Artificial intelligence (AI) has shifted from a futuristic concept to a transformative reality in Indian businesses. From banking and healthcare to telecom and emerging tech startups, AI systems are increasingly driving decisions that affect millions of lives. But with this power comes responsibility. The question on every executive’s mind is no longer just “How do we adopt AI?”, but “How do we adopt AI responsibly?”
A new report by the National Association of Software and Service Companies (Nasscom) reveals a promising trend: 60% of Indian firms confident in scaling AI have mature frameworks for responsible AI (RAI) in place, reflecting a growing recognition that ethics, transparency, and accountability are central to AI’s success.
From Awareness to Action
The Nasscom survey, which collected insights from 574 senior executives across large enterprises, SMEs, and startups, shows significant progress compared to 2023. About 30% of firms already have mature RAI practices, while 45% are actively implementing formal frameworks.
This growth indicates that Indian businesses are increasingly embedding ethical considerations into AI strategies—moving beyond pilot projects to systemic adoption. While gaps remain in data access and regulatory clarity, the trend signals that responsibility is becoming a strategic priority rather than a compliance afterthought.
Large Enterprises Lead, Smaller Firms Catch Up
Not all companies are at the same stage of readiness. Large enterprises currently lead, with 46% having mature RAI frameworks, driven by their global exposure and complex operational requirements. SMEs and startups, however, are rapidly closing the gap, with 20% and 16% maturity levels, respectively.
The takeaway is clear: responsible AI is not just a checkbox for big firms. Even smaller companies, aware that ethical missteps can undermine trust and growth, are actively building frameworks for accountability and transparency.
Sectoral Trends: BFSI and TMT at the Forefront
Some sectors are advancing faster than others. According to the report:
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Banking, Financial Services, and Insurance (BFSI) lead with 35% maturity, reflecting strict regulatory oversight and the critical nature of financial decisions.
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Technology, Media, and Telecommunications (TMT) follow closely at 31%, leveraging AI for customer engagement, content moderation, and network optimization.
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Healthcare, with 18% maturity, is emerging as a key focus area, as AI increasingly supports diagnostics, patient care, and research.
Across these sectors, nearly half of companies are actively advancing responsible AI practices, signaling that accountability is becoming embedded in corporate culture.
Workforce Readiness: People at the Centre of Responsible AI
A standout insight from the report is the emphasis on training and awareness. Nearly nine out of ten organisations are investing in workforce sensitization, ensuring employees understand the ethical, legal, and operational dimensions of AI.
This focus highlights an important truth: technology alone cannot guarantee responsibility. Human judgment, oversight, and values remain essential in designing and deploying AI systems that are fair, transparent, and accountable.
Confidence Meets Caution
Organizations report the highest confidence in meeting data protection obligations, reflecting mature privacy frameworks and strong regulatory compliance. However, challenges remain in monitoring AI systems over time to ensure they continue to operate ethically. Executives are also calling for clearer guidelines, better access to data, and streamlined regulatory frameworks to support responsible deployment.
Why Responsible AI Is Non-Negotiable
As AI increasingly drives critical decisions—approving loans, guiding medical treatments, or allocating public resources—responsibility becomes a business imperative. Ethical lapses can erode public trust, invite regulatory penalties, and undermine innovation.
Sangeeta Gupta, Senior VP and Chief Strategy Officer at Nasscom, stresses that India’s AI leadership will depend not only on adoption but on how inclusively, transparently, and ethically AI systems are deployed.
The Road Ahead: Scale with Trust
India’s AI journey is entering a pivotal phase. The nation has the talent, infrastructure, and entrepreneurial energy to become a global AI powerhouse. Yet long-term success hinges on the ability to balance scale with accountability.
The good news is that Indian businesses are increasingly recognising that responsible AI is a strategic advantage, not just a regulatory requirement. By investing in frameworks, workforce training, and sectoral governance, companies are positioning themselves to harness AI’s potential while earning trust from customers, regulators, and global partners.
As AI adoption deepens across India, the lesson is clear: responsibility is not optional—it is the foundation of sustainable innovation. Firms that scale AI responsibly today are likely to define the country’s AI leadership tomorrow.