Snowflake Research Reveals 71% of Indian Firms See Positive ROI From Gen AI

Why It Matters

The strong ROI and accelerated budget commitments demonstrate that generative AI is becoming a core driver of productivity and competitive advantage for Indian enterprises, reshaping the country’s tech landscape and attracting global AI vendors.

Key Takeaways

• 71% Indian firms report positive ROI from generative AI
• Adoption rates exceed global averages across IT, analytics, security
• 28% tech budgets earmarked for generative AI next year
• 94% see operational efficiency gains, outpacing global 87%
• Agentic AI interest at 66% versus 56% globally

Pulse Analysis

India has vaulted into the top three global markets for generative AI, trailing only the United States and Germany, according to Omdia’s latest survey of 2,050 senior technology leaders. The study shows that 71 % of Indian respondents have already recorded measurable returns on AI spend, a full ten points above the global average. This rapid uptake reflects a broader digital transformation agenda in which Indian enterprises view generative models as a catalyst for competitive advantage. Such momentum is reinforced by government incentives that lower the cost of AI compute and promote data sovereignty.

Adoption is not limited to a single silo; more than four‑in‑ten Indian firms deploy generative AI across multiple use cases, with penetration rates far surpassing peers in IT operations (76 % vs 61 %), data analytics (75 % vs 57 %), and cybersecurity (69 % vs 52 %). In software development, 77 % use AI to generate code and 76 % for code reviews, accelerating release cycles and reducing defect rates. The tangible outcomes are reflected in 94 % of respondents reporting higher operational efficiency and 86 % noting improved financial performance. These efficiencies translate into faster time‑to‑market for new products, a critical edge in sectors like fintech and e‑commerce.

Looking ahead, Indian enterprises plan to devote 28 % of their technology budgets to generative AI within the next twelve months, outpacing the 22 % global benchmark. Interest in agentic AI is also rising, with 66 % of firms either using or planning deployments, compared with 56 % worldwide. This aggressive spending trajectory signals robust demand for AI platforms, cloud services, and specialized talent, prompting both domestic startups and multinational vendors to double‑down on Indian market strategies. Analysts expect this fiscal commitment to drive a surge in AI‑driven services, potentially reshaping India's export of software solutions.