IBM Study: Indian CEOs Bet Big on AI to Drive Innovation at Scale

A new global study by the IBM Institute for Business Value reveals that Indian CEOs are embracing AI to fuel long-term innovation and business growth. However, they also highlight the need for more budget flexibility and skilled expertise to fully leverage digital opportunities.

Need for Budget Flexibility and Clear Metrics

According to the study, 74% of Indian CEOs surveyed say more budget flexibility is needed to seize digital opportunities that can drive sustained growth. Despite strong interest in innovation, a lack of expertise and knowledge remains a top barrier to progress. Notably, 64% of CEOs strongly agree that their organization is already realizing value from GenAI investments beyond mere cost reduction.

The annual CEO study, which surveyed 2,000 global executives, indicates that AI investment is poised to more than double in the next two years. In India, 51% of CEOs confirmed that they are currently adopting AI agents and preparing to scale their implementation.

In India, 58% of surveyed CEOs identify integrated enterprise-wide data architecture as crucial for cross-functional collaboration. Additionally, 71% regard their organization’s proprietary data as essential to unlocking the full value of generative AI. However, 53% admit that recent fast-paced investments have resulted in fragmented, piecemeal technology environments.

Challenges in Achieving ROI from AI Initiatives

Surveyed CEOs report that only 25% of AI initiatives have delivered the expected return on investment (ROI), and just 15% have scaled enterprise-wide. Nonetheless, 62% say their organizations are now prioritizing AI use cases with measurable ROI. In fact, 66% of CEOs claim to have clear metrics in place to measure innovation success.

While 69% of CEOs acknowledge the pressure to invest in technology to avoid falling behind, only 39% believe in a "fast and wrong" approach over being "right and slow." Striking the right balance between operational needs and innovation investment continues to be a challenge, with 44% of respondents admitting difficulty in managing funds during unexpected changes.

By 2027, 84% of surveyed Indian CEOs expect positive ROI from scaled AI investments aimed at efficiency and cost savings, while 78% foresee similar returns from AI-driven growth and expansion initiatives.

Leadership and AI Talent Seen as Growth Enablers

Indian CEOs are also placing strategic emphasis on leadership and talent. About 67% state that organizational success hinges on a leadership team with deep strategic insight and decision-making authority. Meanwhile, 61% believe competitive differentiation depends on placing the right expertise in the right roles with appropriate incentives.

Barriers to innovation continue to include lack of clear strategy, risk aversion, and insufficient skills. To bridge this gap, 68% of CEOs say they plan to use automation to address talent shortages. Additionally, 54% confirm they are hiring for new AI-related roles that did not exist just a year ago.