NEW DELHI: A vast majority of executives believe that artificial intelligence (AI) can provide a competitive edge, but only 47% of them are currently seeing a significant return on investment (RoI) from their investments made into the technology, KPMG in India said in a report released Thursday.

By contrast, 68% of the respondents expect a moderate to very high RoI from AI investments of 10% or more. However, despite the RoI concern, 63% of the respondents stated that they will increase their AI investments by more than 10% in 2026, the consultancy and advisory services firm found.

‘India’s tech ecosystem is uniquely positioned to leapfrog into the intelligent enterprise era, with 81% of technology firms planning to systematically integrate AI into their products and services within the next 12 months. The strategic integration of AI can redefine our global competitiveness, as 63% of enterprises are set to increase AI spending by more than 10% in the coming year,’ said Purushothaman KG, partner and head technology transformation, KPMG in India.

He added that realising AI’s full value requires a concerted effort, combining robust governance frameworks, talent development, and embedding AI into core business operations.

‘Organisations that proactively embrace these imperatives will not only drive innovation but also set new benchmarks in delivering value and efficiency,’ Purushothaman said.

The report is based on insights from 1,390 global executives, which included 183 respondents from the technology sector.