Data breach, regulatory uncertainty hurdles in AI implementation: Deloitte

Insufficient understanding of the technology among challenges for Indian companies, it says

As Indian companies implement artificial intelligence (AI) in systems and processes, cyberattacks, data breaches and regulatory uncertainty about the new technology have become a concern, according to a survey.

 

AI deployment in Indian companies faces challenges like insufficient understanding of the technology, concerns about regulations, and legal and ethical risks, said a report by Deloitte Access Economics and Deloitte’s AI Institute.

 

The survey polled 102 respondents in India across roles such as chief risk officers, chief compliance officers and data officers in public, private and not-for-profit sectors in industries that included finance, education, health and technology. In the rest of South Asia, it polled 797 participants in key roles of organisations.

 

 

“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. The encouraging focus on workforce readiness reflects a critical step forward, but the journey requires continuous upskilling and cross-functional collaboration,” said Jayant Saran, Partner, Deloitte India.

 

The report said that despite uncertainty around regulations, 60 per cent of the global workforce in organisations possess skills needed to use AI solutions ethically and legally.

 

The focus on security vulnerabilities comes as the global average cost of data breaches has reached nearly $5 million in 2024, a 10 per cent increase from the previous year.

 

Supporting AI governance in companies in Asia Pacific would entail clear identified roles accountable for AI standards, followed by broadly understood principles and policies.

 

However, in this region, more than half of AI policies lacked timelines for implementation of associated governance goals.

 

People and skills continue to remain a challenge for organisations implementing AI. On average, 56 per cent of employees in an organisation have the skills to use AI responsibly, said the report.