A new survey by the IBM Institute for Business Value found that Indian CEOs face workforce, culture, and governance challenges as they act quickly to implement and scale generative AI across their organizations. More than half (58 per cent) are pushing their organization to adopt GenAI faster than some people are comfortable with.   

The annual global study of 3,000 CEOs from over 30 countries and 26 industries reveals the emphasis Indian CEOs place on AI governance. 70 per cent said their organization’s success is tied to the quality of collaboration between finance and technology, yet nearly half said competition among their C-Suite executives sometimes impedes collaboration. Nearly half acknowledged that cultural change is more important to becoming a data-driven organization than overcoming technical challenges.  

Seventy-one  per cent of those surveyed said trusted AI is impossible without effective AI governance in organizations. 75 per cent of Indian CEO respondents said GenAI governance must be established as solutions are designed, rather than after deployment. 

The study also noted a contrast in the adoption of AI governance policies, with only 42 per cent of Indian CEO respondents saying they have good GenAI governance in place. This may be because people in the organization are unsure of what is expected of them. In the survey, 75 per cent of respondents said inspiring their team with a common vision produces better outcomes than providing precise standards and targets. Yet 31 per cent acknowledge their employees do not understand how strategic decisions impact them. 

Sandip Patel, Managing Director, IBM India & South Asia, said, “As Indian CEOs navigate AI-led transformations within their organizations, they recognize the need for AI guardrails, so they derive real business value responsibly for growth and competitive success. However, our study reveals a gap between their intention and actual implementation. This scenario highlights the complexity of implementing AI governance, hence making a strong case for partnering with trusted experts to develop and execute effective practices and policies.” 

Seventy-one per cent of Indian CEOs said that succeeding with AI will depend more on people’s adoption than the technology itself, with 49 per cent saying they are hiring for Gen AI roles that did not exist last year. 34 per cent of those surveyed said their workforce will require retraining and reskilling over the next three years – up from just 6 per cent globally in 2021.  

The CEOs ranked customer experience and product and service innovation as their highest priorities for the next three years. 59 per cent of respondents stated they would sacrifice operational efficiency for greater innovation. However, nearly half pointed to regulatory constraints as their top barrier to innovation. Today, only 32 per cent of the Indian CEO respondents are primarily funding their generative AI investments with net new IT spending, with the remaining 68 per cent reducing other technology spending. 

The IBM Institute for Business Value, with Oxford Economics, interviewed 3,000 CEOs from over 30 countries and 26 industries from December 2023 through April 2024. These conversations focused on business priorities, leadership, technology, talent, partnering, regulation, industry disruption, and enterprise transformation.  

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