Agentic AI returns in India are projected to increase significantly, reaching $14.4 million, with the AI return on investment set to surge from 22% to around 40% within the next two years, as per a report by enterprise application firm SAP. Indian organizations are swiftly transitioning from experimental phases to AI implementations driven by value, with 85% of firms witnessing agentic AI revolutionizing business operations.
India currently holds the second position globally in terms of strategic approaches to AI investments, with Indian organizations planning to invest $25.9 million in AI, anticipating a 45% growth in spending over the next two years. The report highlights that about 71% of Indian businesses have a clearly defined AI strategy that aligns with their business objectives. Presently, AI supports 33% of business tasks, a figure expected to rise to 51% within the next two years.
Moreover, 74% of businesses in India express satisfaction with the current AI return on investment, emphasizing the emergence of value creation as a crucial metric for success. The report forecasts that end-to-end, cross-functional AI adoption is set to more than double to 40% within two years. Additionally, 55% of Indian organizations have appointed dedicated AI leaders, the highest proportion globally.
Around 63% of organizations in India are now data-ready for AI, a significant increase from 42% last year, marking the highest year-on-year growth globally. Furthermore, 67% of Indian businesses are currently piloting agentic use cases. An overwhelming 80% of respondents agree that maximizing AI value necessitates workforce transformation beyond just upskilling.
Manish Prasad, President and Managing Director of SAP Indian Subcontinent, noted, “Customers are decisively moving beyond experimentation, integrating AI into the core of their businesses, and prioritizing it strategically.” He highlighted that India’s momentum, coupled with a robust digital foundation, a rich talent pool, and a vibrant innovation ecosystem, uniquely positions the country to lead the upcoming wave of enterprise transformation and shape how AI delivers tangible business value globally.
