According to a study by the IBM Institute for Business Value, Indian CEOs prioritize AI governance, with 71% believing that trustworthy AI is only achievable through effective governance. Additionally, 75% of Indian CEOs advocate for implementing generative AI governance during the design phase of solutions rather than afterwards. However, only 42% of Indian CEOs currently feel that they have good governance of generative AI in their organizations, citing workforce, culture, and governance challenges as barriers to implementation.
The study also highlights the importance of inspiring teams with a common vision, as 75% of Indian CEOs believe this leads to better results than providing precise standards and objectives. Nevertheless, 31% admit that their employees do not fully understand how strategic decisions impact them. Sandip Patel, general manager of IBM India and South Asia, emphasizes the necessity of AI guardrails to responsibly leverage AI for business growth and competitive success, noting a gap between intention and implementation.
In terms of skills, Indian CEOs recognize that successful AI adoption depends more on people than technology, with 71% acknowledging the importance of workforce adoption. Nearly half of Indian respondents are hiring for generative AI roles that were non-existent last year, and 34% of the workforce is expected to undergo training and reskilling in the next three years. Collaboration between finance and technology is crucial for organizational success, according to 70% of Indian CEOs, despite challenges stemming from competition among senior management executives.
Cultural change is deemed more important than overcoming technical challenges in becoming a data-driven organization, as acknowledged by 48% of Indian CEOs. Furthermore, 58% of Indian CEOs are pushing for faster adoption of generative AI, even if it makes some employees uncomfortable. Regulatory restrictions pose a significant barrier to innovation, with 59% of Indian CEOs prioritizing customer experience and product and service innovation for the next three years. Despite this priority, 48% point to regulatory restrictions as the main obstacle to innovation.
When it comes to funding generative AI investments, only 32% of Indian CEOs primarily allocate net new IT spending, with the remaining 68% reducing spending on other technologies to support AI initiatives. Overall, the study underscores the complexities and challenges faced by Indian CEOs in implementing and scaling generative AI in their organizations, emphasizing the need for comprehensive AI governance and addressing workforce, culture, and collaboration issues.
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https://www.ndtvprofit.com/technology/7-of-10-indian-ceos-say-trusted-ai-is-impossible-without-effective-governance-ibm-study