India’s AI readiness gap widens in cybersecurity push

A new assessment of AI adoption for cybersecurity has highlighted a sharp divide between enthusiasm and actual preparedness across Indian organisations. The study shows that while businesses are moving fast to deploy AI and ML, only a small share of leaders believe they are ready for AI-driven attacks.

The report notes that just 24 per cent of CXOs consider their organisations fully equipped to handle AI-powered threats. This gap between intent and execution forms the backdrop for a broader look at how India Inc. is adopting AI, investing in defences, and responding to a shifting threat landscape.

Adoption intent is high; maturity lags

A large majority of organisations, 79 per cent, plan to integrate AI and ML into their security operations. Yet 40 per cent remain stuck in trial stages. The primary driver behind adoption is speed, with companies aiming to cut the time it takes to detect and respond to incidents.

The report presents these findings as a baseline for where India stands today. It also highlights capability gaps, talent shortages, and uneven governance models that shape the country’s readiness.

Investments growing as threats evolve

Strategic investment is becoming more common, with 64 per cent of organisations committing to multi-year roadmaps for risk management. At the same time, AI-driven threats are reshaping priorities. About 23 per cent of organisations are already resetting their plans to counter new attack patterns that use AI to scale and automate breaches.

The top concerns include coordinated multi-vector attacks and poisoned supply chains, both amplified by machine-driven automation.

Cost and skills remain major hurdles

Two barriers stand out. Financial overhead accounts for 19 per cent of the pushback, while 17 per cent of organisations cite a shortage of skilled talent. These constraints slow progress even as AI becomes central to how attackers operate.

Human-AI defence models gain ground

The future of defence appears to blend automation with oversight. About 31 per cent of organisations favour hybrid teams where humans and AI systems work together. A third of respondents also insist on human approval for AI-enabled high-risk decisions, signalling a shift towards caution as deployments grow.

Swapna Bapat, VP and MD, India & SAARC, Palo Alto Networks, said AI now sits at the centre of India’s security discussions, both as an accelerator and an adversary. She noted that while appetite is high, “execution and operational discipline are lagging”. She added that success requires continuous red-teaming of AI models, coherence across network and identity signals, Zero-Trust verification, and keeping humans in the loop for decisions with real risk.

Vinayak Godse, CEO, DSCI, said India is at a turning point as AI expands both attack capabilities and defensive sophistication. He said adoption can strengthen preparedness by improving visibility, governance, and response. The study, supported by Palo Alto Networks, aims to help organisations understand these shifts and prepare for AI-enabled threats.

Survey scope

The findings are based on inputs from more than 160 organisations across BFSI, manufacturing, technology, government, education, and the mid-market. Respondents included CXOs, security leaders, business heads, and functional teams.

Closing view

The report shows a country eager to use AI but still building the discipline needed to operationalise it safely. As machine-led attacks grow more complex, the balance between speed and control will decide how well organisations adapt.

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