70% CEOs ramping up tech investments to improve biz in next 1 year: Report

EY's CEO Outlook Pulse Survey 2024 said that 80 per cent of the CEOs surveyed were optimistic regarding their companies' revenue prospects

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The chief executive officers (CEOs) of Indian companies are channelling investments into technology, including Artificial Intelligence (AI), to improve growth and enhance productivity over the next 12 months, according to a report revealed on Thursday.

According to consultancy EY's CEO Outlook Pulse Survey 2024, based on a survey of 100 CEOs, this percentage is much higher than their global counterparts at 47 per cent.

"Commitment to tech investments is not just a response to the present but a strategic leap towards the future. The survey underscores this momentum, revealing that a substantial majority of CEOs are actively aligning their organisations with an AI-centric blueprint for innovation and productivity," said Mahesh Makhija, EY India Technology Consulting Leader.

He added that CEOs must navigate this landscape with a dual focus—accelerating growth through high-value tech investments and simultaneously fortifying data with integrity and cybersecurity.

The report also said that 80 per cent of the CEOs surveyed were optimistic regarding their companies' revenue prospects. An even higher 88 per cent were confident about profitability.

The sentiment was also visible in the mergers and acquisitions (M&A) landscape, with 96 per cent of respondents actively eyeing transactions in the coming year, predominantly through initial public offerings (IPOs).

"In the M&A landscape, a higher percentage of CEOs and investors are seeming to be bullish, actively seeking deals, driven by tech acquisition, market expansion, consumer shifts, and supply chain security," said Amit Khandelwal, managing partner, strategy and transactions, EY India.

The CEOs said that the top strategic drivers for pursuing acquisitions were acquiring technology, new production capabilities or innovative startups (44 per cent), growing market share (36 per cent), reacting to changing customer behaviour (32 per cent), and securing supply chains (32 per cent).

The survey, however, said that the importance of sustainability had slipped down in the priority list of CEOs, overshadowed by financial constraints and a shift in boardroom focus.

As many as 42 per cent of CEOs said they faced challenges in articulating a "compelling financial case" for sustainability investments.

It said that while 44 per cent "strongly" recognise the impact of sustainability issues on their supply chains, 40 per cent acknowledge "Green hushing"—fearing being accused of "Greenwashing".