According to Lenovo’s latest CIO Playbook 2025 research, AI spending in India is set to increase 2.7 times, with generative AI accounting for 43% of implementation expenditures by 2025. The study, based on an IDC survey of over 2,900 respondents including 900+ IT and business decision-makers across 12 Asia Pacific markets, highlights a significant shift toward ROI-driven AI investments.
Despite increasing budgets, AI adoption in India remains in early stages, with 49% of organizations either evaluating or planning to implement AI within the next year. Return on investment has emerged as the primary barrier to quicker adoption, with Asia Pacific organizations expecting a 3.6x ROI on average from their AI projects.
Governance, risk, and compliance (GRC) has become the top priority for CIOs in Asia Pacific, rising 12 positions in importance since last year. However, implementation lags with only 19% of Indian CIOs reporting fully implemented enterprise AI GRC policies, compared to 25% across Asia Pacific.
The research identifies sales as the leading AI use case in India, followed by marketing and software development. This differs slightly from the broader Asia Pacific region, where IT operations, cybersecurity, and software development take precedence.
Infrastructure preferences show 63% of Indian organizations opting for on-premise or hybrid solutions to power AI workloads, mirroring the global trend of 63%. This preference stems from requirements for secure, low-latency environments and operational flexibility.
For AI-powered PCs, 53% of Indian organizations are in the planning stage for adoption, suggesting future growth in this segment as the technology proves its value.
Professional AI services are gaining traction, with 29% of Indian CIOs actively leveraging these partnerships and an additional 54% exploring or planning such engagements to address challenges in data management, talent shortages, and cost efficiency.
The study indicates a maturing AI landscape in India with organizations taking measured approaches to implementation while focusing on improving regulatory compliance, enhancing customer experience, and accelerating time to market.