Agentic AI returns in India set to grow fivefold to $14.4 mn in two years: SAP report
Synopsis
Key Takeaways
Agentic AI returns in India are projected to grow fivefold to $14.4 million within two years, while overall AI return on investment (ROI) is expected to nearly double from 22 per cent to approximately 40 per cent, according to a report released on Friday, 12 June. The findings, from enterprise application firm SAP, signal that Indian organisations are rapidly transitioning from AI experimentation to value-driven, strategic implementation.
India's AI Investment Ambitions
Indian organisations plan to invest $25.9 million in AI, with spending expected to grow by 45 per cent over the next two years, according to the report. India currently ranks second worldwide in strategic approaches to AI investment — a position underpinned by the fact that 71 per cent of Indian businesses already have a defined AI strategy aligned with their business goals.
AI currently supports 33 per cent of business tasks across surveyed organisations, a figure expected to rise to 51 per cent within two years. End-to-end, cross-functional AI adoption is forecast to more than double, reaching 40 per cent in the same period.
Agentic AI and Operational Transformation
A striking 85 per cent of Indian firms surveyed believe agentic AI will transform their business operations. Around 67 per cent are already piloting agentic use cases, reflecting a decisive shift from theoretical adoption to active deployment.
Notably, 55 per cent of Indian organisations have appointed dedicated AI leaders — the highest share globally. This governance push coincides with a sharp improvement in data readiness: 63 per cent of organisations now consider themselves data-ready for AI, up from 42 per cent last year, marking the highest year-on-year growth worldwide.
ROI Confidence and Workforce Transformation
Around 74 per cent of Indian businesses reported satisfaction with their current AI ROI, with value creation emerging as the primary measure of success. However, the report also highlights that 80 per cent of respondents agreed that maximising AI value requires workforce transformation that goes beyond conventional upskilling — pointing to deeper organisational restructuring ahead.
What Industry Leaders Are Saying
Manish Prasad, President and Managing Director of SAP Indian Subcontinent, said: 'Customers are moving decisively beyond experimentation, embedding AI into the core of their business and making it a strategic priority.' He added that India's strong digital foundation, deep talent pool, and vibrant innovation ecosystem uniquely position the country to lead the next wave of enterprise transformation and define how AI delivers real business value globally.
What This Means Going Forward
This comes amid a broader global race to operationalise AI at scale, with India emerging as a front-runner in enterprise adoption metrics. The convergence of rising data readiness, dedicated AI leadership, and aggressive investment timelines suggests the next two years will be pivotal in determining whether India's AI ambitions translate into measurable economic output. Execution quality — particularly on workforce transformation — will be the critical variable to watch.