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The only people I can see inducting Austin are Jim Ross (since we know that they're close), Vince McMahon (depending on if they want to break kayfabe), or Kennedy (if they're really as good of friends as he claims).
And it makes perfect sense for Austin to be inducted this year, what with the location, the WM number, and the possibility that he might have his final match.
Jim Ross seems like the most likely choice, I don't think anyone in WWE is closer friends with Austin than Ross, I think Vince once said that he wants to keep away from being the guy inducting people, or something, like that, and I don't think most fans are really aware that Kennedy and Austin are friends, it's not really common knowledge, more smark knowledge, so Ross would be the most logical option, and then their are always options like Bret Hart as TM said and possibly Ted Dibiase, I doubt either would happen but they are possibilities
True, if Vince did it, it would probably seem like favoritism. Then everybody else would be wondering why Vince doesn't want to do it for them as well.