The State of Responsible AI in India 2025 (NASSCOM)

Summary

• ~30% of surveyed Indian businesses reported matured responsible AI (RAI) practices, while ~45% reported initiating formal steps towards RAI adoption.p.8
• The survey collected responses from 574 senior executives across large enterprises, SMEs and startups.p.7
• ~35% of businesses in Banking, Financial Services and Insurance (BFSI) reported having matured RAI practices.p.9
• ~87% of businesses reported investments or plans to invest in workforce sensitisation and training for RAI.p.9
• ~56% of businesses reported hallucinations and ~36% reported privacy violations as the major AI risk they experienced.p.10
• ~43% of businesses reported lack of access to high-quality data as the biggest barrier to RAI implementation.p.10
• ~47% of businesses at higher RAI maturity said their existing practices are sufficient to deal with Agentic AI related risks.p.10

Key insights

1. Large enterprises account for ~46% of businesses with matured RAI practices, while SMEs account for ~20% and startups for ~16%.p.8
2. ~58% of businesses with high confidence in delivering or using AI projects responsibly at scale have matured RAI practices.p.8
3. ~48% of respondents located the major share of accountability for RAI compliance with the C-suite or the board of directors, and ~26% with senior executives including heads of departments.p.9
4. ~49% of respondents were most confident about meeting data protection obligations, while ~59% were least confident about monitoring related compliances.p.9
5. ~65% of businesses with matured RAI practices have constituted an internal AI ethics board or committee, but ~28% of businesses remain sceptical about its utility.p.10
6. Lack of explainability (~35%) and unintended bias or discrimination (~29%) were also among the major AI risks experienced.p.10
7. ~20% of businesses cited regulatory uncertainty and ~15% cited shortage of skilled personnel as the biggest barrier to RAI implementation.p.10
8. ~55% of business leaders were most confident about meeting data protection obligations, and ~74% were least confident about monitoring related RAI compliances.p.18