AI workloads are growing faster than traditional data workloads, with Indian enterprises increasingly setting aside dedicated budgets for artificial intelligence even as they grapple with rising token costs, according to Snowflake India.
Vijayant Rai, Managing Director of Snowflake India, said companies have moved beyond AI pilots and are now deploying the technology at scale, prompting higher investments. While some organisations are reallocating existing IT budgets towards AI, others are creating separate budgets for AI initiatives.
"We are very clearly in discussions with customers who tell us that a certain percentage of their IT budget will now be allocated to AI. In some cases, it is part of the existing budget and has been reallocated, while in others, entirely new AI budgets are being created," Rai told The New Indian Express.
While the cost of AI models, particularly token consumption, remains a concern, enterprises are focusing on optimising costs rather than slowing adoption, he said.
"We're not seeing people holding back. They are trying to get a handle on the cost aspect and identify the best ways to optimise AI spending," Rai said.
According to Rai, enterprises are increasingly prioritising investments in data infrastructure before scaling up AI deployments.
"There is no AI strategy without a data strategy. Data has to be in one place so that you can get the most out of AI," he said, adding that trusted, governed and secure data is essential for generating reliable AI outcomes.
Snowflake is witnessing widespread AI adoption across its global customer base. Of its approximately 13,900 customers worldwide, nearly 13,600 are already using AI capabilities available on its platform.
"The trajectory is that customers are increasingly utilising AI for their business needs," Rai said, adding that India is following a similar trend, although the company did not disclose country-specific customer numbers.
He said financial services, retail, manufacturing and digital-native companies are among the fastest adopters of AI, using the technology across functions such as customer experience, fraud detection, risk management and supply chain operations.
Rai also described India as a strategic growth market for Snowflake, citing the country's expanding enterprise demand and deep technology talent pool. He said the company is working with industry bodies such as NASSCOM on AI and data-skilling initiatives while continuing to expand its enterprise footprint in the country.