Martin Schroeter, Chairman and CEO of Kyndryl (Photo | Kyndryl website)
Business

AI’s biggest challenge is industrialisation, not innovation: Kyndryl CEO

Schroeter sees India as one of the world’s most important proving grounds for industrial-scale AI deployment.

Dipak Mondal

The biggest hurdle facing artificial intelligence today is not the sophistication of algorithms but the ability to make them work reliably in the real world. That is the view of Martin Schroeter, Chairman and CEO of Kyndryl, who argues that while AI innovation has surged ahead, operational readiness has lagged behind.

Across the globe, enterprises are investing heavily in AI, yet many are struggling to translate pilots into measurable business outcomes. In India, the challenge is even more pronounced, with a majority of organisations reporting that AI initiatives stall after the proof-of-concept stage. The problem, Schroeter says, is not that the technology lacks intelligence — it is that AI has not yet been industrialised.

Deploying AI inside mission-critical systems such as banks, hospitals, transportation networks, energy grids and government platforms requires far more than powerful models. It demands integrated data across hybrid environments, infrastructure that can run 24/7 without failure, strong cybersecurity frameworks, regulatory compliance and a workforce prepared to work alongside AI agents. In a country like India, where systems operate at massive scale, any disruption can have direct consequences for millions of citizens. Reliability, transparency and trust are therefore essential.

Schroeter sees India as one of the world’s most important proving grounds for industrial-scale AI deployment. Under Prime Minister Narendra Modi, the country has built extensive digital public infrastructure and positioned AI as a strategic priority through initiatives such as Digital India and the IndiaAI Mission. These large-scale platforms create an environment where AI must function seamlessly across millions of transactions daily, raising the bar for resilience and governance.

Kyndryl’s India strategy is aligned with this shift from experimentation to execution. As a global IT infrastructure services provider, the company is focusing on modernising legacy systems and embedding AI into core enterprise operations. In sectors such as banking, telecom, citizen services and aviation, it is helping build scalable platforms capable of handling high transaction volumes. At Kempegowda International Airport in Bengaluru, for instance, Kyndryl has deployed agentic AI to transform IT operations from reactive troubleshooting to proactive, self-healing systems.

At the same time, the company is strengthening its cybersecurity footprint in the country. With AI accelerating both innovation and cyber threats, Kyndryl is opening a new cyber defence operations centre in Bengaluru to monitor and contain risks before they escalate. The emphasis is on ensuring that AI systems remain secure and compliant, particularly in regulated industries.

Workforce readiness forms the third pillar of its India plan. While business leaders expect AI to fundamentally reshape work, many organisations admit their employees are not yet prepared. Kyndryl is investing in digital and cybersecurity skills development through local partnerships to help bridge that gap, underscoring Schroeter’s belief that AI transformation is as much a human shift as a technological one.

For Kyndryl, the future of AI will not be determined by breakthrough research alone but by the ability to industrialise AI responsibly — embedding governance, auditability and security directly into systems. In India, where scale magnifies both opportunity and risk, that transition from intelligence to trust could define the next chapter of the AI revolution.

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