Indian enterprises are embracing artificial intelligence (AI) with unprecedented confidence. According to the SAP Value of AI Report 2025, unveiled at SAP TechEd, 93% of Indian organizations expect positive returns on AI investments within three years—the highest level of optimism globally.
The study, conducted with Oxford Economics, surveyed 1,600 senior leaders across eight countries, including 200 from India. Findings reveal that Indian businesses are already realizing tangible benefits, reporting an average ROI of 15% from AI initiatives in 2025, projected to double to 31% within two years. This surge is backed by aggressive investments—US$31 million per organization this year, outpacing the global average of US$26.7 million.
“AI is transforming how businesses operate, not just by automating tasks, but by enabling smarter, faster decisions across mission-critical processes,” says Philipp Herzig, Chief Technology Officer, SAP SE. “The real value of AI emerges when innovation meets execution, making intelligent systems a seamless part of how businesses run.”
“AI is transforming how businesses operate, enabling smarter, faster decisions across mission-critical processes.” – Philipp Herzig, CTO, SAP SE
Key insights from the report include:
- Scaling AI adoption: AI supports 23% of business tasks today, expected to rise to 41% in two years.
- Driving impact: 36% of businesses report AI has helped address key challenges, improving insights, innovation, and customer engagement.
- Workforce readiness: 78% of organizations are integrating AI into workforce planning through upskilling and reskilling.
- Challenges remain: 64% cite lack of comprehensive AI training, while 67% express concerns over shadow AI risks like data leakage and compliance violations.
Indian enterprises are also exploring Agentic AI, with 85% rating its potential as transformative for operations and strategic planning.
With India accounting for 16% of the global AI talent pool, SAP sees this as a pivotal moment to partner with businesses in embedding AI into decisions, operations, and customer experiences—driving sustainable growth in the DPDPA era.