Strategic Adoption of Artificial Intelligence in Indian Businesses: Opportunities, Governance Challenges, and Capability Building

Artificial intelligence, Indian businesses, strategic adoption, governance challenges, capability building, organizational readiness

Artificial intelligence is now a strategic priority for Indian businesses eager to boost their efficiency, respond quickly to customers, enhance their analytical skills, and make better managerial decisions. It is now part of everyday business conversations in India, with firms leveraging it for enhanced efficiency, quicker customer responses, and better decision-making. This study with 117 survey responses explored AI adoption through perceived opportunities, governance challenges, and building capabilities. The results show that recognizing opportunities and developing capabilities are crucial for successfully adopting AI strategically. Additionally, building capabilities helps organizations become more prepared for AI-driven changes. Governance challenges did not show a statistically significant direct effect on strategic AI adoption from the collected sample, showing their potential to impact these challenges in an indirect manner or contextually rather than immediate barriers. The study concludes that businesses derive greater strategic value from AI when their technological goals align with organizational readiness, employee skills, and disciplined execution.