India Takes the Lead as Gen AI Adoption Sets the Stage for Agentic AI

A new report from the Capgemini Research Institute, AI in Action: How Gen AI and Agentic AI Redefine Business Operations, reveals that organizations globally are now achieving strong returns on AI investments—averaging a 1.7x ROI. The momentum generated by generative AI (Gen AI) is paving the way for widespread adoption of agentic AI, with Indian enterprises leading on many fronts.

India surges ahead in Gen AI investment and maturity

According to the research, 79% of Indian executives reported an increase in Gen AI investments compared to 62% globally. Notably, 49% of these investments in India stem from both budget reallocations and new funding—indicative of strategic prioritisation.

India’s Gen AI maturity is rising rapidly:

• 37% of Indian organizations are currently building strategies for Gen AI,

• 29% have enabled capabilities in select functions, and

• 20% are exploring its potential.

Meanwhile, 39% of Indian executives say their leadership strongly advocates for Gen AI—suggesting a cultural shift toward AI-enabled enterprises.

Agentic AI deployments rise with real business outcomes

Globally, 30% of early adopters of Gen AI have already integrated AI agents into business operations. In India, 23% are already using AI agents, with 25% planning to adopt them within 2–3 years.

Agentic AI is reshaping core areas like procurement, customer service, supply chain, and finance, delivering cost efficiencies and faster decisions. Businesses implementing both Gen AI and agentic AI have seen faster time-to-market, better customer experiences, and improved workforce productivity.

The number of AI agent projects is expected to grow by 48% by the end of 2025. Key sectors adopting AI agents include high tech, manufacturing, consumer goods, energy, and healthcare.

Workforce readiness and proprietary AI preference shape outcomes

India is preparing its workforce for this transformation. By 2028:

• 58% of the workforce will engage directly with AI agents

• 68% will be trained in AI/Gen AI tools

• 68% will have access to enterprise-approved AI systems

In terms of implementation strategy, 36% of Indian enterprises are opting for proprietary models from hyperscalers like Microsoft Copilot and Google Gemini, while 33% prefer niche players such as OpenAI and Anthropic.

Top drivers for choosing proprietary models in India include:

• Performance (77%)

• Security and compliance (74%)

• Seamless integration (69%)

• Dedicated support and maintenance (61%)

Strong leadership, trust, and governance are critical to scale

Despite this momentum, challenges remain. Capgemini notes that only one in three global leaders is a strong Gen AI advocate. Enterprises with robust governance, leadership, and data foundations achieve ROI 45% faster.

Oliver Pfeil, CEO of Business Services at Capgemini, notes, “Gen AI and agentic AI can truly transform business services... organizations that adopt an integrated approach with data and AI at their core will be set to achieve a truly connected, frictionless enterprise.”

As India positions itself at the forefront of enterprise AI transformation, its proactive investments and workforce readiness suggest that agentic AI won’t just be a trend—it will be a competitive differentiator.