97% Indian Firms to Keep AI Spend Despite ROI Delay, Beats Global Average

"India's AI story is one of resilience and rising ambition. What truly stands out is the depth of commitment: 97% of Indian organizations say they will continue investing in AI even if returns do not materialize in the next 12 months, among the highest levels globally," said Nipun Kalra, India Leader - BCG X, BCG

According to the third annual BCG AI Radar report, corporate AI investment is expected to account for approximately 1.7 per cent of total revenues this year, marking a significant increase from 2025 levels.

The report highlights a growing optimism among Indian leadership, with 88 per cent of leaders in the country expressing confidence in AI's ability to deliver positive business returns, compared to a global average of 82 per cent.

"AI decision-making in India remains more tech-led than business-led, with just 55% CEOs driving AI agendas compared to a 72% global average. Further, India is also under-investing on workforce skilling, trailing global benchmarks at 36% versus 44%," added Kalra.

On a global scale, the responsibility for AI implementation is shifting toward the highest levels of corporate leadership. Nearly three-quarters of CEOs now identify as the primary decision-makers for AI initiatives, a share that has doubled since last year.

"Despite economic uncertainty, this anticipated surge in spending reflects how much of a priority AI has become in the business world," said Christoph Schweizer, BCG's CEO and coauthor of the report. "AI is no longer confined to IT or innovation teams--it's reshaping strategy and operations from the top down with CEOs taking a leading role. Nearly three-quarters of CEOs say they are now the main decision makers on AI, and half believe their jobs depend on it."

Confidence in the technology is increasingly tied to the development of agentic AI. Approximately 90 per cent of global chief executives believe that AI agents will enable their companies to see measurable returns in 2026, leading CEOs to commit more than 30 per cent of their AI budgets to this specific area.

While half of the surveyed CEOs believe their job security depends on successfully implementing AI, four out of five remain more optimistic about the technology's return on investment potential than they were a year ago.

"CEOs have a defining role in shaping how AI delivers value," said Sylvain Duranton, co-author and Global Leader of BCG X, the tech build and design division of BCG. "The true competitive advantage lies with those CEOs who will reshape functions end-to-end and invent new products and services that drive growth. The fact that nine out of ten CEOs tell us that by 2028 the measure of success for a company will be heavily tilted towards those that are able to get AI right reflects the significant change we are seeing in the market."

- ANI