A recent study conducted by the IBM Institute for Business Value has shown that there is a significant disparity between the perceived importance of AI governance among Indian CEOs and the actual implementation of effective policies. While 71% of Indian CEOs believe that effective AI governance is crucial, only 42% report having strong policies in place.
The study, which surveyed 3,000 CEOs from over 30 countries and 26 industries, found that 75% of Indian CEOs feel that governance should be established as AI solutions are designed. However, there is confusion among employees about their roles in AI governance, with 31% of CEOs acknowledging that there is a lack of understanding among employees about how strategic decisions impact them.
When it comes to generative AI, only 42% of respondents say they have good governance in place. Additionally, 71% of Indian CEOs believe that the successful adoption of generative AI depends more on people than technology, with 49% hiring for positions that did not exist last year. CEOs also project that 34% of their workforce will need training over the next three years, up significantly from 6% globally in 2021.
Cultural change is seen as more critical than technical challenges in becoming a data-driven organization, according to 48% of CEOs surveyed. However, competition among C-Suite executives often hinders collaboration. Despite some discomfort among their teams, 58% of CEOs are pushing for faster adoption of AI.
Top priorities for CEOs include customer experience and product innovation, with 59% willing to sacrifice operational efficiency for innovation. Regulatory restrictions remain a major barrier, cited by 48% of respondents. Only 32% of CEOs are using net new IT spending to fund AI investments, while the majority are reallocating existing technology budgets.
In light of these findings, Sandip Patel, Managing Director of IBM India and South Asia, stressed the importance of partnering with trusted experts to develop and execute effective AI governance practices. Patel emphasized the need for AI guardrails to bridge the gap between intent and implementation, enabling organizations to realize real business value in a responsible manner. The study underscores the necessity of a strategic approach to AI governance and the importance of addressing cultural and workplace challenges to maximize the potential of AI in Indian organizations.
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https://www.peoplematters.in/amp-technology-indian-ceos-struggle-with-effective-ai-governance-ibm-study-41765