A recent survey conducted by the IBM Institute for Business Value revealed that Indian CEOs are facing challenges related to workforce, culture, and governance while implementing and scaling generative AI in their organizations. The study, which included 3,000 CEOs from various countries and industries, highlighted that 58 percent of Indian CEOs are pushing for the adoption of GenAI at a faster pace than some employees are comfortable with.
Among the key findings, it was noted that 70 percent of Indian CEOs believe that the success of their organization is dependent on the quality of collaboration between finance and technology teams. However, nearly half of them admitted that competition among C-Suite executives sometimes hinders this collaboration. Additionally, cultural change was identified as a crucial factor in becoming a data-driven organization, with 71 percent of respondents stating that trustworthy AI is impossible without effective governance in place.
According to the survey, 75 percent of Indian CEOs believe that GenAI governance should be established while designing solutions, rather than afterwards. Despite this sentiment, only 42 percent of CEOs reported having good GenAI governance, likely due to a lack of clarity within the organization regarding expectations. The study emphasized the importance of inspiring teams with a common vision, as opposed to imposing strict standards and goals, in achieving better results.
Sandip Patel, CEO of IBM India and South Asia, stressed the importance of AI guardrails to responsibly harness the benefits of AI for business growth and competitive success. He highlighted a gap between CEOs’ intentions regarding AI governance and its actual implementation, underscoring the need to partner with experts to develop and execute effective policies and practices.
The survey also revealed that Indian CEOs recognize the significance of people’s adoption of AI over the technology itself, with 49 percent actively hiring for AI Generation roles that were nonexistent last year. Additionally, 34 percent of respondents acknowledged the need for workforce training and reskilling over the next three years to keep up with technological advancements.
CEOs identified customer experience and product/service innovation as their top priorities for the coming years, with a focus on sacrificing operational efficiency for greater innovation. However, regulatory restrictions were cited as a significant barrier to innovation by nearly half of the CEOs surveyed.
In terms of funding AI investments, only 32 percent of Indian CEOs primarily allocate resources from net new IT spending, while the remaining 68 percent reduce spending in other technology areas to fund generative AI initiatives. The study, conducted in partnership with Oxford Economics, involved in-depth interviews with CEOs from various sectors on topics including business priorities, leadership, talent management, and industry disruption.
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https://www.thehindubusinessline.com/info-tech/ai-governance-a-priority-for-71-of-indian-ceos-reveals-ibm-study/article68312619.ece
