93% of Indian firms expect quick returns on AI investment

New Delhi: Nearly 93% of Indian organisations surveyed expect positive returns on their AI investments within three years, reflecting growing confidence in the technology’s potential, according to the SAP Value of AI Report 2025.

Indian businesses are investing an estimated USD 31 million in AI this year, ahead of the global average of USD 26.7 million, with spending directed towards software, infrastructure, talent, and consulting. "Indian businesses are investing USD 31 million in AI across IT, infrastructure, talent, and consulting, ahead of the USD 26.7 million global average," the report noted.

The Value of AI Report 2025, released at SAP’s flagship TechEd 2025 event in collaboration with Oxford Economics, surveyed 1,600 senior business leaders across eight countries, including 200 respondents from India.

The study highlighted rising confidence among Indian businesses in AI. According to its findings, 93% of Indian organisations expect positive returns on their AI investments in less than three years, the highest level of confidence recorded across all countries surveyed.

"Organisations are already realising 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," the release said.

The report noted that the majority of businesses expect AI to become central to processes, decision-making, and customer offerings by 2030, with only 3% of respondents dissenting. "Most businesses are scaling AI automation and experimenting with generative AI, leading to AI supporting 23% of business tasks today, rising to 41% in two years," it added.

However, the report identified challenges to AI adoption in India. It found that implementation remains fragmented, with 48% of organisations reporting piecemeal investments and 27 % pursuing department-led initiatives. Skills shortages were also highlighted as a barrier to scaling AI.

The report also pointed to concerns over “shadow AI”, or unsanctioned use of AI tools by staff or end users without IT oversight. About 67% of organisations cited this as a concern, with risks including inaccurate outputs (63%), data leakage (53%), security vulnerabilities (42%), and compliance violations (34%).