India leads the global mid-market on AI integration but pays the steepest complexity cost: Freshworks study

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Freshworks recently released The Global Cost of Complexity Report: The Mid-Market AI Complexity Trap, featuring a detailed examination of how AI complexity is affecting mid-market companies in India. The research, based on responses from over 9,000 mid-market IT decision-makers across six countries, finds that in India, 27% of the average mid-market AI budget is lost to complexity overhead, contributing to an estimated ₹33,000 crore in wasted AI spend every year.

Despite this “complexity tax,” Indian mid-market companies remain bullish on AI. Ninety-four per cent report a growth outlook for the next 12 months, and 94% plan to increase AI investment over the next 12–24 months. At the same time, IT leaders are under intense pressure to deliver: 74% of Indian executives expect AI investments to show ROI within eight months, yet 51% say AI deployments alone take 6–12 months just to go live, creating a sharp gap between expectations and...

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