SAP, a global leader in enterprise application software and business AI, unveils a new AI adoption study highlighting the growing confidence of Indian businesses in the value and potential of AI. According to the findings, 93% of Indian organizations expect positive returns on their AI investments in less than three years — the highest level of confidence recorded among all countries surveyed.
Unveiled at SAP’s flagship event, TechEd 2025, the Value of AI Report 2025, in collaboration with Oxford Economics, surveyed 1,600 senior business leaders across eight countries, including 200 respondents from India.
Organisations are already realizing tangible value from AI, with Indian businesses reporting an average return on investment (ROI) of 15% from AI initiatives in 2025, projected to reach 31% within just two years. Fuelling this momentum, businesses across the country are investing US$31 million in AI this year — outpacing the global average — with focussed spending on software, infrastructure, talent, and consulting.
“AI is transforming how businesses operate, not just by automating tasks, but by enabling smarter, faster decisions across mission-critical processes,” said Philipp Herzig, Chief Technology Officer, SAP SE. “At SAP, we combine trusted business data with AI that reasons, acts, and learns — helping organizations tackle complex challenges in finance, HR, and supply chain with confidence. The real value of AI emerges when innovation meets execution, making intelligent systems a seamless part of how businesses run.”
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.
Indian enterprises are driving real business outcomes by adopting AI. JK Cement, a leader in the building materials industry, has cut procurement processing time by nearly 50% using SAP Business AI and data cloud, and is now scaling these efficiencies across departments. Similarly, ABB, a global technology player in electrification and automation, is boosting productivity in the industrial sector by streamlining workflows with automation and gaining real-time insights through the Joule copilot—all powered by SAP Business AI. Advancing this momentum, WIPRO a leading technology services and consulting company is leveraging SAP Joule for consultants to harness generative AI and help clients worldwide drive secure, resilient, and sustainable growth.
“AI is central to how businesses create value. With over 600,000 professionals, India accounts for 16% of the global AI talent pool, making it a true AI powerhouse. This depth of digital talent is enabling enterprises to shift from pilots to performance embedding AI into decisions, operations, and customer experiences. At SAP, we see this as a pivotal moment to partner with Indian businesses, combining trusted data, embedded intelligence, and world-class talent to drive sustainable growth.” saidSindhu Gangadharan, MD, SAP Labs India and Head, SAP Customer Innovation Services, SAP.
In a fast-changing business landscape, AI is already delivering real value — and the potential ahead is even greater. Innovations like Agentic AI are driving efficiency, agility, and growth. At SAP, we unlock AI’s full potential by combining mission-critical applications, trusted data, and embedded intelligence. Together, they create a flywheel of continuous improvement and long-term performance.