Bangalore, India — September 19, 2024: Pure Storage® (NYSE: PSTG), the IT pioneer that delivers the world’s most advanced data storage technology and services has released a new report highlighting the preparedness of enterprises in India to compete in a business landscape characterized by two key trends – AI and sustainability. The report, “India’s AI Journey: Balancing Innovation with Sustainable Growth” found that while AI is a top priority, companies are concerned about its impact on energy consumption and that meeting their ESG goals will become impossible without a modern robust IT infrastructure.
Industry Significance:
AI is rapidly emerging as a transformative power across various industries in India, driven by the urgent demand for innovation, increased productivity, and improved customer experiences. A recent report by TeamLease Digital indicated that AI could contribute approximately $450-500 billion to the nation's GDP by 2025, representing 10% of India's ambitious $5 trillion GDP goal. However, AI is also putting a strain on data centers by requiring more resources such as electricity, water and space. According to the International Energy Agency, data centers already account for 1 to 2 percent of global energy consumption, AI will push this up even more.
Survey Highlights:
- India's AI Momentum gaining traction: Over the next three years, 48% of respondents have prioritized AI to maintain their competitive edge. Currently, 52% of organizations have deployed AI technologies, 35% are piloting them, and 12% are still exploring integration strategies.
- Current AI Applications: AI is being leveraged across various functions, including marketing and sales, IT operations and fraud detection, reflecting its versatility. Today, 64% of the organizations use AI for their virtual assistant/chatbot function, 45% use AI across IT operations and cybersecurity reflecting the critical need for secure and efficient IT environments and 40% use it for new product development (NPD) and innovation.
- AI Adoption Across Sectors: The banking, financial services, and insurance (BFSI); technology, media, and telecommunications (TMT) sectors lead in AI adoption with 68% and 70% rates, respectively, while sectors like government, healthcare, and manufacturing show more cautious adoption, with higher percentages in the piloting phase. While tech and media sectors prefer cloud-based AI solutions, BFSI and government sectors lean towards on-premises solutions due to compliance and security concerns.
- IT infrastructure is a key challenge in AI deployment: To prepare for AI, 74% of organizations plan to upgrade data management tools and processes, 65% plan to enhance data storage infrastructure, and 61% plan to invest in data security and compliance to ensure secure and efficient data flows.
- Rising Energy Consumption and Sustainability Concerns: As AI technologies expand, the demand for supporting infrastructure has surged. 42% of organizations report a doubling in compute power needs, while 41% have seen their storage demands double. This growth also drives higher energy consumption, with 74% of organizations concerned about AI's impact on energy use and ESG goals.
Executive Insight:
