Nearly 93% of Indian organisations expect to see positive returns on their artificial intelligence investments within three years, reflecting growing confidence in AI’s value, according to the SAP Value of AI Report 2025.
SAP said Indian companies are projected to invest about USD 31 million in AI this year—well above the global average—with spending focused on software, infrastructure, talent and consulting. The report, released at SAP’s TechEd 2025 and produced with Oxford Economics, surveyed 1,600 senior business leaders across eight countries, including 200 from India.
The study found India recorded the highest confidence levels among all nations surveyed, with a majority of businesses already reporting tangible gains. Indian companies said their current average return on AI investment is 15% in 2025, a figure expected to rise to 31% within two years.
Most businesses said AI will become central to operations, decision-making and customer offerings by 2030, with only a small fraction disagreeing. Companies reported that AI handles about 23% of business tasks today, a share projected to grow to 41% in two years as automation and generative AI scale up.
However, the report noted that adoption remains uneven. Nearly half of organisations said their AI investments are fragmented, while 27% rely on department-led efforts. A shortage of AI skills continues to limit broader deployment.
The report also highlighted concerns about “shadow AI,” or the unsanctioned use of AI tools without IT oversight. About 67% of organisations expressed worry about such use, citing risks including inaccurate outputs, data leakage, security vulnerabilities and compliance issues.
