New Delhi, Jan. 14 -- AI's evolution marks a new era for Indian enterprise - one driven by strategy, speed, and impact
In the rapidly evolving technological landscape of 2025, artificial intelligence (AI) has moved beyond experimental applications to become a core driver of business transformation worldwide. For Indian managers, understanding the global AI trajectory and its implications for local business contexts is no longer optional.
The global AI landscape
The rise of agentic AI
The most significant development in 2025's AI ecosystem was the emergence of agentic AI, systems that can autonomously take action to achieve specific goals without constant human supervision. Research firm Gartner named agentic AI as the top tech trend for 2025, describing these as autonomous machine 'agents' that move beyond query-and-response generative chatbots to perform enterprise-related tasks without human guidance.
This shift from assistive AI, which merely responds to queries, to agentic AI, which proactively completes tasks, represents a fundamental evolution in how AI will impact business operations.
Value-driven AI implementation
After several years of experimentation, businesses are now prioritising AI projects based on demonstrable return on investment (RoI). According to a BCG survey of 330 IT buyers, generative AI budgets are projected to grow by 60% between 2025 and 2027, expanding from an average of 4.7% of total IT budgets to approximately 7.6% by 2027.
A 2024 IBM AI Outlook for India report indicated that many expect AI to deliver long-term business benefits in areas such as innovation (26%), revenue generation (21%), cost saving (12%), and increased employee productivity (12%).
The breadth of AI adoption continues to expand across Indian businesses. By the end of 2025, AI was expected to add US$450-500 billion to India's GDP, contributing around 10% to its US$5 trillion economy goal, according to a NASSCOM report published in October 2024.
Strategic imperatives for the C-suite
1. Adopt a portfolio approach to AI implementation
Rather than pursuing a single, comprehensive AI transformation, successful organisations are taking a portfolio approach that balances quick wins with longer-term, more ambitious projects.
According to PwC's 2025 AI Business Predictions, "An effective AI strategy, designed to deliver value at scale this year, takes a portfolio approach. One part of the portfolio develops a strong 'ground game' to deliver many small wins."
For Indian managers, this means identifying high-value, lower-risk applications that can deliver quick results while simultaneously exploring more innovative opportunities that might take longer to materialise but could provide greater competitive advantage.
2. Develop domain-specific AI applications
Rather than deploying generic AI tools, leading organisations are developing solutions tailored to their specific industry and business challenges.
Organisations are moving away from plug-and-play approaches and instead deploying AI "in more customised fashion" with "more vertical applications of training models," according to Sagar Samtani, Associate Professor at Indiana University's Kelley School of Business.
For Indian businesses, this means focusing on applications that address specific challenges in their industry or market context, rather than implementing generic AI solutions. Success will come from combining domain expertise with AI capabilities to solve problems unique to the Indian market. This also enables monetization of AI investments.
3. Invest in AI talent development
The competition for AI talent remains intense, making it essential for organisations to develop these capabilities internally. According to McKinsey's AI in the Workplace Report (January 2025), 46% of leaders identify skill gaps in their workforces as a significant barrier to AI adoption.
For Indian businesses, this presents both a challenge and an opportunity. While competing for top AI talent can be difficult, India's strong technical education system provides a solid foundation for developing these skills. Organisations should invest in upskilling existing employees and collaborate with educational institutions to develop specialised AI talent.
The world of tomorrow will be neither purely human nor purely algorithmic, but a blend of both - 'Hum-AI'.
From strategy to execution
As AI continues to evolve from a technological curiosity to a business imperative, Indian managers must balance pragmatism with ambition. The most successful organisations will be those that can effectively integrate AI into their operations while maintaining a focus on solving real business problems.
By understanding the global trends shaping AI development, identifying industry-specific applications with the greatest potential value, and building the organisational capabilities needed to develop and deploy these solutions effectively, Indian managers can position their organisations for success in an increasingly AI-driven business landscape.
The AI revolution offers unprecedented opportunities for Indian businesses to solve longstanding challenges and access global markets. By taking a strategic, value-focused approach to AI implementation, managers can ensure their organisations not only adapt to the AI-powered future but also help shape it.
No Techcircle journalist was involved in the creation/production of this content.
Published by HT Digital Content Services with permission from TechCircle.