India’s enterprise AI investment surges 119%

India’s enterprise AI investment grew 119 per cent in one year, surpassing the global average. However, only 22 per cent of enterprises have AI governance processes. ServiceNow says stronger governance, connected data and workflows will be crucial for India’s next AI growth phase.

Hyderabad: India’s enterprise AI investment grew 119 per cent in a single year, above the global average of 110 per cent, according to the newly released ServiceNow Enterprise AI Maturity Index 2026. AI is projected to account for more than a fifth of the average IT budget by 2027.

This investment momentum is being built on national strengths, digital public infrastructure, deep engineering talent and one of the fastest rates of enterprise AI adoption globally. The next phase, however, will depend less on how quickly organisations deploy AI and more on how confidently they can govern it.

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Today, only 22 per cent of Indian enterprises have AI testing, auditing and risk-assessment processes in place. The gap is already visible with 54 per cent of Indian organisations deploying AI agents, but only 11 per cent moved to autonomous workflows. This shows India is moving fast, but with clear caution about where AI should be allowed to act independently.

Every AI agent an enterprise deploys is an identity with access to data, systems and decisions. Building the governance to run these agents will shape how quickly Indian enterprises deploy more of the work that matters to AI.

“India has proven it can commit to AI at a scale few markets can match. The next leap will be defined by how Indian enterprises pair that ambition with governance, connected data and workflows that let AI take on more consequential work. The organisations that build these foundations first will unlock AI’s next tier of value for India,” said Kulmeet Bawa, Managing Director & Group Vice President, ServiceNow India and SAARC.