AI Investment in India: A Growing Trend in 2025

AI investment in India is predicted to rise substantially, with generative AI projected to make up 43% of total spending by 2025, as outlined in the recent edition of Lenovo’s CIO Playbook.

Understanding the AI Landscape in India

The report, titled “It’s Time for AI-nomics,” is rooted in a global survey by IDC, which gathered insights from over 2,900 respondents. This includes more than 900 decision-makers in IT and business from 12 Asia Pacific (APAC) markets.

Growth and Adoption Rates

Although AI spending in India is anticipated to increase by 2.7 times, the adoption phase is still emerging. Currently, 49% of Indian organisations are either assessing or planning AI initiatives within the next year. This figure aligns with the global average but lags behind the APAC regional average of 56%.

Challenges in AI Adoption

The study identifies return on investment (ROI) as the primary challenge facing AI adoption. Indian organisations seek a 3.6x return on their AI investments, which drives a more cautious and strategic deployment approach. Common obstacles include data quality concerns, insufficient internal expertise, and high infrastructure expenses.

Priorities for CIOs in the APAC Region

For CIOs in the APAC region, governance, risk, and compliance (GRC) has surfaced as a top priority. Notably, only 19% of Indian CIOs report having fully implemented AI governance frameworks. Ethical issues and bias remain the most significant risks associated with AI, as highlighted in the report.

Insights from Lenovo Executives

Sumir Bhatia, President of Lenovo’s Infrastructure Solutions Group for Asia Pacific, mentioned that GRC has risen 12 places to become the highest priority for 2025, reflecting the emphasis on secure and responsible AI. Employee productivity has similarly advanced from seventh to second place.

AI Applications and Use Cases in India

In India, the foremost application of AI is observed in sales, with marketing and software development closely following. In the wider region, IT operations, cybersecurity, and software development are the predominant applications for AI.

Infrastructure Trends in AI

There is a notable shift towards hybrid and on-premise infrastructure solutions, with 63% of Indian organisations adopting these models for improved control, security, and reduced latency. This trend reflects a global preference of 65%.

Key Benefits of Hybrid Architectures

Amit Luthra, Managing Director at Lenovo ISG India, stated that hybrid architectures provide a balance of scalability and control. This focus suggests a dedicated effort to drive innovation while maintaining security and compliance for the unique needs of AI.

The Rise of AI-Powered PCs and Services

AI-driven PCs are beginning to yield productivity benefits in the region, with 43% of APAC organisations noting improvements. Over half of surveyed organisations in India are planning to adopt AI-enabled PCs.

Professional AI Services Utilisation

The trend towards professional AI services is also on the upswing, with 29% of Indian CIOs currently utilising such services, and an additional 54% intending to explore them. These services aim to bridge skills gaps and facilitate AI solution deployment.

Long-term Outlook on AI Adoption

Fan Ho, Executive Director and General Manager of Solutions and Services Group at Lenovo Asia Pacific, highlighted that adopting AI extends beyond immediate gains. Professional AI services support organisations in implementing AI through a result-oriented approach.

The complete report is accessible on Lenovo’s website, positioning the company’s broader commitment to fostering responsible and scalable AI adoption across the Asia Pacific region.