Bengaluru [India], November 24 : Indian companies are bullish about their investments in Artificial Intelligence (AI), as a recent survey found that 93 per cent of the nation's organisations expect positive returns on their AI investments within 3 years.
This is the highest level of confidence recorded 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, exceeding the global benchmark of USD 26.7 million.
Spending spans software, infrastructure, talent, and consulting, signalling a broad-based commitment to AI-driven transformation, the report mentioned.
Businesses in India reported an average ROI of 15% in 2025, with projections indicating a rise to 31% within two years.
More than half (56%) of respondents expressed satisfaction with current AI ROI, while 58% believe AI delivers faster returns than other tech investments, the highest share worldwide.
The report highlights that AI is rapidly becoming integral to business operations, strategic decision-making, and customer engagement.
AI is rapidly becoming embedded in core business functions, with the technology currently supporting 23% of business tasks, a figure projected to rise to 41% by 2027.
Companies are already seeing meaningful impact, as 36% report that AI has helped them overcome key operational challenges. Its influence spans multiple strategic areas, delivering better insights (44%), driving greater innovation (37%), and enhancing customer engagement (36%).
As organisations prepare for an AI-driven future, 78% are integrating AI into workforce planning through targeted skilling and reskilling initiatives, highlighting the critical role of human capability in scaling AI adoption.
Despite the momentum in AI adoption, Indian businesses continue to face notable challenges that hinder scalable deployment.
Nearly half (48%) of organisations report that their AI efforts remain fragmented and limited to isolated, piecemeal initiatives rather than enterprise-wide programs.
The skills gap is another major hurdle, with 64% of companies stating that AI training within their workforce is still incomplete or insufficient.
Concerns about shadow AI also persist, as businesses flag risks including inaccurate outputs (63%), data leakage (53%), security vulnerabilities (42%), and compliance violations (34%).
Additionally, data preparedness remains a weak spot, with only 42% of organisations feeling confident in their ability to manage, integrate, and share data effectively for AI-driven transformation.
The study also spotlights the emerging role of Agentic AI, with Indian firms expecting an additional 7% ROI (approx. USD 2.8 million) from such systems within two years.
It said that 85% believe AI agents can significantly transform operations, while 50% expect these systems to add substantial value by managing complex workflows. Further 49% say Agentic AI will meaningfully shape strategic planning.
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