More than 80% Indian CEOs investing in GenAI for competitive edge: Report

Most of them have either completed or are hiring new talent with GenAI skills: EY

As many as 84 per cent of Indian chief executive officers (CEOs) are raising new capital or re-allocating from other budgets to fund generative artificial intelligence (GenAI) so that they have an edge against rivals, said a report on Thursday.

Worldwide, 70 per cent of CEOs believe that there is a need to act quickly on GenAI to avoid giving their competitors a strategic advantage.

In its 'EY CEO Outlook Pulse 2023', a quarterly survey of 50 Indian CEOs, the consultancy said that 86 per cent of such executives have either completed or are in the process of hiring new talent with GenAI skills. "Many are also establishing pilots and partnerships with multiple companies," it said.

"Embracing an AI-first approach, businesses must build a robust foundation, focusing on platforms, people, and processes. However, strategic policy initiatives are crucial, necessitating increased government involvement, infrastructure support, data accessibility, and responsible AI governance," said Mahesh Makhija, partner and national leader (Technology Consulting) at EY India. 
 

As many as 80 per cent of Indian CEOs said that uncertainty about regulations for AI makes it challenging to make investment decisions quickly. Globally, this percentage is 68 per cent.

As many as 62 per cent of CEOs said that the rapid progress of GenAI and the regulatory environment restrict their capital allocation decisions.

"In the current landscape, 50 per cent of organisations find themselves in the exploration or optimisation phase of AI implementation, lacking a definitive AI leadership structure," said the report.

Despite this, the report said that 82 per cent of Indian CEOs are confident GenAI will empower them to enhance their capabilities as effective leaders.