76% Indian Enterprises To Boost Generative AI Investments For Sustainability: IBM Study
Indian enterprises embedding sustainability into their operations are 90% more likely to outperform peers on profitability.
A new study by IBM Institute for Business Value shows that 76% of Indian enterprises said they plan to increase their investment in generative artificial intelligence for sustainability, and 63% agreed that gen AI will be important for their sustainability efforts.
The study indicated that by reshaping the operationalisation of sustainability, organisations can unlock considerable business value. It emphasised the importance of businesses embedding sustainability into all facets of operations, as compared to treating it as an optional addition.
As per the study, organisations in India that embed sustainability are 41% more likely to attribute improvement in revenue from their sustainability efforts and are 90% more likely to outperform their peers on profitability. Additionally, spending on sustainability reporting exceeds spending on sustainability innovation by 38% in India, indicating demand for solutions that facilitate efficient data management and reporting.
“With AI reshaping industries, integrating sustainability into core business practices add to the long-term value creation. The commitment of businesses to invest in gen AI for sustainability signals a promising move towards a greener, more prosperous future,” said Sandip Patel, managing director, IBM India.
Organisations Pursue Sustainability, But Skills Shortage A Challenge
In India, 78% executives surveyed agreed that sustainability drives better business results, and 68% agreed that sustainability is central to their business strategy. At the same time, 62% said that sustainability needs to be a higher priority in their organisation.
Of the respondents, 86% agreed that high-quality data and transparency are necessary to achieve sustainability outcomes. However, a lack of requisite skills was identified as the top barrier to sustainability progress by 44% of executives surveyed.
Sustainability In Operations Can Drive Business Value
According to the study, organisations that embed sustainability spend slightly less on dedicated sustainability efforts as a share of their revenue compared to organisations that don’t embed.
At a global level, these organisations are also 191% more likely to have aligned their data and sustainability strategies to a great extent, and 80% more likely to be using AI for sustainability to a great extent, the study showed.
Only 28% of Indian executives surveyed are incorporating sustainability data and insights into operational improvements to a great extent. The study also showed that almost half (47%) of Indian organisations still struggled to fund sustainability investments.
