8 out of 10 Indians are currently planning to invest in AI software, looking for faster returns

BENGALURU: Nearly eight in 10 (81 percent) Indian software buyers plan to increase their investments in AI software in the coming year, much faster than their global counterparts’ 65 percent, according to a report on Monday.

According to online software marketplace G2, this underscores the growing influence of artificial intelligence on purchasing decisions, as artificial intelligence disrupts the way software is bought and sold.

The 2024 Buyer Behavior Report shows that when it comes to measuring the return on investment (ROI) on AI software investments, almost half of respondents cited employee productivity as the most important metric.

Among buyers who said their organization had purchased an AI platform in the last 3 months, 83 percent said their company had already seen a positive ROI on that purchase.

Godard Abel, co-founder and CEO of G2, said artificial intelligence is changing the way software is researched, purchased and sold.

“We have already seen a shift in B2B software purchasing towards consumer purchasing. Now that we have entered the era of artificial intelligence, we are seeing an acceleration in software innovation and a shift to digital shopping,” Abel mentioned.

Buyers want to find the right tools for their business and see value in them faster than ever.

However, despite increased expenses, suppliers face more difficult sales conditions. Shortlists are shrinking, purchasing cycles are longer, and ROI expectations are higher. As mentioned in the report, buyers are more demanding and are prioritizing quick wins and demonstrable value.

“Buyers are demanding faster return on investment, with 57 per cent of all buyers and 75 per cent of Indian buyers expecting positive returns on software purchases within three months,” he added.

While security concerns are high, there is a gap between intent and action.

About 48 percent of all buyers and 64 percent of people living in India said they purchased software without IT or InfoSec verification.