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Study by IBM: Majority of Indian CEOs believe AI implementation relies on effective governance

Study by IBM: Majority of Indian CEOs believe AI implementation relies on effective governance
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Indian CEOs are facing challenges in implementing generative AI, according to a new IBM study. The study found that CEOs believe trustworthy AI is not possible without effective governance, and that governance should be established alongside solutions rather than after implementation. Despite recognizing the need for AI guardrails, there is a gap between intention and implementation.

Only 42 percent of Indian CEOs currently report having good generative AI governance, with organizational uncertainty over expectations potentially contributing to this. The study also showed that inspiring teams with a common vision produces better results than offering precise standards, but there is a lack of understanding among employees regarding how strategic decisions impact them.

People and skills play a critical role in the successful adoption of generative AI, with 71 percent of Indian CEOs believing that adoption by people is more important than the technology itself. Almost half of CEOs are hiring for Generation AI roles that did not exist in 2023, and 34 percent anticipate the need for retention and reskilling of their workforce over the next three years.

Indian CEOs recognize the need for cultural change to scale AI effectively, but face challenges in organizational collaboration and adoption. A majority believe that the quality of collaboration between finance and technology is crucial to company success, but competition between executives can hinder collaboration.

In terms of adoption speed, 58 percent of Indian CEOs are pushing for faster adoption of Generative AI than some employees are comfortable with. Approximately 32 percent are funding their generative AI initiatives through new IT spending, while the remaining 68 percent are reallocating funds from other technology areas.

Overall, the study highlights the importance of AI governance, workforce training, and cultural change in successfully implementing generative AI in Indian organizations.CEO of IBM India and South Asia, Sandip Patel, emphasized the need for AI guardrails to responsibly realize business value for growth and competitive success. Indian CEOs are increasingly focused on AI governance, but there is room for improvement in implementation to bridge the gap between intention and actual practice.

Article Source
https://indianexpress.com/article/technology/artificial-intelligence/71-indian-ceos-feel-ai-implementation-impossible-without-effective-governance-ibm-report-9404110/lite/

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