India has become central to German software giant SAP's global artificial intelligence (AI) strategy, according to Philipp Herzig, the company's Chief Technology Officer (CTO) and Chief AI Officer. SAP is focusing its efforts on India as it expands its predictive and agentic systems, with Herzig emphasizing the rising long-term enterprise value of AI.
SAP is concentrating key engineering and AI deployments, including its Joule AI copilot, at its Bengaluru campus. Joule AI is designed to integrate with and assist SAP's business systems. Herzig stated that the company's teams have moved to India because the campus has a significant focus on all innovation topics, and the strategy involves embedding AI experiences deeply into all products.
India plays a vital role for SAP, hosting its second-largest workforce with 17,000 employees and standing as the largest development center outside of Germany. SAP's campus in Devanahalli, Bengaluru, which was inaugurated in August, also houses the company's finance, human resources, and procurement teams, facilitating the seamless execution of its AI strategy. According to Herzig, India provides a unique combination of engineering talent, domain expertise, and collaborative infrastructure, enabling SAP to develop one of the industry's most ambitious AI programs. He also noted that the integrated experience created out of India is a significant differentiator for SAP in AI.
SAP has already deployed 20 AI agents across various functions, including finance, supply chain logistics, scenario planning, and expense validation, and plans to expand to 40 agents by the end of the year. These AI agents automate data preparation and analysis, reducing the time spent on traditional tasks from hours to minutes, and creating significant business value.
A recent SAP survey and report indicate that Indian enterprises are investing an average of $31 million in AI this year, surpassing the global average of $26.7 million. This investment is projected to drive an ROI of 15% in 2025, which is expected to double within two years. The "Value of AI Report 2025," created in collaboration with Oxford Economics, surveyed 1,600 senior business leaders across eight countries, including 200 from India. The report highlights that 93% of Indian organizations expect positive returns on their AI investments in less than three years, reflecting the highest level of confidence among all countries surveyed.
Indian businesses are already seeing tangible value from AI initiatives, with 36% reporting that AI has helped address key challenges, leading to better insights, greater innovation, and stronger customer engagement. Furthermore, 78% of organizations are integrating AI into workforce planning through upskilling and reskilling programs to enable an AI-powered future.
SAP Labs India is also concentrating on driving global AI innovations, including custom AI and multi-agent AI technology. The company is expanding its presence in India, with a new campus in Bengaluru under construction, with the first phase expected to be completed by Q2 2025. SAP Labs India is sharply focused on driving global AI innovations from here.
