79% of Indian companies plan to increase AI spending in 2025: Freshworks’ AI Workplace Report – CRN

Companies in India believe AI is essential for business success in 2025, showcasing the highest sentiment globally, according to the Freshworks’ AI Workplace Report. With 79% of organisations planning to increase AI budgets and an anticipated 41% average rise in spending from 2024—the largest globally—India is setting new benchmarks in AI integration and innovation, driven by confidence in its ROI.

The Freshworks’ AI Workplace Report surveyed 4,000 professionals, including C-suite executives, globally across HR, IT, customer services and support, finance and accounting, sales, marketing, and legal departments.

Some key observations on how India is leading the race to use AI:

India leads global AI adoption and trust

The report finds India at the forefront of AI adoption, with an exceptional level of expertise and confidence in AI-powered software that sets it apart globally. Globally, just 26% of workers say they use AI every day. In India, that figure is nearly double, with 45% saying they use it daily.

74% of Indian professionals consider themselves knowledgeable or expert in AI, well above the global average of 55%. This is reflected in their comfort and trust, with 91% of employees in India feeling at ease using AI tools (67% globally) and 90% trusting AI to enhance their work processes (66% globally).

A key driver of this progress is that India has the highest percentage of employees stating mandatory AI-use policies within their workplaces, with 65% saying they are required to use AI within all or part of their workload, the highest percentage globally. This is particularly evident in IT and Marketing, where employees were quick to point out that AI is both powerful, quick to show results, and even “necessary” to some employees.

In fact, 88% of Indian workers use AI-powered software weekly, a rate that outpaces all other regions, including the US, UK, and Europe. As a result, 85% leaders of organisations in India report improved ROI from their AI investments, with IT and Marketing departments seeing the most notable returns.

Investment in workforce upskilling

In India, businesses are prioritising workforce readiness, with 90% saying AI solutions are necessary to drive business success by 2025. A significant 88% of these businesses are focusing on AI training to future-proof their workforce, the highest among global counterparts like the UK (66%), Australia (62%), and Europe (67%).

These initiatives are heavily focused on ongoing security training (50%), along with upfront onboarding for AI tools (40%), reflecting the nation’s advanced AI adoption rate. Marketing (84%) and IT (81%) teams in India lead the race when it comes to implementation of training the workforce on AI.

AI as a catalyst for career growth

Over two-thirds (67%) of Indian workers report career advancements tied to AI adoption, significantly higher than the US (34%) and UK (35%), where AI’s impact on career growth is comparatively nascent.

Commenting on the report, Shelton Rego, Vice President of Freshworks India, said, “This report provides a fascinating overview of AI adoption globally, with India standing out with exceptional levels of usage and expertise. The combination of mandatory AI integration and workforce upskilling initiatives is driving India’s productivity and innovation to new heights.”

AI chatbots revolutionising customer service and employee service

Among all workplace functions, India’s customer service teams are witnessing a transformative shift driven by AI chatbots. Majority (88%) of IT service and customer service professionals in India consider AI chatbots essential to ease their workloads. These tools streamline operations, enhance service quality, and allow employees to focus on strategic initiatives. Furthermore, 84% of customer service teams utilise AI for critical tasks, such as managing online self-service portals and monitoring customer interactions for quality assurance. The widespread adoption of AI tools has resulted in 48% of employees noting improved client experiences.

Rego added, “AI agents will increasingly be an integral part of how businesses approach delivering experiences to their customers while making lives easier for their employees. We have been empowering this change for businesses and the data now shows the large scale impact AI has for these high volume, high performance business functions.”

In conclusion, India’s confidence in AI, coupled with its widespread adoption and high levels of trust, places the country firmly ahead of global counterparts in AI-driven workplace success. This growing integration not only promises enhanced productivity but solidifies India’s position as a leader in the next wave of technological evolution.