A new report commissioned by IBM reveals that Indian businesses are moving past the experimental stage with AI and are now looking to maximise the return on their investments. The "APAC AI Outlook 2025," conducted by Ecosystm, surveyed organisations across the Asia-Pacific region, including India.
The report highlights that Indian enterprises expect AI to deliver significant long-term benefits, including innovation (26%), revenue generation (21%), cost savings (12%), and increased employee productivity (12%). However, a key challenge for these organisations is developing cost-effective AI solutions that can integrate seamlessly with existing systems. Initial generative AI projects prioritised short-term wins, but now have a more nuanced understanding of AI’s potential. The focus is shifting from low-risk, non-core uses of Gen AI to deploying it in core business functions for a competitive edge and improved ROI.
Sandip Patel, Managing Director, IBM India & South Asia, said, "In 2025, AI is set to be the game-changer for Indian enterprises, revolutionising productivity and enabling unprecedented scalability. As we work towards the vision of a Viksit Bharat, the focus will be on leveraging AI responsibly to drive real business value—moving beyond low-risk experiments to strategic initiatives that provide a competitive edge and improved ROI."
Smaller, specialised open-source AI models will gain traction due to their efficiency and lower carbon footprint. Enterprises will increasingly adopt open-source AI models and leverage tools for better visibility, governance, and seamless integration.
AI agents will play a larger role in automating tasks and collaborating with human workers. Human-centered AI will be crucial for enhancing human experiences and capabilities, fostering creativity and innovation. Ullrich Loeffler, CEO of Ecosystm, emphasised the importance of human involvement in AI's evolution, stating, "Human beings are indispensable in the evolution of AI. People need to be involved at every stage of the technology – this includes maintaining oversight of critical applications. The purpose of AI should always be to make a positive impact on the world, fostering a culture of trust, collaboration, and co-creation."