AI and emerging tech: The top investment priority for 86% of Indian CEOs

Indian CEOs are prioritising AI and emerging tech, with 86 per cent viewing them as key investments for growth, while 90 per cent emphasise AI adoption and workforce upskilling, says EY survey

The survey reveals that 86 per cent of CEOs recognise emerging technologies as a key investment priority for the next 12 months, while 90 per cent believe that successful AI adoption and workforce upskilling will define industry leaders.  

 

This forward-looking approach sets Indian CEOs apart from their global counterparts, as they remain optimistic about the “cost of doing business, revenue growth, and competitive positioning” despite macroeconomic uncertainties. The report highlights that 90 per cent of Indian business leaders plan to invest in both existing operations and new opportunities through joint ventures, mergers, and acquisitions (M&A), underscoring their focus on long-term transformation.  

   

Transformation at core of business strategy

The survey underscores the pivotal role of transformation, with CEOs prioritising investment in people and strategic vision to maintain a competitive edge. Around 42 per cent of Indian CEOs are confident about optimising operations and boosting productivity through digitalisation, while 67 per cent are radically reimagining their business models to unlock new value creation opportunities.  

 

Rohan Sachdev, consulting leader at EY India, emphasised the importance of adaptability, saying, “Organisations that adopt a transformative mindset can convert upheaval into prospects for growth, consistently adapting and evolving to confidently shape their future with confidence. The EY survey reveals that the most confident CEOs prioritise enduring transformation strategies, focusing on strengthening relationships with customers and employees amid macroeconomic and technological shifts.”

 

The survey also highlights key focus areas for CEOs:  

-20 per cent prioritise improving customer engagement and retention  

-18 per cent focus on employee engagement and retention

-16 per cent aim to reduce costs and unlock savings

-14 per cent emphasise product and process innovation to enhance offerings and create new services  

 

Anurag Gupta, partner and national leader at EY-Parthenon India, said Indian companies’ adaptability gives them a competitive advantage. He said, “Those who embrace transformation can turn disruption into opportunity, constantly learning, evolving, and confidently shaping their future.” 

“According to the EY survey, 42 per cent of Indian CEOs are confident on optimising operations and boosting productivity, including through digitalisation, while 67 per cent are radically reimagining their business models to unlock new avenues for creating, delivering, and capturing value. Most CEOs are taking a long-term view of transformation, prioritising enhanced customer and employee engagement amidst macroeconomic and technological shifts, and placing people at the heart of their strategy for sustainable value creation,” he added.

 

Tech-driven growth

Indian business leaders are increasingly leveraging technology and strategic deals to accelerate growth. The survey finds that 90 per cent of Indian CEOs are actively exploring M&A opportunities, joint ventures, and strategic partnerships to optimise operations and expand market presence.  

 

Amit Khandelwal, managing partner, Strategy and Transactions, EY India, said that businesses prioritising technology, business transformation, and upskilling within their M&A strategies are likely to emerge stronger.

 

He said, “...  AI/digital-tech led transformation continues to shape corporate acquisitions, while defensive consolidation enhances operational resilience and cost efficiencies in a volatile economic landscape. With strong balance sheets and financing availability, the case for strategic M&A has never been more compelling in India.”

 

Navigating geopolitical uncertainties

 

Despite their optimism, “96 per cent of Indian CEOs identify escalating geopolitical instability and uncertainty as their primary concern”. Global political dynamics are significantly impacting business operations, making it crucial for CEOs to navigate uncertainties effectively.

 

Industry leaders who can balance risk, invest in long-term transformation, and harness technology to drive efficiency are likely to emerge as the frontrunners in India’s evolving business landscape, the report said. As companies embrace digitalisation and strategic M&A, their ability to turn “potential threats into growth opportunities” will be the key differentiator in 2025 and beyond, the EY report said.