Lenovo CIO Playbook 2026: 99 Percent of Indian Enterprises Plan to Increase AI Investments; Budgets Expected to Grow 19 Percent Year-Over-Year

As AI becomes increasingly embedded into enterprise strategy, driving revenue growth, improving profitability, and enhancing business & customer experience have emerged as the top three business priorities for CIOs in Asia Pacific.

From ROI Validation to Outcomes-Led AI

Building on last year’s AI-nomics focus on validating returns and business cases, the 2026 Playbook highlights a decisive shift toward outcomes-led AI adoption. CIOs remain confident in AI’s value, but are applying greater rigor to ensure investments translate into sustained impact.

88% of AP organizations expect a positive ROI from AI in 2026, with an average anticipated return of 2.8x (US$2.85 for every US$1 invested). Yet, scaling AI beyond pilots remains a key challenge, reinforcing the importance of governance, operating models, and lifecycle management.

AI Adoption Expands Beyond IT

AI adoption across Asia Pacific continues to accelerate and is no longer confined to IT. 66% of organizations are already piloting or systematically adopting AI, while 15% remain in early stages and 19% are considering adoption.

In India, 59% are already piloting or systematically adopting AI, with 19% in early stages and 23% considering adoption, highlighting sustained interest and a strong pipeline for broader deployment.

AI is increasingly being deployed across customer service, marketing, operations, finance, and industry-specific lines of business, reshaping how enterprises operate and compete. Notably, half of surveyed organizations report that non-IT departments are now funding AI initiatives, elevating the CIO’s role as an enterprise-wide orchestrator.

Agentic AI Emerges as the Next Enterprise Opportunity

Interest in Agentic AI is expected to double over the next 12 months. Today, 21% of Asia Pacific organizations report significant usage, 59% are exploring or planning limited deployments, particularly across telecommunications, healthcare, and government, where operational complexity and scale are highest.

Despite growing interest, readiness remains uneven. Only 10% of organizations consider themselves ready for scaled Agentic AI implementation, with 41% requiring more than 12 months to meaningfully scale. Security, governance, data quality, and integration complexity remain key barriers.

“Agentic AI represents a fundamental shift in how intelligence is embedded into the enterprise,” said Fan Ho, ED & GM, Asia Pacific, Solutions & Services Group, Lenovo. “With nearly 60% of organizations already exploring Agentic AI and the majority are choosing a measured path to scale, it reflects that enterprises want AI that operates within core workflows, meets security and governance expectations, and delivers consistent outcomes.”

Hybrid AI Becomes the Default Enterprise Architecture

As AI workloads scale, infrastructure strategy is emerging as a defining CIO decision. The Playbook finds that 86% of organizations across Asia Pacific now incorporate on-premises or edge environments as part of hybrid AI architectures, effectively making hybrid AI the default model for enterprise AI deployments.

In India, 90% of organizations prefer hybrid AI architectures, combining on-prem and edge environments to balance performance, security, and regulatory requirements. Key drivers include data privacy and compliance requirements, high cloud costs, and the need to support distributed operations and data.

“India’s AI journey reflects a builder mindset. As 59% of organizations move into active adoption and budgets grow at the fastest pace in the region, enterprises are prioritizing infrastructure and workforce readiness to industrialize AI responsibly and at scale. With nearly $3 in expected return for every dollar invested, AI is evolving from pilot programs to core business infrastructure.” said Shailendra Katyal, Vice President and Managing Director, Lenovo India.

CIO Imperatives for 2026

The Lenovo CIO Playbook 2026 highlights three priorities shaping the year ahead:

1. AI inferencing becomes the value engine – Over a model’s lifecycle, inferencing costs can be up to 15 times higher than training. By 2030, 75% of AI compute will be dedicated to inferencing, with 80% of enterprises relying on distributed edge infrastructure.
2. Employee productivity rises as a strategic priority – Deploying AI devices to enhance productivity & local inferencing has climbed to the #2 IT Investment priority, alongside growing adoption of AI PCs, with 50% of enterprise PC purchases expected to shift to models with on-device AI agents.
3. Scaling AI remains the defining challenge – While 88% of organizations expect positive ROI, only around half of AI proof-of-concepts reach production, making scale – not ambition – the critical gap.

For more information: Download the Lenovo AP CIO Playbook 2026

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