Amid all the buzz over Artificial Intelligence (AI), India Inc lacks a formal approach to AI risk evaluation and only 10 percent of Indian CEOs are confident about the reliability of their AI applications, a PwC India report said on Thursday.

Over 60 percent Indian businesses have adopted AI in some form, with over 50 percent of Indian CEOs planning to introduce AI initiatives over the next three years. However, the majority of organisations are yet to incorporate AI as an integral part of their business strategy, according to the report, titled "With AI's Great Power Comes Great Responsibility".

"It is encouraging to see Indian organisations adopt or willing to adopt AI significantly in the coming few years. However, to scale AI initiatives, organisations will have to ensure these solutions are ethically sound, compliant with all regulations, with a robust governance framework," said Deepankar Sanwalka, Leader-Advisory, PwC India.

Nearly 67 percent of the surveyed organisations in India are unsure of the regulatory compliance with respect to AI and have minimal understanding of tools needed for maintenance of data integrity, said the report which was based on a study conducted with over 1,000 CXOs and business decision-makers from India and other regions between May and September this year.

Even when using AI, businesses need to ascertain what benefits AI will offer them while being aware of their operations being vulnerable to any disruptions, it added.

"Merely adopting AI will not yield the desired results. AI must be supported by strong performance pillars addressing bias and fairness, interpretability and explainability, robustness and security," emphasised Sudipta Ghosh, Leader-Data and Analytics, PwC India.

Benefits of AI may be realised when an appropriate governance framework and dimensions are in place, and humans and machines can collaborate effectively.

"We need to ensure that AI acts in the interests of society at each stage of development," Ghosh added.

The report highlighted the implementation of the "Responsible AI" framework that can help organisations assess potential threats and mitigate foreseen or unforeseen risks.