Qlik Report: 1 in 5 Indian Businesses Stall AI Projects over Skill Gap

Qlik, a provider of data integration, analytics, and artificial intelligence (AI) solutions, has released findings from a global research study conducted in November 2024. The independent study surveyed 4,200 C-suite executives and AI decision-makers across 19 markets, focusing on sectors including IT, financial services, manufacturing, retail, and healthcare. The research analyzed AI adoption challenges, opportunities, and attitudes toward ‘buy-to-build’ strategies.  

AI Adoption in India: Strategic Importance and Key Challenges

In India, 57% of executives consider AI critical for achieving strategic goals and enhancing profitability. However, organizations face challenges in transitioning AI initiatives from planning to execution. These challenges include skills shortages, governance issues, trust deficits, and resource constraints.  

The study reveals that 20% of businesses have between 51 and over 100 AI projects stalled at the planning stage, while 12% report scrapping or halting projects entirely. To overcome these challenges, Indian organizations are increasingly opting for ready-made AI solutions to accelerate implementation and achieve measurable returns on investment.  

Key Barriers to AI Adoption

The research identifies significant barriers to AI adoption among Indian businesses:  
- Skills Gap: 31% of organizations lack the talent needed to develop AI solutions.  
- Data Access: 26% of AI decision-makers cite insufficient access to trusted data as a challenge.  
- Governance: 28% of respondents report data governance issues as a major obstacle.  
- Budget Constraints: 25% identify limited financial resources as a critical hurdle.  

The study also highlights trust as a concern, with 41% of senior managers and 38% of less senior employees lacking confidence in AI systems. Additionally, 16% of businesses report concerns about customer trust in AI, while 57% of respondents state that trust deficits have resulted in reduced AI investments.  

Leveraging Ready-Made AI Solutions and Training

To address these challenges, 78% of Indian AI leaders see ready-made AI solutions as a practical approach to accelerating AI adoption and achieving ROI. Building trust in AI systems remains a key priority, with businesses focusing on promoting the benefits of AI internally and externally.  

Upskilling and Government Support for AI Development

The research underscores the importance of upskilling and government initiatives in addressing the AI skills gap.  
- Upskilling Workforce: 80% of respondents emphasize the need for better staff training and AI skill development.  
- Government Support: 78% advocate for increased government funding and AI training programs to drive adoption.  

Looking ahead, 79% of AI decision-makers believe India has the potential to become a global leader in AI skills within the next five years. Achieving this goal will require industry efforts to nurture talent and government support to promote AI development. 

Unlocking AI’s Potential with Agentic AI

“Business leaders know the value of AI, but they face a multitude of barriers that prevent them from moving from proof of concept to deployment of the technology. The first step to creating an AI strategy is to diagnose where the potential blockades are - be it skills, resources or data governance issues. By creating a multifaceted picture of the organisation’s challenges, you start to build trust and win management buy-in to help you succeed,” said James Fisher, Chief Strategy Officer at Qlik. 

“India has the talent and ambition to play a key role in the global AI landscape. To make this happen, we need to focus on developing AI skills, building trust in AI, and helping businesses address challenges around governance and resources. AI is already making an impact across industries, but to fully realize its potential, organizations must tackle issues of trust, data governance, and skills shortages. Our findings emphasize the importance of collaboration between businesses, governments, and educational institutions to strengthen AI capabilities and build trust in these technologies,” said Varun Babbar, Managing Director, India at Qlik.

The survey gathered insights from 250 senior managers and board-level executives in India, responsible for overseeing AI projects at large enterprises with 500 to 4,999 employees. Participants represented a range of industries, including IT and telecommunications (16%), financial services (12%), manufacturing (11%), retail (7%), construction and engineering (7%), and healthcare and pharmaceuticals (6%). This diverse representation offers a comprehensive perspective on AI adoption across key sectors.

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