Indian enterprises are emerging as global frontrunners in Artificial Intelligence (AI) adoption, with an overwhelming 93% of organisations expecting positive returns on their AI investments within the next three years — the highest confidence level recorded worldwide.
This insight comes from the Value of AI Report 2025, unveiled at SAP’s flagship TechEd 2025 event in Bengaluru. The study, conducted in partnership with Oxford Economics, surveyed 1,600 senior leaders across eight countries, including 200 from India.
India Outpaces Global AI Investments
According to the report, Indian companies are investing aggressively in AI, allocating an average of USD 31 million this year — significantly higher than the global average of USD 26.7 million.
These investments cover:
- AI software and platforms
- Scalable infrastructure
- Skilled AI talent
- Specialist consulting and support
This signals a strong, long-term commitment to AI-driven transformation across industries.
AI Already Delivering Solid Returns
Indian organisations reported an impressive 15% average ROI on AI in 2025, with expectations that this will double to 31% over the next two years.
Key findings include:
- 56% of businesses are satisfied with their existing AI returns
- 58% believe AI delivers faster ROI than any other technology — the highest sentiment globally
- AI currently supports 23% of all business tasks, a number expected to reach 41% by 2027
Notably, 36% of companies say AI has already helped them overcome critical operational challenges, making it a core driver of efficiency and innovation.
Where AI Is Making the Biggest Impact
Businesses reported strong gains across multiple strategic areas:
- 44%: Better decision-making insights
- 37%: Increased innovation
- 36%: Enhanced customer engagement
Additionally, 78% of companies are incorporating AI into workforce planning through targeted skilling and reskilling programs — a crucial step in preparing teams for an AI-centric future.
Challenges Remain: Skills Gap, Data Readiness & Shadow AI
Despite rapid progress, Indian firms still face hurdles that limit AI’s full-scale deployment:
1. Fragmented AI Programs
- 48% say AI initiatives remain isolated and not fully integrated across the enterprise.
2. Workforce Skill Shortages
- 64% reveal AI training is incomplete or inadequate within their teams.
3. Shadow AI Risks
Growing concerns include:
- Inaccurate outputs (63%)
- Data leakage (53%)
- Security vulnerabilities (42%)
- Compliance issues (34%)
4. Poor Data Preparedness
Only 42% feel confident in managing and integrating data effectively for AI.
Agentic AI: The Next Big Leap
The report highlights the rising potential of Agentic AI — autonomous systems capable of performing complex tasks and workflows.
Indian companies expect:
- 7% additional ROI (≈ USD 2.8 million) within two years
- 85% believe AI agents will significantly transform operations
- 50% expect major improvements in workflow management
- 49% anticipate Agentic AI will influence strategic planning
This marks a shift toward more intelligent, independent AI systems capable of reshaping enterprise productivity.
Conclusion
India’s position as the global leader in AI confidence and investment reflects a robust appetite for digital transformation.
With strong early returns, ambitious spending, and readiness to adopt advanced AI like Agentic systems, Indian enterprises are on track to shape the next wave of AI-driven innovation — provided they can bridge skill gaps, strengthen data systems, and deploy AI safely at scale.