AI Outlook for 2025 | Indian enterprises starting to prioritise return on investment, says IBM report

An IBM-commissioned study has found a significant change in how Indian companies use artificial intelligence (AI). According to the report, titled "APAC AI Outlook 2025", companies are moving from just trying out AI to looking at how much these projects pay off.

The report points out that businesses are starting to focus on the long-term good AI can do. They're hoping for better new ideas (26%), more money coming in (21%), less money going out (12%), and workers getting more done (12%).

The report states that companies are changing how they think about AI projects — at first, they wanted quick gains; now, they're starting to see how AI can help their business. It adds that companies are beginning to use AI in their main business verticals and not just in safe side projects.

The study found some interesting numbers — in the Asia-Pacific region, about 60% of the companies surveyed think they'll see good results from their AI projects in two to five years, and 11% believe they'll reap the benefits in the next two years.

In 2025, Indian organisations aim to focus their AI spending on making customers satisfaction (27%), planning and strategy (16%), and improving their IT workflows (16%). But they're up against some hurdles, like difficulty in getting data (46%), not enough AI know-how (42%), and problems with fitting AI in and growing it (38%).



Sandip Patel, Managing Director of IBM India & South Asia, said AI will change the game for Indian businesses.

“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. Additionally, the rise of small, high-performing AI models will redefine efficiency, delivering task-specific results that rival larger models at a fraction of the cost,” Patel said.

"APAC AI Outlook 2025" highlights five key trends that are changing how AI works in the region:

1. AI-led Revenue Generation: Companies will adopt a "Strategic AI" approach. This means they'll pick projects based on how doable they are and how much they'll help the business. The goal is to balance quick wins with long-term plans.


2. Smaller, Specialized Open-Source Models Emerge: We'll see more demand for custom-built models that work well with local languages and specific tasks. These models need less data to train and don't use as much energy as bigger models.


3. New Tools to See and Control AI: Companies in Asia-Pacific will use open-source AI models to boost new ideas and improve their work. They'll use strong management tools to track everything and ensure everything works together.


4. AI Agents and the Future of Work: Companies plan to create workflows that AI agents drive. These agents will do tasks on their own and work with humans. This aims to boost how well companies run and make choices.


5. Human-Centered Innovation: The trend now is to use AI to make things better for people. The focus is on design that shows understanding. This helps build stronger ties with customers and makes them more loyal to brands.

Ullrich Loeffler, CEO of Ecosystm, spoke about why humans need to be part of AI growth. He said, "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,” Loeffler said, adding: "The purpose of AI should always be to make a positive impact on the world, fostering a culture of trust, collaboration, and co-creation. Progress should be premised on the idea that AI enhances rather than replaces humans, with both working and growing together.”

The report acts as a roadmap for companies aiming to speed up their AI projects while dealing with the related hurdles and dangers.