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GenAI to account for 43% of AI spend in India by 2025, Lenovo study finds

GenAI to account for 43% of AI spend in India by 2025, Lenovo study finds

The study, titled "It’s Time for AI-nomics", is based on a global survey conducted by IDC, covering over 2,900 respondents, including more than 900 IT and business decision-makers from 12 Asia Pacific (APAC) markets.

Lakshay Kumar
Lakshay Kumar
  • Updated Apr 26, 2025 10:38 AM IST
GenAI to account for 43% of AI spend in India by 2025, Lenovo study finds(L to R) Flynn Maloy - Chief Marketing Officer, Lenovo ISG, Sumir Bhatia - President, Asia Pacific, Lenovo ISG, Fan Ho - Executive Director and General Manager, Solutions and Services Group, Lenovo Asia Pacific, Amit Luthra, MD - India, Lenovo ISG

Indian organisations are expected to significantly increase their investment in artificial intelligence (AI), with generative AI (GenAI) projected to account for 43% of total AI spending in 2025, according to the latest edition of Lenovo’s CIO Playbook.

The study, titled "It’s Time for AI-nomics", is based on a global survey conducted by IDC, covering over 2,900 respondents, including more than 900 IT and business decision-makers from 12 Asia Pacific (APAC) markets.

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While AI spending in India is forecast to grow by 2.7 times, adoption remains in its early stages, with 49% of Indian organisations either evaluating or planning AI initiatives within the next 12 months. This is in line with the global average but lags behind the Asia Pacific regional average of 56%.

The study highlights return on investment (ROI) as the key challenge to adoption. Indian organisations expect a 3.6x return on their AI investments, prompting a more measured and strategic approach to deployment. Common barriers include data quality issues, lack of internal expertise, and high infrastructure costs.

Governance, risk and compliance (GRC) has emerged as the top priority for CIOs in the APAC region, although only 19% of CIOs in India report fully implemented AI governance frameworks. Ethical concerns and bias remain the leading risks associated with AI, according to the report.

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Sumir Bhatia, President of Lenovo’s Infrastructure Solutions Group for Asia Pacific, said, "For 2025, governance, risk, and compliance have jumped 12 spots to become the top priority, highlighting the focus on secure and responsible AI. Employee productivity has also climbed from seventh to second place."

In India, sales has emerged as the leading use case for AI, while marketing and software development follow closely. Across the broader region, IT operations, cybersecurity, and software development are the most common AI applications.

Infrastructure preferences also reflect a shift towards hybrid and on-premise solutions, with 63% of Indian organisations adopting these models due to their greater control, security, and lower latency. Globally, this preference stands at 65%.

"Hybrid architectures offer the best of both worlds—scalability and control," said Amit Luthra, Managing Director, Lenovo ISG India. "This alignment demonstrates a clear focus on driving innovation while staying secure and compliant for the unique demands of AI."

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AI-powered PCs are beginning to show productivity gains in the region, with 43% of APAC organisations reporting improvements. In India, over half of surveyed organisations are currently planning to adopt AI PCs.

The report also notes a rising reliance on professional AI services, with 29% of Indian CIOs already using such services and an additional 54% planning to explore them. These services aim to address skills gaps and support the deployment of AI solutions.

Fan Ho, Executive Director and General Manager, Solutions and Services Group, Lenovo Asia Pacific, said: "AI adoption is not just about the short-term gains. Professional AI services help organisations adopt AI through an outcome-led approach."

The full report is available on Lenovo’s website and forms part of the company’s broader push to promote responsible and scalable AI adoption across the Asia Pacific region.

Published on: Apr 26, 2025 10:38 AM IST
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