Are Indian Companies the Most Optimistic About AI Returns?
Synopsis
Key Takeaways
- 93% of Indian firms expect positive AI returns in 3 years.
- Average AI ROI is forecasted to reach 31% by 2027.
- Indian businesses are investing $31 million in AI this year.
- Investment in AI is expected to rise by 33% over the next two years.
- India boasts 16% of the global AI talent pool.
New Delhi, Nov 24 (NationPress) Approximately 93 percent of Indian enterprises anticipate positive returns from their artificial intelligence (AI) investments within a span of three years, showcasing the highest confidence level compared to all surveyed nations, according to a report released on Monday.
The analysis conducted by the German software giant SAP, in collaboration with Oxford Economics, indicates that Indian firms have already realized an average AI return on investment of 15 percent in 2025, which is projected to escalate to 31 percent in the next two years.
This year, Indian businesses are investing $31 million in AI—surpassing the $26.7 million global average—with particular focus on software, infrastructure, talent, and consulting.
Investment in AI within organizations is expected to increase by an average of 33 percent over the upcoming two years, which will likely boost ROI to 15 percent this year (averaging $5.7 million), projected to double to 31 percent ($15.3 million) in two years.
“AI is revolutionizing business operations, not only by automating tasks but also by enabling quicker, more intelligent decision-making across vital processes,” stated Philipp Herzig, Chief Technology Officer at SAP SE.
About 56 percent of Indian respondents expressed satisfaction with current ROI, and 58 percent expected AI initiatives to yield positive ROI faster than other technology investments—the highest globally.
With over 600,000 professionals, India constitutes 16 percent of the global AI talent pool, establishing itself as a prominent AI hub, remarked Sindhu Gangadharan, Managing Director of SAP Labs India and Head of SAP Customer Innovation Services.
“This wealth of digital talent allows enterprises to transition from pilot projects to substantial performance, integrating AI into decision-making, operations, and customer experiences,” she added.
The report is based on a survey involving 1,600 senior leaders from eight countries, including 200 respondents from India.