India high on AI optimism, 93% firms expect positive returns in three years: report

Around 93% of Indian businesses expect positive returns on their artificial intelligence (AI) investments within three years, the highest confidence level among all countries surveyed, a report said on Monday.

The report from German multinational software company SAP, co-authored with Oxford Economics, found that Indian firms have already reported an average AI return on investment of 15% in 2025, projected to reach to 31% within two years.

Indian businesses are investing $31 million in AI this year — outpacing the $26.7 million global average — with focused spending on software, infrastructure, talent, and consulting.


Organisational investments in AI are projected to rise by an average of 33% over the next two years, which is expected to drive ROI of 15% this year (an average of $5.7 million), which is expected to double in two years' time to 31% ($15.3 million).

"AI is transforming how businesses operate, not just by automating tasks, but by enabling smarter, faster decisions across mission-critical processes," said Philipp Herzig, Chief Technology Officer, SAP SE.

As much as 56% of Indian respondents were satisfied with current ROI, and 58% expected AI initiatives to deliver positive ROI faster than other technology investments — the highest globally.

With over six lakh professionals, India accounts for 16% of the global AI talent pool, making it a true AI powerhouse, said Sindhu Gangadharan, MD of SAP Labs India and Head, SAP Customer Innovation Services, SAP.

"This depth of digital talent is enabling enterprises to shift from pilots to performance, embedding AI into decisions, operations, and customer experiences," she added.

The report is based on a survey of 1,600 senior leaders across eight countries, including 200 respondents from India.