Indian CEOs double down on AI investments to drive long-term innovation: IBM Study
A new global study by the IBM Institute for Business Value suggests that Indian CEOs are open to investing in digital opportunities that drive long-term growth and innovation, but need more budget flexibility to do so. They also cite a lack of expertise and knowledge as a top barrier to innovation in their organization. The study points to Indian CEOs investing in AI with purpose and having clear metrics to measure innovation ROI.
The annual IBM CEO study, which surveyed 2,000 CEOs globally, revealed that executive respondents expect the growth rate of AI investments to more than double in the next two years. In India, 51% of surveyed CEOs confirm they are actively adopting AI agents today and preparing to implement them at scale.
According to the findings, in India, 58% of surveyed CEOs identify integrated enterprise-wide data architecture as critical for cross-functional collaboration, and 71% view their organization’s proprietary data as key to unlocking the value of generative AI. However, the research indicates organizations may be struggling to cultivate an effective data environment: 53% of respondents acknowledge that the pace of recent investments has left their organization 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. “To lead in this era, CEOs must see disruption as opportunity, focusing on tangible business outcomes while navigating constant change. At IBM, we’re helping Indian enterprises scale AI responsibly and drive seamless AI adoption for long-term growth,” he added.
Surveyed CEOs report 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 respondents say their organisation is leaning into AI use cases based on ROI, with 66% reporting that their organization has clear metrics to measure innovation ROI effectively.
Among those surveyed, 64% of CEO respondents say their organisation is realising value from generative AI investments beyond cost reduction.
Atleast 69% of CEOs surveyed acknowledge that the risk of falling behind drives investment in some technologies before they have a clear understanding of the value they bring to the organization, but only 39% say it’s better to be “fast and wrong” than “right and slow” when it comes to technology adoption.
44% of surveyed CEOs admit their organisation struggles to balance funding for existing operations and investment in innovation when unexpected change occurs, as 74% of say more budget flexibility is needed to capitalize on digital opportunities that drive long-term growth and innovation.
By 2027, 84% of surveyed CEOs expect their investments in scaled AI efficiency and cost savings to have returned a positive ROI, while 78% expect to see a positive return from their investments in scaled AI growth and expansion.
Indian CEOs Prioritize Strategic Leadership and AI Talent to Unlock Future Growth
As many as 67% of CEO respondents say their organisation’s success is directly tied to maintaining a broad group of leaders with a deep understanding of strategy and the authority to make critical decisions.
While 61% of CEOs surveyed say 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 in their organization.68% of CEOs say their organisation will use automation to address skill gaps.
Among 54% of CEO respondents say they are hiring for roles related to AI that did not exist a year ago.