test of time or require costly replacements.

Notes to the Editor: 

To obtain a global view of how Gen AI is being adopted by organisations on the leading edge of AI, Deloitte surveyed 2,773 leaders between July and September 2024. Fourteen countries were represented: Australia (100 respondents), Brazil (115 respondents), Canada (175 respondents), France (130 respondents), Germany (150 respondents), India (200 respondents), Italy (175 respondents), Japan (100 respondents), Mexico (100 respondents), the Netherlands (50 respondents), Singapore (75 respondents), Spain (100 respondents), the United Kingdom (200 respondents), and the United States (1,203 respondents).