A recent survey conducted by the IBM Institute for Business Value revealed that Indian CEOs are facing challenges related to workforce, culture, and governance as they strive to implement and scale generative AI within their organizations. The survey, which included 3,000 CEOs from over 30 countries and 26 industries, highlighted the importance of AI governance for Indian CEOs, with 70 percent stating that the success of their organization is linked to collaboration between finance and technology. However, nearly half of the CEOs admitted that competition among C-Suite executives sometimes hinders collaboration.
The survey also found that cultural change is seen as more important than overcoming technical challenges when it comes to becoming a data-driven organization. Trustworthy AI was deemed impossible without effective AI governance by 71 percent of respondents, with 75 percent of Indian CEOs believing that GenAI governance should be established during the design phase of solutions, rather than after implementation. Despite this recognition, only 42 percent of Indian CEOs reported having good GenAI governance, possibly due to a lack of clarity regarding expectations within the organization.
Sandip Patel, CEO of IBM India and South Asia, emphasized the need for AI guardrails to responsibly harness real business value for growth and competitive success. The survey also highlighted the importance of people’s adoption of AI, with 71 percent of Indian CEOs believing that success with AI depends more on people than the technology itself. As a result, 49 percent of CEOs stated that they are hiring for AI Generation roles that did not exist last year, and 34 percent acknowledged the need for workforce training and reskilling over the next three years.
CEOs identified customer experience and product and service innovation as their top priorities for the next three years, with 59 percent willing to sacrifice operational efficiency for greater innovation. However, regulatory restrictions were cited as a significant barrier to innovation by almost half of the CEOs. In terms of funding generative AI investments, only 32 percent of Indian CEOs primarily rely on net new IT spending, while the remaining 68 percent reduce other technology spending to support AI initiatives.
Overall, the survey underscores the complexity of implementing AI governance and the importance of partnering with trusted experts to develop and implement effective practices and policies. It also highlights the shifting priorities and challenges that Indian CEOs face as they navigate the AI-driven transformations within their organizations.
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https://www.thehindubusinessline.com/info-tech/ai-governance-a-priority-for-71-of-indian-ceos-reveals-ibm-study/article68312619.ece/amp/
