ServiceNow Enterprise AI Maturity Index 2026: India’s Enterprise AI Investment Surges 119%

India is entering a defining phase in its artificial intelligence journey, with enterprise AI investment surging by 119% in a single year, outpacing the global average of 110%. According to the ServiceNow Enterprise AI Maturity Index 2026, AI is projected to make up more than a fifth of the average IT budget by 2027. This financial momentum relies on national strengths such as world-class digital public infrastructure, deep engineering talent, and rapid enterprise adoption. However, future success depends heavily on governance rather than deployment speed alone, as only 22% of Indian enterprises currently have AI testing, auditing, and risk-assessment processes in place.

While 54% of Indian organizations are deploying AI agents, only 11% have transitioned to autonomous workflows. Business leaders are prioritizing trust, risk, and readiness due to several primary concerns:

60% cite transparency and the potential for misinformation as a top AI consideration.

55% point to regulatory and compliance complexity.

50% identify data privacy and security concerns.

Kulmeet Bawa, Managing Director & Group Vice President of ServiceNow India and SAARC, noted that India has committed to AI at a scale matched by few markets, and the next leap will depend on pairing that ambition with governance, connected data, and workflows.

National Frameworks and the Need for Connected Foundations:
India’s enterprise momentum is mirrored by a proactive national framework, which includes the Digital Personal Data Protection Act and its rules coming into force in 2025, the AI Governance Guidelines launched at the February 2026 AI Impact Summit, the IndiaAI Mission, and the establishment of the IndiaAI Safety Institute.

To turn investment intent into dependable AI, organizations require a solid foundation beneath them. Currently, AI accounts for 16.6% of India’s average IT budget projected to rise to 21.3% by 2027 yet only 18% of Indian organizations have replaced fragmented legacy systems with an integrated platform, and AI-enabled workflows scored 41 out of 100 in the study. Key foundational areas that enterprises are actively working to strengthen include:

74% flag data accuracy, access, and management as the area most in need of strengthening for AI.

56% point to legacy system integration.

Closing these gaps is essential to elevate India’s overall AI governance score from its current 55 out of 100. Ashvin Vellody, Partner and Chief Strategy & Innovation Officer at Deloitte India, emphasized that scaling AI requires reimagining workflows, decision-making, and operating models while giving equal attention to data, talent, governance, and accountability.

Closing the Gap with APAC’s AI Pacesetters:
APAC Pacesetters organizations that have successfully built connected systems, trusted data, strong governance, and enterprise-wide workflows are currently achieving a 149% ROI on AI, which is projected to reach 181% within two years. These pacesetters are six times more productive than their peers and hold a 78/100 score on AI governance compared to India’s 55/100.

Addressing the 23-point gap between India and global leaders, Kulmeet Bawa emphasized that enterprises must build their governance layers, connect data, and empower AI to handle consequential work over the next 12 months to define India’s AI decade.