Majority of leading business houses in India, with annual turnover of over Rs 5,000 crore, are planning to increase their investment in artificial intelligence and machine learning technology by 10-30 per cent in 2024, a survey by CIO&Leader said on Thursday.

The 2nd Annual CIO&Leader State of Enterprise Technology (SET) Survey, conducted in partnership with research firm BM Nxt claims to have covered over 350 chief information officers and IT decision-makers found that 78 per cent of respondents want to invest in AI and ML to improve customer experience and engagement.

"With 76 per cent of organizations planning to invest more in AI/ML projects, the survey underscores the growing recognition of these technologies as pivotal drivers of competitive advantage and operational excellence," the survey said.

The study, based on a survey combining both qualitative and quantitative approaches, was conducted between May to July 2024.

"In 2024, 37 per cent of enterprises foresee a significant increase (25 to 30 per cent and above increase) in their AI and ML budgets, reflecting a marked rise from 25% in 2023. By comparison, 39 per cent of enterprises plan to somewhat increase their spending (10-24 per cent) versus 43 per cent in the previous year," the survey said.

According to the survey report, 72 per cent want to enhance the use of AI and ML for discovering useful insights to improve decision-making, 74 per cent for innovation or improving products and services, 67 per cent to make processes more efficient and cut costs, 64 per cent to increase operational agility, 61 per cent to develop new data-driven business model, 60 per cent to increase revenue etc.

"The significant investments in these technologies signal a shift towards more data-driven decision-making and a greater focus on leveraging AI for strategic advantage.