
Indian businesses are increasingly moving beyond Artificial Intelligence (AI) pilot projects to full-scale deployment, with companies beginning to see measurable benefits from the technology. However, challenges related to costs, skilled professionals and infrastructure continue to influence the pace of adoption, according to Oracle India head Shailender Kumar.
Speaking to PTI on the sidelines of Oracle AI World 2026, Kumar said Indian enterprises have made significant progress in adopting AI over the past 18 months. While companies were primarily experimenting with pilot projects earlier, many are now implementing AI solutions across their operations and seeing tangible results.
Kumar, Senior Vice President and Regional Managing Director of Oracle India and NetSuite JAPAC, said Indian businesses are willing to adopt new technologies when they can clearly understand the benefits, including time savings, lower costs and improved business performance.
Key Highlights
- Indian businesses are moving from AI pilot projects to full-scale production and deployment.
- Oracle India head Shailender Kumar identified cost, skills and infrastructure as key challenges to AI adoption.
- Oracle is working with universities, colleges and state governments to develop AI-related skills.
- Kumar said AI governance is essential to ensure technology produces reliable outcomes and is used appropriately.
- Oracle has recorded double-digit growth in India for around 10 years and aims to accelerate business growth over the next three to five years.
Indian Businesses Move From AI Experiments to Full-Scale Deployment
According to Kumar, the approach of Indian companies towards artificial intelligence has changed considerably. Around a year and a half ago, discussions largely focused on testing AI through pilot projects. Today, businesses are increasingly deploying the technology in real production environments.
He said these deployments are delivering tangible benefits, indicating that AI adoption is gradually moving beyond experimentation.
Indian companies are not necessarily reluctant to embrace new technology. Instead, they want evidence that an investment will deliver meaningful results before adopting it at scale.
Kumar explained that businesses evaluate whether AI can save time, reduce operational expenses or improve performance. Earlier concerns about security and technology performance also influenced adoption decisions, but visible business benefits are encouraging companies to move forward.
Cost, Skills and Infrastructure Remain Major AI Challenges
Despite growing interest in artificial intelligence, several challenges could slow its expansion across Indian businesses. Kumar identified cost as one of the major factors influencing AI adoption.
Implementing AI solutions across an organisation can require investment in technology, infrastructure and skilled employees. Companies therefore need to evaluate whether the expected benefits justify the costs involved.
Shortage of AI Skills
Access to trained professionals is another important challenge. As businesses expand their use of AI, they need employees who can develop, implement, manage and evaluate AI-based systems.
Kumar said Oracle is working with universities, colleges and state governments to support skill development. These initiatives also extend to industrial training institutes (ITIs) and polytechnics, helping students gain exposure to emerging technologies.
Such partnerships are intended to strengthen the talent pipeline and prepare students for changing technology requirements.
Infrastructure Development
Infrastructure is another factor affecting AI adoption in India. Kumar acknowledged that it remains a challenge but said the situation is being addressed through the development of new data centres across the country.
Data centres provide the computing capacity and infrastructure required to run AI applications and process large volumes of information. Their expansion can support businesses looking to deploy AI solutions at a larger scale.
Oracle India Head Says AI Governance Is Essential
As companies increasingly rely on artificial intelligence, questions about the balance between automated decisions and human oversight are becoming more important.
Kumar said governance should be a central part of every organisation’s AI strategy. Businesses need people who can assess whether AI systems are producing accurate outcomes and operating according to their intended purpose.
Human oversight is particularly important when AI tools influence business decisions or handle sensitive processes. Organisations must establish appropriate controls to evaluate the technology’s performance and identify potential problems.
Kumar also expects AI regulations to evolve as the industry matures. He pointed to incidents involving AI models behaving unexpectedly as an indication of why governance and regulatory frameworks will become increasingly important.
AI Regulation Expected to Evolve as Industry Matures
Beyond internal company policies, regulatory oversight will also play a role in shaping the future of artificial intelligence.
Kumar said changes in regulation are expected as governments and industry participants gain more experience with the technology. The development of AI applications has created new questions around accountability, security and the appropriate use of automated systems.
As adoption expands, businesses will need to consider both technological performance and compliance requirements. Strong governance structures could help organisations manage risks while continuing to benefit from AI-driven innovation.
Oracle’s Presence and Growth in India
Oracle has operated in India for 33 years and has a presence in more than 15 cities. Kumar said the company has recorded double-digit growth in the country for approximately a decade.
Banking is Oracle’s largest business sector in India, followed by the public sector. Kumar also noted that all four telecom operators in the country use Oracle’s technology.
The company’s presence across banking, government and telecommunications highlights the importance of Indian enterprises and public institutions to its domestic operations.
Oracle Targets Faster Growth Over the Next Three to Five Years
Looking ahead, Kumar said his priority over the next three to five years is to accelerate Oracle’s business growth in India.
He believes the Indian market has considerable potential and wants the company’s business to grow faster than its current pace. The expansion of AI adoption across industries could provide additional opportunities for technology providers such as Oracle.
Kumar also acknowledged that geopolitical developments remain an external uncertainty. However, he described India’s broader position as favourable and said the country was moving in the right direction.
Why India’s AI Adoption Matters for Businesses
The shift from pilot projects to full-scale AI deployment represents an important stage in the development of India’s technology sector. Businesses are increasingly evaluating artificial intelligence based on practical outcomes rather than simply experimenting with new tools.
However, the long-term success of AI adoption will depend on more than technology investment. Companies will need affordable solutions, trained employees, reliable infrastructure and governance systems that ensure responsible use.
Collaboration between technology companies, educational institutions and governments could help address some of these challenges. Expanding data centre capacity and developing AI skills may also support wider adoption across industries.
Conclusion
India’s artificial intelligence ecosystem is moving towards wider commercial deployment as businesses shift from pilot projects to full-scale implementation. Oracle India head Shailender Kumar believes companies are increasingly willing to adopt AI when they can see clear benefits in terms of productivity, costs and operational performance.
Cost, skills and infrastructure remain important challenges, while governance and regulation will become increasingly significant as AI use expands. With Oracle targeting faster growth and Indian businesses increasing their investments in the technology, the coming years could be important for the country’s AI development.
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