According to the AI at a crossroads: Building trust as the path to scale report by Deloitte Asia Pacific, about 92 percent of Indian executives identify security vulnerabilities, including hacking and cyber threats, as a primary concern in AI adoption, while 91 percent express significant concern about the privacy risks related to sensitive data in AI usage. Additionally, 89 percent highlight complexities resulting from regulatory uncertainties, citing evolving compliance requirements as a challenge towards AI integration. These findings highlight the need for a robust cybersecurity framework, privacy protections and clear regulations to manage risks and foster trust in AI adoption.
This report was co-developed by Deloitte Access Economics and Deloitte’s AI Institute. The objective is to provide valuable insights to C-suite executives and technology leaders as they develop effective AI governance to support their AI adoption and address the increasing challenges related to risk management. Based on a survey of senior leaders across the Asia Pacific region, the report reveals that less than one in ten organisations currently have governance structures necessary to ensure trustworthy AI. These responses were assessed against Deloitte’s AI Governance Maturity Index.
Despite growing AI adoption, Indian executives face significant challenges in implementing and understanding the technology. Nearly 50 percent of the surveyed leaders cited technology integration difficulties, reflecting struggles to align AI with existing systems. Furthermore, 35 percent highlighted insufficient knowledge of AI’s potential, emphasizing the need for upskilling and awareness. Additionally, 32 percent of Indian executives identified regulatory, legal, ethical and associated risks as key barriers, pointing to the critical importance of robust frameworks and guidance.
Jayant Saran, Partner, Deloitte India, said, “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. Trust must be cultivated by enhancing resilience against security vulnerabilities and privacy risks while adapting to evolving regulations. For Indian organisations, the imperative must be to integrate AI seamlessly into existing systems, addressing both technical and knowledge gaps to ensure sustainable adoption.
The encouraging focus on workforce readiness reflects a critical step forward, but the journey requires continuous upskilling and cross-functional collaboration. By fostering trust through robust frameworks and ethical practices, businesses can mitigate risks and unlock AI’s potential to drive innovation, enhance reputation and deliver value with confidence in an increasingly AI-driven landscape.”
On the other hand, 60% of the workforce in surveyed organizations reportedly possess the skills and capabilities required to use AI solutions ethically and legally. Furthermore, 72 percent of organisations are actively addressing the skills gap by hiring individuals equipped with the expertise to ensure the ethical and compliant use of AI. These proactive efforts highlight the dual focus on strengthening workforce readiness and managing emerging challenges to foster responsible AI adoption.
Dr Elea Wurth, Lead Partner Trustworthy AI Strategy, Risk & Transactions Deloitte, Asia Pacific and Australia, said, “Effective AI governance is not just a compliance issue; it is crucial for realising the full potential of AI technologies. Our findings reveal that organisations with robust governance frameworks are better equipped to manage risks and experience greater trust in their AI outputs, increased operational efficiency and greater value and scale.”
Indian executives are optimistic about the transformative potential of effective AI governance, with 63 percent emphasizing that it would lead to higher levels of trust in the outputs or results generated by AI solutions. Additionally, 60 percent believe robust governance can enhance their organisation’s reputation among customers, while 57 percent expect it to drive greater adoption of AI solutions due to increased trust.
