Indian Organizations Plan to Invest $25.9 Million in AI: SAP Study
Overall, AI ROI projected to rise from 22 per cent to 39 per cent within two years
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Indian enterprises are rapidly moving beyond AI experimentation to value-driven implementation, positioning themselves as global leaders in enterprise-wide adoption. India now ranks second worldwide in strategic approaches to AI investment. Reflecting this momentum, Indian organizations plan to invest US$25.9 million in AI, with spending expected to grow by 45 per cent over the next two years, according to SAP Value of AI Report 2026.
“AI is the backbone of the autonomous enterprise. In SAP, AI is grounded in deep industry context and rich business semantics, meaning AI that truly understands the processes, and data of your specific industry. As this embedded intelligence becomes core to operations, organizations become more adaptive, resilient, and future-ready. This marks a fundamental shift toward enterprises that can act with greater agility, innovate continuously, and scale with confidence in an increasingly dynamic world,” said Manos Raptopoulos, global president, customer success – Europe, APAC, Middle East & Africa.
Indian businesses balance AI optimism with caution. Almost 8 in 10 organisations are not convinced their upskilling can keep up with AI advancements, AI governance remains in focus as businesses say they’re not fully ready when it comes to skills and processes. As much as 76 per cent of organisations face challenges with incomplete data, while 67 per cent enterprise sstrugglewith low-quality data.
Manish Prasad, president and MD, SAP Indian Subcontinent, further added,“India stands at the forefront of one of the most significant technology shifts of our time—and our Value of AI survey shows that organizations are not waiting on the sidelines. Customers are moving decisively beyond experimentation, embedding AI into the core of their business and making it a strategic priority. This momentum, combined with India’s strong digital foundation, deep talent pool, and vibrant innovation ecosystem, uniquely positions the country not just to adopt AI at scale, but lead the next wave of enterprise transformation and define how AI delivers real business value globally.”
Indian enterprises are rapidly moving beyond AI experimentation to value-driven implementation, positioning themselves as global leaders in enterprise-wide adoption. India now ranks second worldwide in strategic approaches to AI investment. Reflecting this momentum, Indian organizations plan to invest US$25.9 million in AI, with spending expected to grow by 45 per cent over the next two years, according to SAP Value of AI Report 2026.
“AI is the backbone of the autonomous enterprise. In SAP, AI is grounded in deep industry context and rich business semantics, meaning AI that truly understands the processes, and data of your specific industry. As this embedded intelligence becomes core to operations, organizations become more adaptive, resilient, and future-ready. This marks a fundamental shift toward enterprises that can act with greater agility, innovate continuously, and scale with confidence in an increasingly dynamic world,” said Manos Raptopoulos, global president, customer success – Europe, APAC, Middle East & Africa.
Indian businesses balance AI optimism with caution. Almost 8 in 10 organisations are not convinced their upskilling can keep up with AI advancements, AI governance remains in focus as businesses say they’re not fully ready when it comes to skills and processes. As much as 76 per cent of organisations face challenges with incomplete data, while 67 per cent enterprise sstrugglewith low-quality data.
