AIInvestment – Indian Firms Set for Major Gains as Agentic AI Adoption Accelerates
AIInvestment – Indian companies are expected to witness a significant increase in returns from agentic artificial intelligence over the next two years, according to a new industry report released on Friday. The study indicates that revenue generated through agentic AI initiatives could climb nearly five times, reaching $14.4 million, while average returns on AI investments may rise from the current 22 percent to approximately 40 percent during the same period.
Businesses Shift from Testing to Practical Implementation
The report, published by enterprise software provider SAP, highlights a clear transition among Indian organizations from exploring AI capabilities to deploying solutions that generate measurable business outcomes. A large majority of surveyed companies believe agentic AI is already influencing the way businesses operate and make decisions.
Findings show that 85 percent of organizations expect agentic AI to play a transformative role across operational functions, reflecting growing confidence in the technology’s ability to improve efficiency and productivity.
India Emerges as a Global Leader in AI Spending
India has secured the second position globally in terms of strategic AI investment planning. Businesses across sectors are preparing to increase spending substantially, with projected investments reaching $25.9 million. Overall AI-related expenditure is expected to grow by 45 percent over the next two years as organizations continue expanding digital transformation initiatives.
The report also notes that a growing number of companies are aligning artificial intelligence programs with broader corporate objectives. Around 71 percent of organizations now have a clearly defined AI strategy connected to business goals, demonstrating a more structured approach to technology adoption.
AI Expected to Support More Core Business Activities
Artificial intelligence currently contributes to roughly one-third of business operations across surveyed organizations. However, this share is projected to rise considerably, with AI expected to support more than half of all business activities within the next two years.
At the same time, satisfaction levels among businesses remain strong. Nearly three-quarters of respondents reported positive returns from their existing AI investments, while many companies are increasingly evaluating success based on value creation rather than simple cost reduction.
Cross-Functional Adoption Continues to Expand
Organizations are also broadening AI implementation across departments. End-to-end adoption involving multiple business functions is forecast to more than double and reach 40 percent within two years.
Another notable trend is the growing focus on leadership and governance. According to the report, 55 percent of Indian organizations have appointed dedicated AI leaders, giving the country the highest proportion of AI-focused leadership roles globally.
Data Readiness and Workforce Transformation Gain Importance
The study reveals substantial progress in data preparedness, a critical factor for successful AI deployment. Around 63 percent of organizations now consider themselves ready to support AI initiatives through reliable data systems, up significantly from 42 percent a year earlier. This represents the strongest year-on-year improvement recorded worldwide.
Additionally, 67 percent of Indian businesses are currently testing or piloting agentic AI applications, signaling strong momentum toward broader implementation.
The report also emphasizes the importance of workforce transformation. About 80 percent of respondents agreed that maximizing the benefits of AI will require changes that go beyond employee training and skill development, including adjustments to organizational structures and work processes.
Strong Digital Ecosystem Supports Future Growth
Commenting on the findings, Manish Prasad, President and Managing Director of SAP Indian Subcontinent, said organizations are increasingly integrating AI into the heart of their operations and treating it as a long-term strategic priority rather than an experimental technology.
He added that India’s robust digital infrastructure, highly skilled workforce, and active innovation ecosystem place the country in a strong position to lead the next phase of enterprise transformation. These advantages could help Indian businesses shape how AI delivers meaningful commercial value on a global scale.