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Indian enterprises are rapidly moving beyond AI experimentation to value-driven implementation, positioning the country as a global leader in enterprise AI adoption, according to SAP’s Value of AI Report 2026. India ranks second worldwide in strategic AI investment, with organizations planning to invest US$25.9 million in AI and increase spending by 45% over the next two years. AI ROI is projected to rise from 22% to 39%, while 71% of businesses have aligned AI strategies and 74% are satisfied with current AI returns. Commenting on the findings, Manos Raptopoulos, Global President, Customer Success – Europe, APAC, Middle East & Africa, SAP SE, said AI is becoming the backbone of the Autonomous Enterprise, enabling organizations to become more agile, resilient, and future-ready.
The report highlights India’s growing AI maturity, with 63% of organizations now data-ready for AI, the highest year-on-year growth globally. AI currently supports 33% of business tasks and is expected to support 51% within two years, while cross-functional AI adoption is set to more than double to 40%. Agentic AI is emerging as a key driver of transformation, with 67% of Indian businesses already piloting use cases and 85% believing it has the potential to significantly transform business operations. However, challenges remain around workforce readiness, skills development, and data quality.
Manish Prasad, President and Managing Director, SAP Indian Subcontinent, said India’s strong digital foundation, talent pool, and innovation ecosystem position it to lead the next wave of enterprise AI transformation. Reflecting this momentum, leading organizations are already deploying SAP AI solutions at scale. PI Industries is leveraging SAP Business Transformation Management, SAP Business AI Platform, and Joule solutions to enhance productivity and growth; UPL Ltd. is using SAP Business AI across finance, HR, supply chain, and IT to improve decision-making and operational excellence; while Parle Products Pvt. Ltd. is advancing its cloud-first, data-driven transformation through SAP technologies, AI, automation, and analytics.