Indian companies increase investments in GEN AI to increase business value: Capgemini Study

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According to a new study from the Capgemini Research Institute, Indian companies are accelerating their investment in generation and agent AI, increasing their confidence in the technology's ability to improve operational efficiency and provide measurable returns.

Report, title How AI works: How Gen AI and Agent AI redefine business operationsshowing that 79% of Indian executives surveyed have increased their investment in generated AI compared to last year. This is above the global average of 62%. A quarter of these executives said the increase was driven entirely by additional budgets, with another 27% reallocating existing budgets, and another 27% being a combination of both.

Organizations are moving from experiments to operational integration. One in four companies in India already uses AI agents, with an additional 25% planning to implement an agent AI system within the next two to three years. Using autonomous software agents to manage complex tasks, these systems provide early profits in customer service, supply chain, finance, and procurement functions.

Investment and adoption in AI India

metric India's response (%)
Increase in Gen AI investment (Yoy) 79
Already using an AI agent twenty three
Plans to employ AI agents in 2-3 years twenty five
Adopting Gen AI in several features or locations 29
Gen AI Strategy under development 37
Investigating the possibilities of Gen AI 20

According to Capgemini, Indian organizations are also supporting their own AI model. Around 36% of Indian executives said they preferred to use tools from major technology companies such as Microsoft and Google, while 33% chose models developed by smaller providers such as Openai and humanity. Performance, security, system integration, and dedicated support were the biggest reasons for this preference.

This study shows that return on investment from AI projects is beginning to meet expectations. On average, the organisations surveyed report ROI of 1.7 times more than AI investments. Capgemini also found that organizations with strong AI leadership and structured implementation strategies can achieve ROI up to 45% faster. However, in India, only 39% of executives who say that leadership is a powerful advocate for generation AI, currently say that their leadership adopts a wait and viewing approach.

Workforce transformation is underway

The growing presence of AI agents is also changing the workforce structure. According to Indian respondents:

  • 25% of the workforce currently interacts with the role of AI agents.
  • By 2026, this number is expected to reach 43%.
  • By 2028, it is projected to rise to 58%.

Access to AI tools and training is also increasing. Currently, 45% of employees have access to organization-approved GEN AI tools, and 43% are trained. By 2028, these figures are expected to rise to 68% in both tool access and training.

Capgemini's research suggests that ongoing investment in AI infrastructure and workforce preparation is key to effectively expanding agent AI. The study recommends building strong data foundations, supporting workforce reskills and ensuring leadership adjustments to maintain momentum.

The findings are based on a survey of 1,607 global executives, including a significant sample of India, across sectors such as finance, supply chain and customer operations. An interview was also conducted with senior leaders in charge of AI deployment at large companies.

Also Read: India's CEOs drive AI investment despite ROI challenges: IBM Research



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