85% Indian businesses use cloud providers for analytics

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Mumbai: As India excels in Cloud, AI and ML, around 85% Indian businesses are using cloud providers for analytics purposes, according to an Experian-commissioned study conducted by Forrester Consulting.

A 77% of business leaders surveyed maintain a positive outlook for the upcoming year. The study also explores the profound impact of AI on analytics, risk assessment, and customer experience. Notably, India demonstrates impressive AI and Machine Learning (ML) adoption rates, reaching 49% in customer service and 40% in identity verification.

The study highlights India’s leadership in the EMEA and APAC regions, with 85% Indian businesses using external cloud providers for analytics. India’s adoption outpaces countries like Germany (66%), New Zealand (70%), and Spain (58%), solidifying its position as a front-runner in cloud, AI, and ML utilisation.

Pivotal role of AI

The report delves into the transformative potential of AI, and its biggest risk priorities, and underscores how AI plays a pivotal role in fortifying resilience. Data privacy (59%) and cybersecurity (53%) emerge as the top risk concerns for the upcoming year, followed by ESG risk (47%) and credit risk (41%).

Effectively mitigating these risks depends on improving the predictiveness of models and unlocking value from a wide variety of data sources. In this regard, AI, particularly ML, stands out as an instrumental tool with immense potential.

Data and Data Infrastructure

Achieving AI success requires large volumes of data and the right data infrastructure. Despite an increase in new data sources, the biggest data-related challenge (for 48% of respondents) pertains to the difficulty in effectively sharing data at a large scale, while ensuring trust and security. As a result, 86% of business leaders prioritise investments in new data sources to understand risk and affordability better.

The research shows that the biggest analytics-related challenge for nearly half of respondents (55%) is the ability to seamlessly connect different data assets in a data warehouse that can adequately support AI/ML use cases. To address this issue, 86% are prioritising investments in cloud technology for seamless data integration with 63% agreeing that externally hosted cloud services are the best way to avoid data silos and aggregate data sources.

AI: productivity, efficiency enhancements

There are multiple ways in which AI can improve productivity, efficiency, and service delivery. Many organisations are actively exploring AI use cases, with diverse possibilities, including enhanced underwriting with ML-based models, proactive and early identification of vulnerable customers, improved fraud prevention and faster customer service. More than half (65%) of those already using AI find that their productivity gains have offset the initial cost – a clear indication of positive ROI from AI adoption.
“AI is currently leading the way in identifying innovative approaches to unlock the power of data, revolutionising business operations and elevating customer experience. As businesses engage with increasingly intricate decisions, AI plays a pivotal role in optimising the efficiency and effectiveness of business processes,” said Saikrishnan Srinivasan, MD of Experian India.

“AI/ML has increasingly emerged as a pivotal catalyst in combating new fraud challenges, automating credit risk processes, and leverage alternative data. AI is rapidly transitioning from a choice to a necessity, driving improved business performance and fostering inclusive financial growth,” Srinivasan added.

While AI is driving innovation and enhancing analytical performance, it is critical to ensure this technology is used responsibly and ethically, according to Malin Holmberg, CEO of EMEA and APAC, Experian.

“61% of our respondents have a comprehensive AI risk management programme in place and are actively addressing unintentional bias through fully transparent and explainable AI. Businesses that embrace this technology will find themselves at an advantage as they unlock new growth opportunities through process efficiency and greater automation,” said Holmberg.