A recent study by the IBM Institute for Business Value found that Indian CEOs are facing challenges related to workforce, culture, and governance as they work to implement and scale generative AI within their organizations. The study, which surveyed 3,000 CEOs from over 30 countries and 26 industries, highlighted the importance Indian CEOs place on AI governance, with 71% stating that trustworthy AI is not possible without effective governance. Despite this recognition, only 42% of Indian CEOs reported having good generative AI governance in place currently, suggesting a gap between intention and implementation.
Indian CEOs expressed the need for AI guardrails to responsibly realize business value and competitive success through AI-driven transformations. They also emphasized the role of people and skills in successful AI adoption, with 71% stating that success with AI depends more on people’s adoption than the technology itself. In response to this, 49% of Indian CEOs reported hiring for Gen AI roles that did not exist the previous year, highlighting the need for workforce training and reskilling.
The study also revealed that Indian CEOs recognize the importance of cultural shift in scaling AI but face challenges related to adoption and organizational collaboration. While 70% of Indian CEOs emphasized the importance of collaboration between finance and technology for organizational success, competition among senior executives was reported to hinder collaboration in nearly half of the organizations. Additionally, 48% of respondents acknowledged that cultural change is more crucial for becoming data-driven than overcoming technical challenges, underscoring the need for a shift in organizational culture.
Customer experience and product innovation emerged as top priorities for Indian CEOs in the next three years, with 59% expressing willingness to sacrifice operational efficiency for greater innovation. However, regulatory constraints were identified as a significant barrier to innovation for almost half of the CEOs surveyed. Currently, only 32% of Indian CEOs primarily fund their generative AI investments through net new IT spending, with the remaining 68% coming from reduced spending on other technologies.
In conclusion, the study highlights the complexities Indian CEOs face in implementing and scaling generative AI within their organizations, emphasizing the need for effective governance, workforce training, and cultural shift. By focusing on these key areas, Indian organizations can navigate AI-driven transformations more effectively and realize real business value for growth and competitive success.
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https://www.crn.in/ai/ibm-study-indian-ceos-say-there-is-no-effective-ai-without-effective-governance-but-most-dont-have-the-policies-in-place-yet/