Indian enterprises are shifting from early-stage AI experimentation to incorporating artificial intelligence into their long-term business strategies, according to IBM’s latest report, APAC AI Outlook 2025. This trend is not only boosting AI-driven innovation, but also helping companies streamline operations, enhance revenue generation, and improve employee productivity.
The report highlights that a significant portion of Indian businesses anticipates AI will drive major benefits within the next few years. Specifically, 26% of companies expect AI to revolutionize innovation, 21% foresee AI boosting revenue, while 12% anticipate cost-saving and productivity benefits. Sandip Patel, Managing Director of IBM India & South Asia, emphasized that by 2025, AI will play a pivotal role in scaling operations and improving productivity in Indian businesses, urging companies to adopt AI responsibly for tangible business results.
Indian organizations are focusing their AI investments in areas such as customer experience enhancement (27%), planning and strategy (16%), and IT optimization (16%). However, challenges such as data accessibility (46%), lack of AI expertise (42%), and issues with integration and scaling (38%) remain significant hurdles to overcome.
The IBM study reveals a notable shift from short-term, low-risk AI projects to more strategic, core business functions, with companies focusing on AI’s long-term impact. Across the Asia-Pacific region, nearly 60% of organizations expect to see returns on their AI investments within 2 to 5 years, while only 11% anticipate short-term gains within the next 2 years.
Key trends shaping the future of AI in the region include the rise of purpose-built AI models, a greater adoption of open-source AI technologies, and the use of AI-powered automation to drive business efficiency. The report also predicts that AI will play an essential role in enhancing human capabilities, promoting creativity, and fostering stronger customer relationships, with businesses increasingly adopting “Human-Centric AI.”
With a focus on creating cost-effective, flexible AI solutions, the report sets a roadmap for businesses looking to maximize AI’s potential while addressing challenges like talent shortages and data integration. AI’s transformative role is expected to continue growing, with significant long-term impacts across industries.
