India Leads in AI Investment Optimism

Indian companies are highly optimistic about AI investments, with 93% expecting positive returns within three years. The 'Value of AI Report 2025' reveals Indian firms exceed the global benchmark in AI spending. Challenges persist, but Agentic AI is set to enhance operations, with significant ROI expected.

Indian companies are demonstrating a bullish outlook on their investments in Artificial Intelligence (AI), with a recent survey indicating that a staggering 93 percent of organizations in the country expect positive returns on these investments within a three-year span. This confidence level is unparalleled among the surveyed nations.

The findings, detailed in the 'Value of AI Report 2025' released at SAP's TechEd 2025 in partnership with Oxford Economics, involved feedback from 1,600 senior business leaders across eight countries, with 200 respondents hailing from India. Notably, Indian firms are earmarking an average of USD 31 million towards AI this year, surpassing the global average of USD 26.7 million.

The substantial investment underscores a commitment to AI, spanning software, infrastructure, talent, and consulting. The report notes that businesses in India recorded an average return on investment (ROI) of 15% in 2025, with a projection to escalate to 31% within two years. Despite these advances, challenges such as fragmented AI practices and skills gaps pose significant hurdles.

(With inputs from agencies.)