How Generative AI is Powering India’s Enterprise Transformation: NTT DATA

Authored by Prasenjit Roy, Business Head – Data & AI, India, NTT DATA

With its robust IT ecosystem and growing pool of tech-savvy professionals, India is well-positioned to benefit from advances in GenAI.

Government initiatives such as Digital India, the IndiaAI Dataset Platform and Make in India are accelerating the country’s digital transformation, while the IndiaAI Mission aims to use AI to foster innovation, economic growth and social change. This includes strengthening India’s computing and semiconductor infrastructure; in 2024, the government allocated INR103 million (USD1.2 billion) over five years for this purpose.

The mission also seeks to ensure open access to diverse, high-quality datasets and AI centers of excellence while encouraging the development of localised foundational AI models. These models will support tasks such as translation between Indian languages, streamlining public services and enabling other content-generation activities.

These developments bode well for the integration of AI into digital public infrastructure, including the Aadhaar identity-number system and the state-owned, cloud-based DigiLocker document digitalisation service. At the 2025 Maha Kumbh Mela, the Hindu pilgrimage festival, the voice-enabled Kumbh Sah’AI’yak chatbot supported lost-and-found services and provided translation and assistance in Hindi, English and nine other Indian languages.

A critical need to embrace GenAI

For local organisations, adopting GenAI is therefore no longer a luxury but a necessity — and it’s the view from the top, with 96% of C-suite executives globally expecting a material impact from GenAI and 74% saying it will be a game changer, according to NTT DATA’s Global GenAI Report data.

Our research data further reveals that all respondents from organisations in India plan to invest more in GenAI, pointing to a significant shift in business strategy.

In addition, 95% of local organisations have a well-defined GenAI strategy in place, and only 37% have not yet aligned it with their business plans — a strong showing compared with 51% of respondents worldwide who haven’t yet taken this step.

It’s clear that Indian organisations are now moving beyond experimenting with GenAI and homing in on the use cases with real ROI.

Key GenAI use cases in India

One of the most significant applications of GenAI is in quality control. The manufacturing sector is a cornerstone of the Indian economy, and AI-driven quality-control systems can significantly reduce product defects. For example, AI algorithms can analyse real-time production-line data to flag anomalies and predict issues.

In the financial sector, GenAI can assess risk and detect fraud, as these models use their real-time monitoring and predictive capabilities to process vast amounts of data and identify patterns that human analysts might miss — and that’s just one example of their utility.

An NTT DATA report, Intelligent Banking in the Age of AI, shows how GenAI is streamlining payment workflows, making the processing of transactions faster, more secure and more accurate, while in wealth management, it helps financial advisors to deliver hyperpersonalised insights to their clients while easing their administrative burden.

The need for excellent customer service, which spans industries, is another area where GenAI is making a difference. GenAI-powered chatbots and virtual assistants can make personalised service recommendations, while GenAI-enabled knowledge-management systems can capture and disseminate critical information more efficiently, leading to better decision-making.

In process automation, GenAI can automate repetitive and time-consuming tasks, freeing up human resources to focus on higher-value activities. This reduces costs while improving the operational efficiency and overall productivity of an organisation.

What do you gain from adopting GenAI?

NTT DATA’s GenAI report data shows these are the top five areas where organisations in India expect to see improvements following investment in GenAI:

1. Competitiveness: Organisations can gain a competitive edge by using GenAI to improve their products and services, thereby attracting and retaining customers.
2. Accelerated innovation: GenAI helps organisations to develop new products and services faster and more easily. An example is the development of new drugs by using GenAI to analyse vast amounts of medical data.
3. Compliance and process adherence: Compliance with regulatory requirements is a constant challenge. GenAI can automate compliance controls, reducing the risk of noncompliance and penalties.
4. Stronger security: Cybersecurity is always a top concern. GenAI can protect sensitive data and applications by detecting and mitigating threats in real time.
5. Higher revenue: Ultimately, GenAI can boost revenue by improving operational efficiency and customer satisfaction while creating new revenue streams.

5 obstacles to GenAI adoption

While the potential benefits of GenAI are clear, there are several obstacles for organisations to address. These include:

1. Keeping up with GenAI: New types of large language models (LLMs) are continually emerging, alongside rapidly evolving GenAI trends like agentic AI, which refers to autonomous AI systems that can make decisions and execute tasks with minimal human intervention. These systems can also adapt continuously to changes in business environments.Take action: Work with an expert global service provider who can keep you updated on what’s truly important in the GenAI market.
2. The need for training and awareness: Only 67% of local organisations have expert or robust GenAI teams in place today — lagging the 83% of respondents worldwide who already have such teams, according to the GenAI report. Beyond this focused effort, other employees also need the skills to use GenAI systems.Take action: Invest in comprehensive training programmes and awareness campaigns. Team up with technology partners to educate your workforce about the potential of AI and GenAI. At the same time, put together an expert GenAI team from diverse parts of your organisation to guide your strategy.
3. Concerns about safety and security: Robust security measures prevent data breaches and ensure the integrity of GenAI systems.Take action: Adopt advanced encryption tools and conduct regular security audits to ensure you’re complying with data-protection regulations like India’s Digital Personal Data Protection Act. Schedule regular updates and patches, and engage professional services to protect your LLMs and small language models.
4. Perceived limited value: Some users may perceive limited value in GenAI solutions, which can hinder adoption.Take action: Demonstrate the tangible benefits of the technology through pilot projects and use cases to build a strong case for broader adoption.
5. Legacy infrastructure: Our GenAI research shows that 87% of Indian organisations believe that their legacy infrastructure keeps them from using GenAI effectively.Take action: Start small and scale later, depending on how you prioritise your use cases. Work with an expert service provider to find the most efficient way of managing your transition to a GenAI-enabled future.

The future is bright

As the Indian IT landscape matures, the successful integration of GenAI will not only transform individual organisations but also contribute to the country’s overall economic development.

The advanced DeepSeek R1 AI model, for example, has the potential to revolutionise India’s AI landscape by fine-tuning domain-specific models in specific industries with high-value, contextually relevant data.

This new approach to AI training leads to more effective and efficient AI solutions. Industries that rely on deep expertise, such as financial services, healthcare and the legal and industrial sectors, therefore stand to benefit from AI development powered by expert knowledge rather than just computational resources.

We also see 2025 as the year when agentic AI will be seamlessly integrated into a range of business processes. Organizations are looking for ways of scaling AI agents efficiently to encourage innovation and achieve tangible business results.

The future is AI-driven, and India is ready to embrace this future with confidence.