Indian CEOs Double Down On AI Investments, But Budget Flexibility Needed: IBM Study
Almost three-fourth of CEOs say more budget flexibility is needed to capitalise on digital opportunities.
Indian chief executive officers are open to investing in digital opportunities that drive long-term growth and innovation but need more budget flexibility to do so, a new study by IBM Institute for Business Value has found.
As per the annual study, 51% of surveyed Indian CEOs confirm they are actively adopting AI agents today and preparing to implement them at scale.
In India, 58% of CEOs identify integrated enterprise-wide data architecture as critical for cross-functional collaboration, and 71% view their organisation's proprietary data as key to unlocking the value of generative AI. However, organisations may be struggling to cultivate an effective data environment: 53% of respondents acknowledge that the pace of recent investments has left their organisation with disconnected, piecemeal technology.
"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.
Less Than A Third Of AI Initiatives Met ROI Expectations
Surveyed CEOs said that only 25% of AI initiatives have delivered expected ROI over the last few years, and only 15% have scaled enterprise wide. To accelerate progress, 62% of CEO said their organisation is going for use cases based on ROI, with 66% having clear metrics to measure innovation ROI effectively.
Of the CEO respondents, 64% also said their organisation is realising value from generative AI investments beyond cost reduction. However, 69% also acknowledged that the risk of falling behind drives investment in some technologies before they have a clear understanding of its value.
By 2027, 84% of CEOs expect their investments in scaled AI efficiency and cost savings to have returned a positive ROI, while 78% expect to see a positive ROI in scaled AI growth and expansion.
Indian CEOs Prioritise Strategic Leadership, AI Talent
For 67% of CEOs, their organisation’s success is tied to maintaining strategic leadership, with 61% saying that differentiation depends on having the right expertise in the right positions with the right incentives.
CEOs cite lack of clear innovation strategy, aversion to risk and disruption, and lack of expertise and knowledge as top barriers to innovation.
Over two third (68%) also said their organisation will use automation to address skill gaps, and 54% are hiring for roles related to AI that did not exist a year ago.
