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91% Indian Firms Pilot Workplace AI, But Scaling Remains Tough

A new JLL report reveals that 91% of Indian companies are now piloting Artificial Intelligence in workplace and office management, a dramatic increase from less than 5% in 2023. The primary drivers are cost reduction and improved space utilization, with 93% of senior executives ranking it as a key objective. However, scaling AI into daily operations to achieve measurable savings is proving difficult, hampered by outdated systems and a lack of coordinated strategy. By 2030, a significant shift is expected with more real estate heads reporting directly to Chief Technology Officers, signaling offices becoming technology platforms.

Key Points: 91% Indian Companies Now Piloting Workplace AI: JLL Report

  • AI adoption up 18x in 2 years
  • 57% lack clear AI strategy
  • 93% prioritize cost reduction
  • 29% face tech talent shortage
2 min read

91 pc Indian firms now pilot workplace AI: Report

JLL report shows 91% of Indian firms are piloting AI in offices, but scaling for real savings is challenging. Cost reduction is a top priority.

"Companies that set clear targets, improve data quality and upgrade outdated systems will move ahead, while others may struggle. - Ajit Kumar, JLL"

Bengaluru, Feb 25

Artificial Intelligence has moved from being "interesting" to "urgent" for India's Corporate Real Estate teams, which manage office spaces, workplace operations and location strategy, a new report said on Wednesday.

According to data compiled by JLL, 91 per cent of companies are now piloting AI in office and workplace use cases, a sharp jump from less than 5 per cent in 2023.

The report showed that India Inc is rapidly embracing AI to reduce costs and improve space utilisation.

Ajit Kumar, Managing Director (Work Dynamics Accounts) West Asia at JLL, said AI adoption in India has increased 18 times in just two years.

However, he added that the real challenge now is proving measurable savings and performance improvements.

"Companies that set clear targets, improve data quality and upgrade outdated systems will move ahead, while others may struggle," Kumar mentioned.

The report said that although AI is being widely tested in Indian workplaces, scaling it into daily operations that actually save money or boost efficiency is proving difficult.

Many companies are experimenting, but systematic and large-scale integration is still a work in progress, as per the report.

The urgency around AI is rising as global firms review their India office strategies and hybrid work policies.

Cost reduction through smarter office space decisions has become a top boardroom priority, with 93 per cent of senior executives ranking it as a key business objective.

By 2030, about 33 per cent of workplace real estate heads are expected to report directly to Chief Technology Officers, compared to 16 per cent currently.

This signals a shift towards running offices as technology-driven platforms rather than static assets.

However, outdated infrastructure remains a big hurdle. The study found that 57 per cent of organisations do not have a clearly defined AI strategy, leading to scattered pilot projects instead of coordinated plans.

Nearly 29 per cent also face talent shortages in technology strategy, which slows down execution.

Dr Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, said many organisations are trying to run advanced AI systems on old and disconnected technology platforms.

He noted that 93 per cent of companies are now allocating budgets to upgrade outdated systems, with 58 per cent treating infrastructure upgrades as a strategic priority.

- IANS

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Reader Comments

P
Priya S
As someone in HR, I see this daily. Everyone wants AI for workplace analytics, but the data is a mess. 57% without a clear strategy is worrying. You can't build a skyscraper on a weak foundation.
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Vikram M
Cost reduction is the main driver, which makes sense. With hybrid work here to stay, using AI to optimize office space is a no-brainer. But the talent shortage (29%) is a real bottleneck we need to address.
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Sarah B
Interesting to see the shift towards CTOs managing real estate. It signals that offices are becoming tech platforms. The challenge of running new AI on old systems is a global one, not just India.
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Rohit P
Pilot projects are easy. The real work is integration. Hope this leads to smarter, more efficient offices and not just another buzzword for annual reports. The 93% budgeting for upgrades is a positive sign.
M
Meera T
While the adoption is impressive, I respectfully disagree with the purely cost-focused approach. AI should also enhance employee experience and well-being in the workplace, not just squeeze out savings. That's the true measure of success.

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