Indian CEOs embrace AI for innovation but seek more flexibility: IBM

IBM study finds Indian CEOs committed to AI and innovation despite low ROI from early efforts, as they seek better data integration and talent to scale deployment

Indian CEOs are open to investing in digital opportunities that drive long-term growth and innovation but need more budget flexibility to do so, according to a new global study by the IBM Institute for Business Value. They also cite lack of expertise and knowledge as a top barrier to innovation within their organisations.

 

The study highlights that Indian CEOs are approaching AI adoption with clear purpose and well-defined metrics to evaluate innovation return on investment (ROI).

 

In India, 51 per cent of surveyed CEOs confirmed they are actively adopting AI agents and preparing to implement them at scale. 

   

According to the findings, 58 per cent of Indian CEOs identified integrated, enterprise-wide data architecture as critical for cross-functional collaboration, while 71 per cent viewed their organisation’s proprietary data as key to unlocking the value of generative AI.

 

However, the research also indicates that many organisations may be struggling to cultivate an effective data environment: 53 per cent of respondents acknowledged that the pace of recent investments has left their organisation with disconnected, piecemeal technology.

 

“Indian CEOs are at the forefront of a massive transformation fuelled by technological advancements like generative AI and Agentic AI. It is no longer about if they should adopt AI but where it can deliver the strongest competitive edge and accelerated growth,” said Sandip Patel, managing director, IBM India & South Asia. “To lead in this era, CEOs must see disruption as opportunity, focusing on tangible business outcomes while navigating constant change. At IBM, we’re helping Indian enterprises scale AI responsibly and drive seamless AI adoption for long-term growth,” he added.

 

The annual IBM CEO study, which surveyed 2,000 CEOs globally, revealed that executive respondents expect the growth rate of AI investments to more than double over the next two years. 

 

Highlights from the IBM CEO Study – India Insights:

 

Less Than a Third of AI Initiatives Met ROI Expectations, But Indian CEOs Stay Committed

 

Surveyed CEOs reported that only 25 per cent of AI initiatives have delivered expected ROI over the past few years, and only 15 per cent have scaled enterprise-wide.

 

To accelerate progress, 62 per cent of respondents said their organisations are prioritising AI use cases based on ROI, with 66 per cent stating they have clear metrics to measure innovation ROI effectively.

 

64 per cent of CEOs said their organisations are realising value from generative AI investments beyond cost reduction.

 

69 per cent acknowledged that fear of falling behind drives investment in certain technologies, even before fully understanding the value they bring. However, only 39 per cent agreed it is better to be “fast and wrong” than “right and slow” when it comes to technology adoption.

 

By 2027, 84 per cent of CEOs expect their investments in scaled AI efficiency and cost savings to yield positive ROI, while 78 per cent expect positive returns from scaled AI investments focused on growth and expansion.