India excels in Cloud, AI, and ML Experian Study

India stands resilient in the face of global challenges, as highlighted by the World Bank's recent assessment. The country's robust domestic demand, significant public infrastructure investments, and a strengthened financial sector collectively contribute to its impressive performance. A comprehensive study commissioned by Experian, a global information services leader, and conducted by Forrester Consulting reveals that an overwhelming 77% of surveyed business leaders express optimism for the upcoming year.

The study not only sheds light on India's remarkable resilience but also explores the profound impact of artificial intelligence (AI) on analytics, risk assessment, and customer experience. Notably, India leads in the adoption of AI and Machine Learning (ML), with adoption rates reaching 49% in customer service and 40% in identity verification.

India's dominance extends to the EMEA and APAC regions, where 85% of surveyed Indian businesses utilize external cloud providers for analytics, outpacing countries like Germany (66%), New Zealand (70%), and Spain (58%). This positions India as a frontrunner in cloud, AI, and ML utilization.

The Transformative Role of AI in Risk Mitigation

The report delves into the transformative potential of AI, emphasizing its role in fortifying resilience against top risk concerns. Data privacy (59%) and cybersecurity (53%) top the list of risk priorities for the upcoming year, followed by ESG risk (47%) and credit risk (41%). AI, particularly ML, emerges as a crucial tool to effectively mitigate these risks by improving the predictiveness of models and unlocking value from diverse data sources.

Data Integration and Cloud Investments Driving AI Success

AI success hinges on vast volumes of data and the right data infrastructure. Despite an increase in new data sources, the study finds that 48% of respondents face challenges in effectively sharing data at scale while ensuring trust and security. Consequently, 86% of business leaders prioritize investments in new data sources to enhance risk understanding and affordability.

Additionally, 55% of respondents identify the ability to seamlessly connect different data assets in a data warehouse as the biggest analytics-related challenge. To address this, 86% prioritize investments in cloud technology for seamless data integration, with 63% advocating for externally hosted cloud services to avoid data silos and aggregate data sources.

Unlocking AI's Potential: Productivity and Efficiency Enhancements

Organizations are actively exploring various AI use cases, including enhanced underwriting with ML-based models, early identification of vulnerable customers, improved fraud prevention, and faster customer service. A significant 65% of those using AI report that productivity gains offset the initial costs, showcasing a positive return on investment.

Saikrishnan Srinivasan, Managing Director at Experian, emphasized, "AI is leading the way in unlocking the power of data, revolutionizing business operations, and elevating customer experience." He stressed the imperative need for businesses to embrace AI, particularly in critical areas such as risk management and fraud prevention.

Malin Holmberg, CEO, EMEA & APAC at Experian, highlighted the importance of using AI responsibly and ethically. She pointed out that 61% of respondents have a comprehensive AI risk management program in place, actively addressing unintentional bias through transparent and explainable AI.

For further insights, you can access the complete report here.

Methodology

Experian's AI report is based on a survey of 889 business leaders in Financial Services and Telcos across ten countries, including India, Australia, Denmark, Germany, Italy, New Zealand, the Netherlands, South Africa, Spain, and Turkey. The research, conducted by Forrester Consulting in July 2023, explores how organizations leverage AI to enhance analytics and risk assessment while addressing the challenges they encounter.

About Experian

Experian, the world's leading global information services company, empowers consumers and clients to manage their data with confidence during life's significant moments. With 22,000 people operating in 32 countries, Experian invests in new technologies and innovation to help clients maximize opportunities.

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