Agentic AI Surge Sparks Bold Governance Push in India

Avinash
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Avinash
Avinash is a dedicated MBA professional with expertise in business operations, team management, and AI-driven content development. Backed by global certifications and published HR research, he...
The 2026 survey of 214 companies found risk and ethics reviews lead enterprise controls, while external audits remain the lowest priority at 28%.

Quick Take

  • The Agentic AI Surge has Indian firms tightening governance, with 51% favouring industry-specific rules over global standards.
  • Risk and ethics review frameworks top adoption at 51%, per the ET-Cisco AI Readiness and Adoption survey, 2026.
  • Most firms stay confident on DPDP compliance, betting on domestic frameworks like RBI FREE-AI over the next two years.

The Agentic AI Surge is pushing most Indian enterprises to build stronger governance and risk controls, as 51% prioritise industry-specific guidelines over global frameworks, according to the ET-Cisco AI Readiness and Adoption survey, 2026.

The survey covered 214 companies across trust, governance, and data privacy. It found that firms favour domestic rules such as the Digital Personal Data Protection (DPDP) regime and RBI guidance as agentic AI, software that acts on its own, moves from pilots into live workflows. Most firms remain confident on compliance.

StartupFeed Insight

The real signal in this data is the gap between ambition and control. Only 28% prioritise external audits, yet 47% want continuous monitoring of AI agents. That mismatch tells StartupFeed.in that founders are racing to deploy agents faster than they can independently verify them. Watch fintech and BFSI teams here, since RBI FREE-AI ties board-approved AI policies to real accountability. Our prediction: by mid-2027, third-party AI assurance will shift from a nice-to-have to a procurement requirement in regulated Indian sectors, and vendors without it will lose enterprise deals. By StartupFeed Desk.

Agentic AI Surge: Survey Breakdown

The Agentic AI Surge is reshaping corporate priorities, with risk and ethics review frameworks ranked the top control at 51%, per the ET-Cisco survey, 2026. The data shows governance is now a board-level concern, not an IT afterthought. Indian firms are choosing domestic rulebooks as their first reference point.

Metric Share Notes
Risk and ethics review frameworks 51% Top critical control for agentic AI
Identity and access control 48% Second most prioritised control
Continuous monitoring of AI agents 47% Live oversight of autonomous systems
Industry-specific guidelines preferred 51% RBI, Irdai, Sebi over global standards
Competitive positioning as driver 54% Top reason to invest in AI governance
External audits prioritised 28% Lowest-ranked control in the survey

The most striking number is competitive positioning at 54%, the single biggest driver of governance investment. Firms now see strong oversight as a market edge, not just a compliance cost.

About the ET-Cisco AI Readiness and Adoption Survey

The ET-Cisco AI Readiness and Adoption survey, 2026 is a joint study by The Economic Times and Cisco India and South Asia. It polled 214 companies across India on AI trust, governance, and data privacy. The research maps how enterprises adopt agentic AI, which controls they prioritise, and how confident they feel on the DPDP regime and sector-specific rules.

Why do Indian firms back domestic rules?

Indian firms back domestic rules because local frameworks map more closely to their regulators and risk needs. The survey found 51% prefer industry-specific guidelines from RBI, Irdai, and Sebi, while 31% lean on global standards like ISO or NIST. Sector leaders say the underlying logic is similar, but enforcement differs.

“While the possibilities of AI are vast, we are being extra careful to ensure that we do not take undue risks related to customer protection or risk management,” Ratan Kumar Kesh, chief operating officer, Bandhan Bank.

Sandeep Agarwal, chief technology officer for security at Cisco India and South Asia, noted that local frameworks like DPDP or RBI rules are structurally aligned with global benchmarks. Founders building for BFSI should treat RBI FREE-AI as a starting point for responsible deployment.

Where is AI security focus going?

AI security focus is shifting toward protecting an organisation’s own AI systems, named the top concern by 44% of firms in the ET-Cisco survey, 2026. Teams worry about misuse, manipulation, or data exposure as agents handle sensitive workflows. The next priorities are tighter regulatory alignment and clearer agent control.

Security Focus Area Share
Securing own AI systems against misuse 44%
Ensuring AI meets regulatory and compliance needs 38%
Governing how AI agents operate 33%
Deploying AI to detect and respond to threats 31%

What sets Indian enterprises apart is their confidence: 52% cite customer and partner trust as a governance driver, even as 46% feel regulatory pressure. The balance between speed and caution defines this market.

What’s Next

Expect agentic AI governance to harden across regulated sectors over the next 18 months. RBI FREE-AI and the DPDP regime will likely push board-approved AI policies into standard practice by 2027. Founders pitching enterprise buyers should prepare audit trails and access controls early. Will your startup treat AI governance as a feature or an afterthought?

Frequently Asked Questions

What is the Agentic AI Surge in India?
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The Agentic AI Surge is the rising rollout of self-acting AI across Indian enterprises. The ET-Cisco survey, 2026 found it is driving stronger governance, with 51% of firms prioritising risk and ethics review frameworks as their top critical control.

What is agentic AI?
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Agentic AI is software that can plan and act on its own to complete tasks, with little human input. Unlike chatbots that only respond, agentic systems take actions across workflows. This autonomy is why governance and monitoring matter so much for Indian firms.

Why do Indian firms prefer domestic AI rules?
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Indian firms prefer domestic rules because they map closely to local regulators. The survey found 51% favour industry-specific guidelines from RBI, Irdai, and Sebi over global standards like ISO or NIST. Leaders say the core logic is similar, but enforcement and context differ.

What is the RBI FREE-AI framework?
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FREE-AI stands for Framework for Responsible and Ethical Enablement of AI, from the Reserve Bank of India. It guides safe, accountable AI use in banking and mandates board-approved AI policies. Bandhan Bank cites it as a starting point for responsible AI deployment.

How confident are Indian firms on DPDP compliance?
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Most Indian firms remain confident on DPDP compliance, per the ET-Cisco survey, 2026. They align AI strategy with core DPDP principles such as consent, purpose limitation, and data minimisation. Some advisors urge caution, since the regime is still in early implementation.

Last updated: June 15, 2026 at 10:30 IST

Written by Avinash. Published: June 15, 2026. Updated: June 15, 2026. Have a tip? Write to us at editorial@startupfeed.in.

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Avinash is a dedicated MBA professional with expertise in business operations, team management, and AI-driven content development. Backed by global certifications and published HR research, he leverages innovation and strategic management to drive organizational success.