As many as 96% of Indian organisations, housing between 250 and 1,500 employees, are prioritising generative artificial intelligence (GenAI), according to a report by SAP Now. This is notably higher than the global figure of 91%.
The survey, which included 12,003 businesses globally, with 800 participants from India, highlights the forward-thinking mindset of India’s midmarket businesses.
For these businesses, the adoption of GenAI ranks as their second-highest priority, just behind addressing cybersecurity threats, and ahead of initiatives like improving environmental sustainability in business operations.
Indian companies are also focusing on AI to transform several key areas. Over half of the surveyed Indian businesses are using AI to enhance privacy and security (55%) and improve decision-making (52%). Additionally, AI is seen as crucial for improving training and skills development (51%), enhancing customer experience (50%), and optimising supply chains and logistics (50%).
Manish Prasad, president and managing director of SAP Indian Subcontinent, said: “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.”
Indian businesses are also outpacing their global counterparts in adopting AI. For example, 49% of Indian respondents are using AI significantly for forecasting and budgeting, compared to 40% globally, according to the report.
Similarly, 48% of Indian companies are leveraging AI to develop marketing and sales content, compared to 41% globally. Additional uses in India include gathering market intelligence, monitoring regulatory compliance, and mitigating cybersecurity threats.
Rajeev Singh, Vice President and Head of Midmarket, SAP Indian Subcontinent, said: “Today, more than 27,000 customers globally are already using SAP Business AI, recognizing the impact on enhancing operations and enabling real-time decision-making. For example, Indian customers like PGP Glass, Suzlon Energy and many more have already embraced the transformative potential of AI in their businesses.”
Rajeev Singh, vice president and head of midmarket at SAP Indian Subcontinent, said: “Today, more than 27,000 customers globally are already using SAP Business AI, recognising its impact on enhancing operations and enabling real-time decision-making. Indian customers like PGP Glass, Suzlon Energy, and many more have already embraced the transformative potential of AI in their businesses.”
Talent and data: The AI challenges
One of the major challenges Indian businesses face in leveraging AI is the talent gap. Approximately 39% of respondents identified finding, attracting, and retaining skilled AI professionals as the primary obstacle.
Data-related challenges, such as the lack of transparency behind AI results, the risk of acting on incorrect information, and inadequate data quality for effective AI model-building, are also significant concerns.
