8 in 10 Indians now plan to invest in AI software, seek faster returns
Bengaluru: Nearly eight in 10 (81 per cent) Indian software buyers plan to increase their investment in AI software over the next year, way ahead that their global peers at 65 per cent, a report showed on Monday.
This underscores the growing influence of AI on purchasing decisions as AI disrupts the way software is bought and sold, according to online software marketplace G2.
The ‘2024 Buyer Behaviour Report’ found that when it comes to how return on investment (ROI) for AI software investments is being measured, employee productivity was cited as the top metric by nearly half the respondents.
Among buyers who said their organisation had purchased an AI platform within the last 3 months, 83 per cent reported their firm has already seen a positive ROI from that purchase.
Godard Abel, Co-founder and CEO, G2, said AI is changing the way software is researched, purchased and sold.
“We’ve already observed the shift of B2B software buying to mirror consumer-like shopping. Now, as we’ve entered an age of AI, we’re seeing an acceleration in software innovation and the shift to digital buying,” Abel mentioned.
Buyers want to find the right tools for their business and see value from them faster than ever.
However, despite increased spending, vendors face a tougher sales environment. Shortlists are shrinking, buying cycles are longer, and ROI expectations are higher. Buyers are more discerning and prioritise quick wins and demonstrable value, the report mentioned.
“Buyers demand faster ROI, with 57 per cent of all buyers and 75 per cent of India-based buyers expecting positive returns on their software purchases within three months,” it added.
While security concerns are high, a gap exists between intent and action.
About 48 per cent of all buyers and 64 per cent of those based in India said they have purchased software without IT or InfoSec vetting.