Bengaluru [India], November 24 (ANI): Indian companies are increasingly optimistic about their investments in Artificial Intelligence, as a recent survey found that 93 percent of the nation’s organizations expect positive returns on their AI spending within three years. This marks the highest level of confidence among all countries surveyed.
The “Value of AI Report 2025,” unveiled at SAP’s flagship event TechEd 2025 in collaboration with Oxford Economics, surveyed 1,600 senior business leaders across eight countries, including 200 respondents from India.
Indian firms are investing an average of USD 31 million in AI this year, surpassing the global benchmark of USD 26.7 million. Spending spans software, infrastructure, talent, and consulting, indicating a broad-based commitment to AI-driven transformation.
Businesses in India reported an average ROI of 15 percent in 2025, with projections pointing to a rise to 31 percent within two years. More than half of respondents expressed satisfaction with their current AI returns, while 58 percent believe AI delivers faster returns than other technology investments—the highest share worldwide.
The report highlights that AI is rapidly becoming integral to business operations, strategic decision-making, and customer engagement. The technology currently supports 23 percent of business tasks, a figure expected to climb to 41 percent by 2027.
Companies are already seeing meaningful impact, with 36 percent reporting that AI has helped them overcome key operational challenges. Its influence spans multiple strategic areas, delivering better insights, driving innovation, and enhancing customer engagement. As organizations prepare for an AI-driven future, 78 percent are integrating AI into workforce planning through targeted skilling and reskilling initiatives, underscoring the vital role of human capability in scaling AI adoption.
Despite strong momentum, Indian businesses continue to face challenges hindering large-scale deployments. Nearly half of organizations say their AI efforts remain fragmented and limited to isolated initiatives rather than enterprise-wide programs. The skills gap is another major hurdle, with 64 percent stating that AI training for their workforce is still incomplete. Concerns about shadow AI persist, with businesses flagging risks such as inaccurate outputs, data leakage, security vulnerabilities, and compliance issues. Data readiness also poses difficulties, as only 42 percent feel confident in managing and integrating data effectively for AI transformation.
The study also highlights the emerging role of Agentic AI, with Indian firms expecting an additional 7 percent ROI—approximately USD 2.8 million—from such systems within two years. According to the report, 85 percent believe AI agents can significantly transform operations, 50 percent expect these systems to add substantial value by managing complex workflows, and 49 percent say Agentic AI will meaningfully influence strategic planning. (ANI)
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