Generative AI is a central investment theme for Indian CEOs, with 100% making or planning significant investments in Generation AI, according to an EY survey of Indian company CEOs. To fund these investments, 84% of CEOs reported that they are raising new capital or reallocating investments from other budgets or technology investments toward Gen AI initiatives.
Among CEOs surveyed, 82% strongly agreed or agreed that Generation AI would help them become better business leaders, and 84% said Generation AI could potentially provide them with a competitive advantage.
Gen AI: changes and challenges
While the AI generation brings opportunities, businesses also face technology-related challenges and complexities. Among the CEOs surveyed, 80% recognize the uncertainties surrounding the AI generation, which create barriers to rapid development and implementation of an AI strategy.
According to the report, 80% of CEOs admit that the AI generation will force them to disrupt their own business models to maintain a competitive advantage. Additionally, 52% believe that the combination of rapid technological developments and the regulatory environment limits the allocation of capital to the AI generation.
The biggest challenge organizations face in allocating capital towards the AI generation is the rapid pace of technological evolution. According to 20% of CEOs, keeping up with the pace of change is a major obstacle. An equal number of CEOs find the dynamic nature of the regulatory environment problematic. For 12% of CEOs, the substantial initial investment required for AI is a major concern.
CEOs struggle to build a robust AI strategy
Although CEOs recognize that AI is crucial to achieving competitive advantage and effective leadership, uncertainty makes it difficult to pursue an AI strategy. Of those surveyed, 80% said uncertainties surrounding AI make it difficult to implement a solid strategy. At the same time, 88% believe they have sufficient technical understanding of AI generation to effectively guide their AI strategy.
Around 50% of CEOs also said they were experimenting with or optimizing AI, indicating that there is still some way to go when it comes to their maturity journey.
Revenue growth expectations
Among CEOs surveyed, 48% believe AI will have a significant impact on their revenue growth over the next two years, indicating alignment between investments in the AI generation and expected growth in AI. business.
A majority (92%) of companies have already invested or are in the process of investing in the ability to augment third-party AI with their first-party data. Additionally, 82% of CEOs said their current access to investment capital accelerates progress in the AI generation, indicating that companies with strong finances are better positioned to navigate the challenges and complexities of the AI landscape. AI.
“In adopting an AI-first approach, businesses must build a strong foundation, focusing on platforms, people and processes. However, strategic policy initiatives are crucial, requiring increased government involvement, infrastructure support, data accessibility and responsible AI governance,” said Mahesh Makhija. , Partner and National Technology Consulting Leader, EY India.
