Indian enterprises are charging ahead in the global race to adopt artificial intelligence, with 93% of organisations expecting positive returns from their AI investments within the next three years, according to the newly published SAP Value of AI Report 2025. The survey, which covers leaders across industries such as manufacturing, retail, BFSI, healthcare and IT services, highlights India as one of the most optimistic and aggressive adopters of enterprise AI.
The report positions India well above the global average in terms of adoption, ROI expectations, and readiness to scale AI across core business processes. It also signals a pivotal shift: AI has moved from experimental pilots to strategic, board-level initiatives aimed at improving operational efficiency, customer experience and revenue growth.
SAP’s study reveals that Indian organisations are no longer treating AI as an optional innovation layer. Instead, AI is being integrated deeply across:
- supply chain optimisation
- sales forecasting and revenue management
- customer service automation
- finance and compliance workflows
- HR talent intelligence and workforce planning
Many organizations are reliszing real benefits from AI. In India, businesses expect an average return on investment (ROI) of 15% from their AI projects in 2025. This ROI is projected to increase to 31% within just two years. Indian companies are investing $31 million in AI this year, which is more than the global average. They are focusing on spending for software, infrastructure, skilled workers, and consulting services.
“AI is changing the way companies work. It not only automates tasks but also helps make better and quicker decisions in important areas,” said Philipp Herzig, Chief Technology Officer at SAP SE. “At SAP, we use reliable business data along with AI that can think, act, and learn. This helps organizations solve complex problems in areas like finance, human resources, and supply chain management confidently. The real benefits of AI come when innovative ideas are put into action, making smart systems a natural part of how businesses operate.”
Key findings from the report:
Indian organizations are turning AI into measurable business value
- Indian businesses are investing US$31 million in AI across IT, infrastructure, talent, and consulting, ahead of the US$26.7 million global average.
- Organizational investments in AI are projected to rise by an average of 33% over the next two years. That investment is expected to drive ROI of 15% this year (an average of US$5.7m), which is expected to double in two years’ time to 31% ($15.3m).
- 56% are satisfied with current ROI on AI, and 58% expect AI initiatives to deliver positive ROI faster than other technology investments — the highest globally.
India’s Focus on AI Deepens, Driving Data-Led Growth and Impact
- Majority of businesses expect AI to be central to business processes, decision making, and customer offerings by 2030 with only 3% saying otherwise.
- Most businesses are scaling AI automation and experimenting with generative AI leading to AI supporting 23% business tasks today, rising to 41% in 2 years.
- AI has helped 36% of businesses address key challenges, driving better insights (44%), greater innovation (37%), and stronger customer engagement (36%).
- 78% are integrating AI into workforce planning through upskilling and reskilling to enable an AI-powered future.
Challenges to AI Adoption in India
- AI adoption remains fragmented, with 48% organisations reporting piecemeal investments and 27% pursuing department-led initiatives.
- AI skills remain a barrier to scale, with 64% organisations citing incomplete, comprehensive AI training.
- 67% of organizations remain concerned about shadow AI, with risks across inaccurate outputs (63%), data leakage (53%), security vulnerabilities (42%), and compliance violations (34%).
- While 42% of businesses report adequate data readiness for AI, more than half remain unsure about sharing and integrating data internally (52%) or with external partners (51%).
The Agent-Enabled Future of Business Transformation
- In the next two years, Indian businesses expect ROI of 7% (approximately US$2.8 million) from agentic AI
- 85% of Indian businesses rate AI agents as having moderate to high potential to transform operations with 50% agreeing that AI agents can add significant value to their business by managing complex workflows across business units.
- 49% businesses believe Agentic AI will significantly influence their strategic planning in the next two years.
With 93% of businesses expecting ROI within three years, Indian enterprises see AI not as an optional upgrade but as a strategic lever for competitive advantage. The coming years will test how well they can modernise data foundations, strengthen governance, and scale AI across core business functions.
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