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93% of Indian Businesses Forecast Positive AI ROI Within Three Years, SAP Report Finds
A new SAP report shows 93% of Indian businesses expect positive returns on AI investments within three years, underscoring AI's growing role in India’s economic and workforce transformation.
Bengaluru, India — Ninety-three percent of Indian businesses expect to see positive returns on their artificial intelligence (AI) investments within the next three years, according to the latest SAP Value of AI Report 2025 released this month. The report, which surveyed over 1,500 enterprises across India, highlights a strong confidence in AI’s ability to enhance operational efficiency, drive revenue growth, and improve customer experiences. This optimism comes amid a global push for digital transformation accelerated by supply chain disruptions, labor market shifts, and competitive pressures. India’s rapid adoption of AI technologies reflects a broader trend of integrating automation and data-driven decision-making into business strategies. As companies invest heavily in AI infrastructure, talent, and partnerships, the report underscores the critical role AI plays in shaping the future of Indian industry and workforce development.
AI investment Optimism Reflects India’s Digital Ambitions
The SAP Value of AI Report 2025 reveals that Indian enterprises are among the most bullish globally on AI returns, with 93% projecting positive financial outcomes by 2028. This surpasses many other markets, where expectations are more tempered due to regulatory uncertainty and slower adoption rates. Executives cite AI’s impact on improving supply chain resilience, optimizing customer service through chatbots and predictive analytics, and accelerating product innovation as key drivers of expected ROI. The report also notes that 74% of Indian businesses are planning to increase AI-related hiring and reskilling efforts over the next two years, signaling a commitment to building AI capabilities internally.[1]
India’s government policies supporting AI research, including the National AI Strategy launched by NITI Aayog in 2018, have provided a framework for private sector growth. This strategic alignment between public initiatives and corporate investment has helped position India as a leading AI hub in Asia.
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Read More →However, this growth will require significant upskilling and reskilling of the workforce to meet the demands of AI-integrated jobs.[2] The SAP report complements these findings by emphasizing the need for continuous learning programs.
Context: AI’s Role in India’s Economic and Workforce Transformation
India’s economy is undergoing a digital transformation driven by AI, automation, and cloud computing. The country’s IT services sector, which contributes nearly 8% to GDP, has been an early adopter of AI-powered tools to increase productivity and reduce costs. According to a 2024 report by the World Economic Forum, AI could add up to $957 billion to India’s GDP by 2030, largely through enhanced labor productivity and innovation in manufacturing and services. However, this growth will require significant upskilling and reskilling of the workforce to meet the demands of AI-integrated jobs.[2]
The SAP report complements these findings by emphasizing the need for continuous learning programs. It found that 68% of Indian companies have launched or expanded AI training initiatives, often in partnership with educational institutions and technology providers.
Balancing AI Benefits with Workforce Challenges
Despite widespread optimism, Indian businesses acknowledge challenges in realizing AI’s full potential. Talent shortages remain acute, with 56% of respondents citing difficulty in recruiting skilled AI professionals as a major barrier. Additionally, concerns around data privacy, ethical AI use, and integration with legacy systems complicate deployment. Some industries, particularly traditional manufacturing and agriculture, face slower adoption due to infrastructure gaps and cost constraints. Experts argue that addressing these hurdles requires coordinated efforts between government, academia, and industry. Dr. Ramesh Kumar, a professor of AI at the Indian Institute of Technology Delhi, notes, "AI adoption is not just a technology upgrade; it’s a fundamental shift in how organizations operate. Workforce readiness and ethical frameworks must evolve alongside."[3]
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Read More →Global Perspectives on AI ROI and Workforce Impact
India’s confidence contrasts with more cautious outlooks in Europe and parts of North America, where regulatory scrutiny and economic uncertainties temper AI investment enthusiasm. For example, a 2025 McKinsey report found that only 68% of European companies expect positive AI returns within three years, citing stricter data laws and slower digital adoption.[4]
Meanwhile, China continues to push aggressive AI investments backed by state support, similar to India’s model but with larger scale and focus on surveillance and manufacturing automation. India’s approach, more balanced between innovation and democratic governance, offers a unique case study in AI’s integration into emerging economies. Multinational corporations operating in India are also adapting their strategies. Companies like Infosys and Tata Consultancy Services are expanding AI consulting services, while global tech giants such as Microsoft and Google invest in AI research centers and talent development in Indian cities.
Future Outlook: AI as a Catalyst for Inclusive Growth
Looking ahead, AI’s role in India will extend beyond business efficiency to broader societal impact. The integration of AI in healthcare, education, and agriculture holds promise for addressing long-standing developmental challenges. For professionals, the imperative is clear: continuous learning and adaptability will define career trajectories. Educational institutions must align curricula with AI’s evolving demands, while policymakers need to foster inclusive digital ecosystems that bridge urban-rural divides. As Indian businesses prepare to reap AI’s rewards, the balance between technological innovation and human capital development will determine the sustainability of growth. The SAP report’s findings underscore a pivotal moment where AI investment is not just a financial bet but a strategic commitment to shaping India’s economic future.
