The Avanade AI report released on 3 November 2026 finds that 75% of Indian business leaders say artificial intelligence has not yet delivered returns that justify the money and effort spent, against 65% across all markets surveyed. Avanade’s “Build Beyond Limits: AI Reality Report” also shows Indian firms give generative AI more autonomy than peers in any other market.

The findings echo a pattern seen in other recent surveys, including Dun & Bradstreet’s finding that only 3% of Indian firms have AI-ready data: adoption is racing ahead of the foundations and the financial proof.

What the Avanade AI report found in India

The survey of 3,600 business decision-makers across markets, including India, points to unusually high confidence among Indian leaders, Avanade said.

• 82% of Indian leaders have high or complete confidence in their teams’ AI use, but only 23% say they have fundamentally reshaped how their teams work around it.
• 83% believe their company is ahead of competitors in using AI, against an average of 68%.
• 27% say AI is used across all or nearly all relevant parts of the business, against 18% globally.
• Only 19% are still investing heavily in pilots and proofs of concept, the lowest of any market surveyed.

Indian firms let generative AI act on its own

28% of Indian respondents say generative AI in their teams completes defined processes end to end without routine human approval. That is the highest share of any market and well above the 19% average. Only 24% require explicit human approval before generative AI acts, against 29% globally.

That level of delegation raises governance questions that regulators are already flagging. CERT-In recently warned that AI agents were reading Indian firms’ data undetected, and DSCI has issued industry guidance on who is liable when an AI agent gets it wrong.

Why AI returns remain hard to prove

India ranks first among surveyed markets for significant, measurable gains in operational efficiency (44% against 36%) and employee productivity (42% against 36%). Yet 74% of Indian respondents say their organisation has not formally calculated AI ROI and had it reviewed by finance or leadership, and 46% say AI projects are reported as successful despite limited measurable impact.

Weak foundations are a key brake. 47% have faced integration or scaling problems, the highest of any market, while 48% name integrating AI with core systems and data as a top challenge. Leadership is also in focus: 93% agree leaders could do more to understand AI’s capabilities and limits.

“Indian enterprises are leading the world on AI ambition,” said Achal Kataria, Managing Director and CEO, Avanade India. “The next stage is proving that value in financial terms. Companies that treat AI with the same financial discipline as any other major investment will be best placed to turn early momentum into lasting advantage.”

Ben Beath, Chief AI Officer at Avanade, said too many organisations measure AI progress “by activity rather than impact”.

What it means for CIOs

The report adds to pressure on technology leaders to tie AI deployments to measurable outcomes. India’s IT majors are already building tools to police AI agents as enterprises scale agentic AI. Full findings are available from Avanade India.

Key takeaways

• 75% of Indian leaders say AI has not yet paid back its cost, and 74% have not formally measured ROI.
• 28% let generative AI complete processes without routine human approval, the highest of any market.
• Integration with core systems and data is the biggest barrier to scaling AI in India.

FAQ

What is the Avanade AI Reality Report?

It is Avanade’s 2026 survey of 3,600 business decision-makers across several markets, including India, on AI maturity, autonomy and returns, released on 3 November 2026.

How many Indian firms see returns from AI?

According to the report, 75% of Indian leaders say AI has yet to deliver returns that justify the investment, compared with 65% across all surveyed markets.

Featured image: Achal Kataria, Managing Director and CEO, Avanade India. Photo: Avanade / People Matters.

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