One of 2024’s defining themes was the increasing integration of AI across industries, according to India’s Corporate India Risk Index (CIRI) 2024 report released recently. India’s CIRI score rose to 65 in 2024 from 64 in 2023, as per the fifth edition of the report. This shows a gradual improvement in risk handling in Indian businesses.
The strategic adoption of AI in sectors such as banking, financial services and insurance (BFSI), healthcare, and manufacturing has allowed India to improve operational efficiency while managing the challenges of swift technological advancements.
In the BFSI sector, AI integration bolsters the digital transformation and enhances fraud detection and compliance, increasing security and efficiency.
IT companies in India have had to continuously innovate and enhance their workforce skills to meet their clients’ evolving demands. Cybersecurity threats have surged, with a growing number of cyberattacks occurring globally. As a result, IT firms needed to invest significantly in strengthening their cybersecurity measures to protect their clients’ data and infrastructure.
“To mitigate these risks, Indian IT companies have increasingly focused on diversification of their offerings, geographic expansion, and investments in technology like AI and automation to improve efficiency.”
The report by ICICI Lombard in partnership with Frost & Sullivan also noted that the IT sector showed growth and improvement despite global challenges, due to demand for cloud services, cybersecurity solutions and AI technologies.
Tier 2 and 3 cities have emerged as new tech hubs as the state governments have tried to enhance regional tech expansion. For instance, AIM reported that the Chhattisgarh government launched one of India’s first AI-based data centre parks in Raipur, with around ₹1,000 crore funding that will be spent over the following two years.
Substantial growth in the healthcare sector was driven by digital advancements like telemedicine and AI-powered diagnostics, which enhanced accessibility and efficiency in healthcare delivery.
“AI and machine learning were increasingly adopted to streamline drug discovery, clinical trials, and patient care management, enabling more efficient processes and improved patient outcomes.”
The education sector also adopted AI and digital learning platforms, which have expanded access to “quality education and equipping the workforce for future demands in emerging technologies”.
However, this rapid adoption has also introduced new risks and challenges, such as data privacy, cybersecurity threats, workforce displacements, and ethical concerns.
“While India is taking proactive steps to manage these challenges, implementing stricter data protection regulations and fostering discussions around AI ethics are the need of the hour.”
The report highlighted that despite geopolitical tensions and global conflicts, India has pushed forward by creating a business environment that adapts to better technology and faster digital adoption.
