The Rise of AI in Investment: Insights from SAP Labs India

AI Takes Center Stage in Business Strategies

Artificial intelligence (AI) is leading the conversation in the investment landscape, particularly in business process management and product development. This perspective comes from Sindhu Gangadharan, Managing Director of SAP Labs India and Chairperson of the apex IT industry body, Nasscom.

Adapting to Market Changes

In an enlightening interview with PTI, Gangadharan emphasized the necessity of intelligent systems that enable businesses to swiftly adapt to changing tariffs and market conditions.

AI as the Primary Investment Focus

“Whether it’s in business process management or services, the prominent focus of investments is undoubtedly AI,” she stated, affirming its critical role in shaping the future of business.

Tracking Toward Growth Targets

Addressing concerns about the Indian IT industry’s ambitious $300 billion target for FY26 amidst uncertainties, Gangadharan remarked, “As of now, yes,” affirming that the industry remains on track.

New Campus for Strategic Innovation

SAP Labs recently inaugurated a massive 41-acre campus in Devanahalli, its second in Bengaluru and one of the largest globally, with a total investment of 194 million euros. This new center is designed to accommodate 15,000 professionals.

India as an Innovation Hub

Gangadharan reaffirmed India’s status as a global innovation hub for SAP, noting that around 40% of their global R&D resources are based in the country, driving innovations for diverse global markets.

Strategic Importance of SAP Labs India

“This campus, SAP Labs India Innovation Park, stands as a testament to the strategic significance we place on India,” she added, emphasizing the country’s talent, customer-centric approach, and surrounding ecosystem.

AI-Driven Productivity Gains

Gangadharan highlighted that advancements in AI are “changing the game,” showcasing how AI-driven productivity improvements translate into better customer outcomes.

Impact on Global Business Transactions

“Today, 87% of the world’s business transactions touch an SAP system, illustrating the extensive applications we provide for our customers,” she elaborated.

AI in Automotive Manufacturing

She further noted, “Eight out of ten cars on Indian roads are manufactured by SAP’s clients, reflecting the scale and critical business processes we support.”

Investment Fueling Strategic Innovation

SAP’s ongoing investments, particularly in the new Bengaluru campus and its capacity for 15,000 professionals, align with its goal of fostering strategic innovation.

The Quest for Talent

Gangadharan underscored the importance of attracting the right talent to develop the necessary portfolio and strategic use cases to meet customer needs.

Automation and the Future of Jobs

Regarding the impacts of AI on employment, she noted that as automation increases, particularly in code generation, roles related to such tasks will need to adapt through reskilling and relearning.

Collaboration for Skills Development

Nasscom is actively investing time and resources to assist the industry in fostering future skills, bridging the gap between industry, academia, and government.

Preparing Young Talent

Gangadharan emphasized the importance of nurturing young professionals with the right mindset and skills to embrace future roles within the tech sector.

Strategic Realignment in the Industry

She believes some industry shifts represent “strategic realignments to the core portfolio,” ensuring that AI remains a focal point in investments.

The Future of the Tech Industry

As the industry evolves, Gangadharan reassured that a thoughtful realignment is beneficial to all stakeholders involved.

Conclusion

With AI leading the charge, the investment landscape in India continues to evolve, supported by significant advancements in technology and commitment to innovation. The future lies in strategic partnerships, nurturing talent, and adapting to change.