Survey Highlights Concerns Around AI Governance and Workforce Readiness
Key Highlights:
- Cyberattacks, data breaches, and regulatory uncertainty challenge AI adoption in India.
- Insufficient understanding of AI and ethical risks hinder implementation.
- Workforce readiness and effective AI governance identified as critical needs.
As Indian companies integrate artificial intelligence (AI) into their systems and processes, concerns surrounding cybersecurity, data privacy, and regulatory uncertainty are surfacing as major hurdles, according to a recent report by Deloitte Access Economics and Deloitte’s AI Institute. The survey, which analyzed AI adoption across public, private, and non-profit sectors, highlights the need for better governance, workforce upskilling, and cross-functional collaboration to fully harness AI’s potential.
Regulatory and Security Challenges
The report revealed that cyberattacks and data breaches remain significant threats, exacerbated by the rising global average cost of data breaches, which has reached nearly $5 million in 2024—a 10% increase from the previous year. Regulatory uncertainty further complicates matters, with organizations grappling with how to implement AI responsibly amidst a lack of clear standards and guidelines.
Jayant Saran, Partner at Deloitte India, emphasized the importance of proactive governance, stating, “Effective AI governance is not just about regulation or compliance. It is about fostering innovation while ensuring accountability and transparency and, therefore, demands a shift to proactive risk management. The encouraging focus on workforce readiness reflects a critical step forward, but the journey requires continuous upskilling and cross-functional collaboration.”
Workforce Readiness and Ethical AI Use
One of the survey’s critical findings was that, despite regulatory uncertainty, 60% of the global workforce in organizations surveyed possess skills to use AI solutions ethically and legally. In India, however, people and skills remain a pressing challenge, with an average of 56% of employees equipped to use AI responsibly.
The focus on workforce readiness aligns with the broader need for upskilling and knowledge sharing to ensure ethical AI use. The survey, which polled 102 respondents in India and 797 participants across South Asia, covered industries like finance, education, health, and technology, underscoring the cross-sectoral nature of AI adoption.
Governance Shortfalls in Asia Pacific
The report pointed out gaps in AI governance in the Asia Pacific region. While supporting AI governance entails clear roles accountable for AI standards and broadly understood principles, over half of AI policies in the region lacked timelines for achieving governance goals. This deficiency highlights the urgent need for companies to establish well-defined governance frameworks to support AI integration.
The Path Forward
Despite the hurdles, the report identifies opportunities for improvement:
- Proactive Risk Management: Companies must go beyond compliance to foster innovation while maintaining accountability and transparency.
- Upskilling Initiatives: Organizations need to invest in workforce readiness, ensuring employees are equipped with the skills to use AI responsibly.
- Clear Governance Policies: Establishing timelines and roles for AI governance will be essential for successful implementation.
The findings emphasize that AI adoption in India and the broader Asia Pacific region requires a balance between innovation and governance. With strategic initiatives, companies can overcome these challenges and leverage AI to drive efficiency, innovation, and growth responsibly.