Indian Enterprises to Appoint CAIOs in 67% of Firms by 2027, IBM Study

Indian enterprises are accelerating AI leadership: 25% already have a Chief AI Officer (CAIO), and 67% plan to appoint one within two years, the IBM Institute for Business Value finds — a sign that organisations are shifting from pilots toward scaled AI programs with a named executive accountable for outcomes. 

Why CAIOs are moving to the C-suite

The IBM study reports strong C-suite backing for CAIOs in India: 77% say they have solid executive support, and 67% report direct CEO backing. That mandate is reflected in reporting lines; 60% of CAIOs report to the CEO or board, which gives these leaders authority to prioritise and fund enterprise-wide AI initiatives.

A broader mandate

Indian CAIOs carry a wide remit. The study lists the top responsibilities as defining AI strategy (70%), change management for AI adoption (57%), and directing AI implementation (57%). CAIOs are also involved in talent work: 43% oversee upskilling and 37% run reskilling programs. Importantly, 60% say the CAIO controls the AI budget, cementing accountability for investment and outcomes. 

Technical depth and early-stage adoption signals

The IBV research shows Indian CAIOs are technically grounded: 70% have data backgrounds and 73% come from technology roles — which helps bridge strategy and execution. The study also finds most firms are still piloting (about 67%), but CAIO-led governance appears to make scaling more feasible; fewer Indian CAIOs (18%) rate implementation as “very difficult”, compared with 30% globally.

IBV’s broader analysis shows organisations with a CAIO achieve roughly 10% higher ROI on AI spend and are likelier to outperform peers on innovation — evidence that formal leadership and accountability translate into measurable business impact. “As Indian enterprises move from pilots to scaled AI adoption, the role of the CAIOs will be central to their AI transformation journeys. CAIOs will not only bridge the gap between business and technology but also set the strategic direction and keep teams aligned on shared goals,” said Viswanath Ramaswamy, Vice President, Technology, IBM India & South Asia. 

What this means for boards and CXOs

1. Define the CAIO remit clearly. Give the role budget authority and measurable KPIs (ROI, time-to-value, model performance and governance metrics).

2. Match technical depth with enterprise influence. CAIOs need a seat at the table and tight cross-functional ties (IT, data, security, HR).

3. Treat skilling as a strategic investment. With many CAIOs overseeing upskilling/reskilling, boards should fund structured programs that convert domain expertise into operational AI capability.

4. Move from pilots to portfolio management. A CAIO’s mandate should include rationalising use cases, consolidating platforms, and managing model risk and costs.

These are practical steps that align with the IBV finding that CAIOs who combine measurement, teamwork and authority are likelier to deliver higher AI ROI.

Methodology note: IBM IBV’s CAIO research surveyed more than 600 CAIOs across 22 geographies and 21 industries and reached out to over 2,300 organizations in Q1 2025. The India-specific findings were published by IBM’s India newsroom on Oct. 6, 2025.