Indian CEOs are increasingly placing their bets on Artificial Intelligence (AI) as a cornerstone of long-term business growth, despite mixed results so far. According to the IBM Institute for Business Value’s annual CEO study, Indian business leaders are more open than ever to investing in AI and digital opportunities but they also recognize the need for budgetary flexibility. They also cited lack of expertise and knowledge as a top barrier to innovation in their organization. CEOs in India, it added, are investing in AI with purpose while having a clear metric to measure innovation ROI.
The annual report, which surveyed 2,000 CEOs globally, highlighted that Indian companies are fast embracing AI technologies. It said that 51 per cent of Indian CEOs confirmed that they are actively adopting AI agents today and preparing to implement them at scale.
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According to the report, 58 per cent of CEOs in India believe that having a unified data system across the company is essential for cross-functional collaboration. Also, 71 per cent say their company’s own data is crucial for getting the most out of generative AI. However, 53 per cent admit that recent fast-paced investments have resulted in scattered and uncoordinated technology systems.
So, what’s driving this aggressive adoption? Per the report, a mix of strategic foresight, competitive pressure, and the evolving promise of AI beyond just cost-cutting.
From cautious optimism to committed action
While only 25 per cent of Indian AI initiatives have delivered expected ROI so far and 15 per cent have scaled enterprise wide, this has not dampened enthusiasm of CEOs. Instead, they are increasing outcome-driven adoption. Around 62 per cent of company leaders are prioritizing AI use cases with clear return potential and 66 per cent said that their organization has adopted clear metrics to measure innovation ROI effectively.
“Indian CEOs are at the forefront of a massive transformation fuelled by technological advancements like generative AI and Agentic AI. It is no longer if they should adopt AI but where it can deliver the strongest competitive edge, and accelerated growth,” said Sandip Patel, Managing Director, IBM India & South Asia.
Interestingly, the IBM report maintained that 64 per cent of CEO respondents said that their organisation is realising value from generative AI investments beyond cost reduction.
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