India’s IT Boom: AI Adoption Faces Data Integration Hurdles

India’s IT Sector: A Booming Market Facing AI Integration Challenges

The Indian IT sector is experiencing a surge in demand for resources, leading many businesses to explore and adopt [[artificial intelligence]] (AI) solutions. A recent study shows that a whopping 93% of enterprise IT leaders in India plan to use AI agents within the next two years. This is [[breaking news]] for the tech market, indicating a significant shift towards AI-powered systems.

Data Integration: The Hurdle to AI Adoption

However, the path to AI adoption isn’t without its obstacles. The [[latest updates]] reveal a major challenge: data integration. A staggering 80% of enterprises cite this as a significant hurdle. The report also highlights that 95% of respondents struggle to integrate data across different systems. This means many companies can’t fully utilize the power of AI due to data silos. On average, only 29% of applications are connected, directly impacting the accuracy and usefulness of AI agents.

Increased IT Demand and Project Delays

This growing demand for AI solutions is putting a strain on already busy IT departments. The number of IT projects not finishing on time has increased to 29% in 2024, up from 26% in 2023. To make things more difficult, 86% of IT leaders predict a further increase in workloads. They expect an average 18% jump in projects between 2024 and 2025. This increased demand has led to a massive 61% rise in spending on IT staff, reaching an estimated average of $16.9 million in 2024, compared to $10.5 million in 2023.

AI: A Productivity Booster?

Despite these challenges, most IT leaders (93%) believe AI will improve developer productivity within the next three years. Those already using AI agents are even more optimistic, with 98% agreeing. This positive outlook underlines the potential of AI to streamline workflows and boost efficiency within the Indian IT sector.

Complex Infrastructures and Data Silos

The increasing number of applications and AI models is creating complex infrastructures and data silos. Around 90% of IT leaders see this as a business problem, which is even more pronounced among those already using AI agents (94%) compared to those who aren’t (87%). On average, organizations use 897 applications; organizations with AI agents use even more (1103), 45% higher than those without. The number of AI models has doubled, going from an average of nine in 2024 to 18 in 2025. This complexity is limiting the full potential of AI agents.

APIs: A Path to Better Integration

The solution? Businesses can improve their data architecture and get the most out of AI agents by combining integration and AI strategies. For companies using AI agents, those leveraging APIs are seeing significant improvements. Many are using APIs to improve IT infrastructure (56%), enable data sharing (49%), and integrate different systems (46%).

Benefits of API Integration

The benefits are clear. Companies using APIs are reporting increased productivity (49%), faster responses to business needs (49%), better employee engagement and collaboration (47%), more innovation (46%), and teams managing their own IT needs (46%). A significant 37% of IT teams are using APIs to make their application development more efficient. IT leaders estimate that APIs and related implementations generate an average of 40% of company revenue – even higher (45%) for organizations using AI agents. This shows the importance of integrating AI and API strategies for success in India’s tech landscape. This is a major [[business news]] story for today’s [[global market]].

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