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HomeAnalytical Insights & PerspectivesOpenText Report Highlights Governance as Crucial for AI Scalability...

OpenText Report Highlights Governance as Crucial for AI Scalability in Indian Businesses

TLDR: A new global study by OpenText and the Ponemon Institute reveals that while Indian enterprises are leading in Generative AI adoption, significant gaps in information governance, security, and data readiness are hindering their ability to scale AI responsibly across business operations. The report emphasizes that robust information foundations are essential to unlock AI’s full potential.

Indian enterprises are at the forefront of Artificial Intelligence (AI) adoption globally, particularly in Generative AI, yet a recent study by OpenText, in collaboration with the Ponemon Institute, indicates that challenges in information governance, security, and data readiness are impeding their efforts to scale AI effectively. The report, titled ‘The Challenges to Ensuring Information Is Secure, Compliant and Ready for AI,’ surveyed nearly 1,900 senior IT and security leaders worldwide, including 337 from India.

The study found that a remarkable 48% of Indian enterprises have already integrated AI into their IT and business strategies, marking one of the highest adoption rates globally. Furthermore, Indian organizations are prioritizing digital transformation more aggressively than their global counterparts (54% in India versus 44% globally). Despite this rapid adoption and strong ambition, only 15% of Indian leaders expressed confidence in measuring the return on investment (ROI) from securing and managing the information that underpins these AI initiatives.

Information complexity, largely driven by unstructured data, coupled with persistent security risks and insufficient governance safeguards, presents a significant hurdle for enterprises aiming to scale AI responsibly. Indian companies also demonstrate a heightened awareness of AI-related risks; 46% of Indian respondents cited bias in AI models as a top concern, compared to 32% globally, and nearly half highlighted privacy infringement.

Saurabh Saxena, Regional Vice President, OpenText India, commented on the findings, stating, “India is fast emerging as a global leader in AI adoption, with enterprises showing remarkable ambition and enthusiasm. With 59% of Indian boards and CEOs rating AI as extremely important, higher than peers in the UK and France, the ambition is clear. The opportunity now is to leapfrog global counterparts by closing gaps in information readiness. The success of AI will depend on how well organizations address information readiness gap, simplifying complexity, securing sensitive data, and embedding responsible governance practices. By investing in strong information foundations today, Indian enterprises can unlock AI’s full potential with speed and confidence.”

India also leads in deploying Generative AI for mission-critical applications, with 46% of organizations using it for security operations and 44% for business reporting—figures significantly higher than global averages. This indicates a deep integration of GenAI into operational and strategic decision-making processes.

Cybersecurity remains a critical concern, with over half of Indian organizations reporting a breach or cyber incident in the past two years, averaging three incidents each. Ransomware and insider threats are identified as the most pressing risks. Shannon Bell, Chief Digital Officer, OpenText, reinforced this, saying, “This research confirms what we’re hearing from CIOs every day. AI is mission-critical, but most organizations aren’t ready to support it. Without trusted, well-governed information, AI can’t deliver on its promise.”

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Despite the strong digital ambitions, a lack of confidence in measuring ROI on information security investments (41% in India) and challenges such as copyright risks, a shortage of in-house expertise, regulatory uncertainty, and budget constraints are slowing the ability to scale GenAI. OpenText emphasizes that strengthening information governance, enhancing cybersecurity, and investing in robust infrastructure are crucial steps for Indian enterprises to fully realize AI’s potential.

Ananya Rao
Ananya Raohttps://blogs.edgentiq.com
Ananya Rao is a tech journalist with a passion for dissecting the fast-moving world of Generative AI. With a background in computer science and a sharp editorial eye, she connects the dots between policy, innovation, and business. Ananya excels in real-time reporting and specializes in uncovering how startups and enterprises in India are navigating the GenAI boom. She brings urgency and clarity to every breaking news piece she writes. You can reach her out at: [email protected]

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