Indian businesses ahead of global counterparts in AI adoption: Report

A recent survey by SAP reveals that 96% of Indian midmarket organisations, those with 250 to 1,500 employees, are prioritising generative artificial intelligence (GenAI), compared to 91% globally. The survey, which included responses from over 12,000 businesses worldwide, with 800 of them in India, highlights the rising importance of AI in India’s midmarket sector.

In 2024, adopting Gen AI (66%) is one of the top priorities for Indian midmarket businesses, only slightly behind cybersecurity preparedness (67%) and ahead of initiatives to enhance environmental sustainability (65%). This marks a strong push towards leveraging AI for business growth and innovation.

Manish Prasad, President and Managing Director of SAP Indian Subcontinent, emphasised the critical role AI plays for midmarket companies, stating, “India’s midmarket businesses are the backbone of the nation’s economy. AI is a game-changer for these companies, offering agility, actionable insights, and helping them thrive in a digital economy.” 

The survey also found that more than half of Indian midmarket companies prioritise AI to enhance privacy and security (55%) and improve decision-making (52%), both higher than the global averages of 50% and 49%, respectively. AI is also being used to boost training and skills development (51%), customer experience (50%), and optimise supply chains and logistics (50%).

Rajeev Singh, Vice President and Head of Midmarket, SAP Indian Subcontinent, further added, “AI has the potential to empower organisations with intelligent insights, automation, and tools, allowing them to compete on a global scale.”

Indian businesses are notably ahead of their global counterparts in AI adoption. For example, 49% of Indian companies use AI for forecasting and budgeting, compared to 40% globally, and 48% use AI for developing marketing and sales content, compared to 41% globally. Other key AI applications in India include gathering market intelligence (47%), monitoring regulatory compliance (47%), and addressing cybersecurity threats (46%).

However, talent acquisition remains a major concern, with 39% of Indian businesses identifying the challenge of attracting and retaining AI-skilled professionals as the biggest risk. Other concerns include data transparency (36%) and acting on incorrect information (36%).