Indian businesses are increasing their AI budgets, but turning results into returns remains a challenge. Dun & Bradstreet’s August 2026 survey found 69% of firms plan to spend more on AI. Leaders now focus on data readiness and cybersecurity costs, as only 4% of companies have data ready for scale.
Synopsis
Indian businesses are increasing their AI budgets, but turning early results into sustainable returns requires more than buying new tools. Data readiness, cybersecurity and the cost of implementation are becoming central to investment decisions, forcing leaders to assess where AI can deliver measurable value and what it will take to deploy it responsibly.
A customer service team may spend less time answering routine queries after introducing an AI tool. Whether the company saves money by extending its use across the business is harder to establish. Connecting the tool to existing systems, training employees and putting security measures in place all add to the cost. The gains need to hold up against that expense for the investment to make sense.
Indian businesses appear willing to make that commitment. Dun & Bradstreet’s AI Momentum Survey for India, released in August 2026, found that 69% of surveyed businesses planned to increase their AI investments, while 73% reported some measurable returns from existing initiatives.
Yet only 4% said their enterprise data was fully ready to support AI at scale. Half reported returns in specific areas of the business, suggesting that early gains have not necessarily translated into consistent results across the organisation.
For decision-makers, the gap between a successful pilot and an enterprise-wide deployment is where the investment case needs a better look. A tool that performs well in one department may require additional data integration, infrastructure and employee training before it can deliver similar results elsewhere. The projected benefits must be weighed against these costs, rather than extrapolated from the pilot alone.
The cost of getting security wrong
The companies weighing an AI rollout, cost of protecting the system is becoming part of the investment decision. Indian businesses are increasing cybersecurity spending as AI expands the range of potential threats. An ETtech report published in June 2026 found that cybersecurity spending in India had risen 30% year-on-year, as enterprises strengthened defences against evolving threats.
Live Events
The financial commitment comes alongside concerns about whether AI projects can be scaled securely and profitably. At an Economic Times AI Vantage roundtable in June 2026, corporate leaders highlighted the challenges of moving beyond pilot projects, including security, governance, technical debt and the need to redesign workflows. The discussion underscored a central issue for businesses: the cost of AI extends beyond the technology itself to the systems, safeguards and organisational changes required to make it work at scale.
For investment teams, these considerations belong in the business case from the outset. A project that appears inexpensive at pilot stage may require substantial spending on data protection, monitoring and integration before it is ready for wider use. Those costs need to be weighed against the expected returns, alongside the consequences of deploying a system without adequate safeguards.
Deciding which projects deserve funding
The practical question for leaders is how to compare projects with different levels of potential return and risk. A useful assessment begins with a specific operational problem and a baseline against which improvement can be measured. Faster processing may be valuable, but the business should also examine whether accuracy improves, costs decline, or customers receive a better experience.
Projects should also be assessed for their readiness to scale. If the necessary data are fragmented or unreliable, improving those foundations may be a better first investment than deploying a more sophisticated model. The same applies when employees lack the training or authority to act on the system’s recommendations.
These trade-offs will be discussed at The Economic Times’ Future of Knowledge Work Summit 2026 in Mumbai. The discussion will examine how businesses can pursue new capabilities while keeping returns, risk and implementation realities in view.
The strongest AI investment case is built on more than projected savings or pressure to keep pace with competitors. It requires a clear business objective, credible measures of success and a realistic account of the safeguards needed. For companies deciding where to commit their next round of technology spending, that discipline may prove as important as the technology itself.
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The summit will take place on 19 November 2026 at Mumbai. It is a full-day event; doors open at 8:30 AM, and the main stage sessions begin at 9:30 AM.
Who should attend the summit?
The summit is designed for 300+ CXOs and senior leaders (Director level and above), including CEOs, CTOs, CIOs, CISOs, CHROs, and Heads of AI. Attendees represent diverse sectors such as BFSI, IT, Manufacturing, Healthcare, Telecom, and high-growth Startups.
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