Indian chief executive officers are increasingly committing to investments in artificial intelligence (AI) to drive long-term growth and innovation, according to a recent study conducted by the IBM Institute for Business Value. The findings reveal that over half of Indian CEOs are actively adopting AI agents, with substantial preparations underway to implement them at scale across their organisations.
The study highlights how 51% of Indian CEOs are already integrating AI agents into their operations. This commitment is driven by the recognition that technological advancements, especially in generative AI and agentic AI, present a transformative opportunity. Sandip Patel, Managing Director of IBM India & South Asia, remarked that Indian CEOs are no longer debating whether to adopt AI but are focused on determining where AI can deliver the greatest competitive advantage and accelerate growth.
However, the research also signals significant challenges. While 58% of CEOs regard integrated enterprise-wide data architecture as critical for enhancing cross-functional collaboration, 53% acknowledge that recent investments have resulted in disconnected, piecemeal technology systems. This fragmentation hampers the creation of a cohesive data environment essential for maximising AI’s potential. Additionally, 71% of CEOs view their proprietary data as key to unlocking the value of generative AI, underscoring the central role data plays in digital transformation strategies.
Amid the rush to adopt AI, the study sheds light on the pressing need for robust AI governance. A striking 71% of Indian CEOs consider effective governance crucial for trusted AI deployments but only 42% report having strong generative AI governance frameworks in place. Furthermore, 75% believe that governance for generative AI should be embedded during the design phase rather than applied post-deployment. This governance gap points to a broader challenge around implementing policies and practices that ensure AI’s responsible and ethical use.
Beyond governance, the study highlights additional obstacles related to workforce adaptation and cultural transformation within organisations. CEOs acknowledge the complexity of reskilling personnel and nurturing a culture capable of embracing an AI-driven future. Sandip Patel emphasised that to derive real business value from AI responsibly, companies must establish clear guardrails and often need to collaborate with external experts to build effective governance structures.
The research also underscores a need for greater budget flexibility. Indian CEOs want to invest more aggressively in AI but feel constrained by budget rigidity, which limits their ability to capitalise fully on digital opportunities. This calls for organisational agility in resource allocation to keep pace with rapid technological evolution.
In summary, while Indian CEOs are leading a wave of AI-driven transformation with strong adoption intent and recognition of data’s value, addressing fragmented technology systems, governance shortfalls, workforce challenges, and budget flexibility will be critical for realising AI’s full potential. The balancing act between innovation and responsible implementation will define the success of AI strategies in India’s dynamic business environment.
Source: Noah Wire Services
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