Around 70% of Indian organisations have made artificial intelligence (AI) a strategic priority, but concerns around security, compliance and infrastructure readiness continue to hinder adoption, according to Dell Technologies’ Modern Enterprise Readiness Study 2026. The study, which surveyed 2,950 business and IT decision-makers across 35 countries including 150 respondents from India, found that AI adoption in India is accelerating as companies move beyond experimentation towards production-scale deployments.
More organisations move AI into production
According to the report, 26% of Indian organisations now have AI or generative AI solutions running in production environments, up from 20% a year ago. The findings highlight growing enterprise confidence in AI technologies as businesses look to integrate them into core operations. However, organisations are becoming more cautious about investments. Across the Asia Pacific, Japan and Greater China (APJC) region, 72% of respondents said they would not pursue new AI initiatives without clear business outcomes and a defined risk management strategy.The report noted that enterprises are increasingly focused on translating AI investments into measurable returns rather than pursuing projects based solely on technological promise.
Security remains a major roadblock
Despite the enthusiasm around AI, security and regulatory concerns continue to be a significant challenge. The study found that 61% of Indian organisations have experienced delays or pauses in AI adoption due to security and compliance concerns. As AI systems become more deeply integrated into critical business operations and data environments, organisations are placing greater emphasis on governance, privacy and regulatory compliance frameworks.Dell said these concerns are forcing businesses to consider trust, risk management and data protection much earlier in the AI deployment process.
Infrastructure readiness a key concern
Infrastructure preparedness emerged as another major hurdle for scaling AI initiatives.According to the study, 67% of Indian organisations believe their current data centre environments are not ready to support AI workloads at production scale. Enterprises increasingly require advanced compute, storage and networking capabilities to run AI applications effectively, creating pressure to modernise existing infrastructure.The report suggested that organisations that successfully upgrade their infrastructure foundations could gain a competitive advantage as AI adoption expands.
Businesses seek strategic technology partners
The study also highlighted a shift in enterprise spending patterns, with nearly nine out of ten Indian organisations redirecting investments toward technology partners capable of supporting large-scale AI and digital transformation programmes. Rather than relying on individual products or point solutions, organisations are increasingly looking for partners that can provide end-to-end support across AI, infrastructure, data and security environments while delivering measurable business outcomes.
Building foundations for the next phase of AI
Commenting on the findings, Venkat Sitaram, Senior Director and Country Head, Infrastructure Solutions Group, India, Dell Technologies, said organisations are taking a more integrated approach to transformation, where AI, infrastructure, workplace modernisation and security must work together.“Organisations are looking beyond individual technologies and seeking partners that can help them navigate complexity, strengthen resilience and translate technology investments into measurable business outcomes,” Sitaram said.The study concludes that while India’s AI momentum remains strong, long-term success will depend on secure and modern infrastructure, clear business outcomes and strategic partnerships that can support AI deployments from planning through execution.
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