Indian CEOs are intensifying their investments in artificial intelligence (AI), signaling a decisive shift from experimentation to enterprise-scale execution, according to the latest IBM Institute for Business Value CEO Study. While enthusiasm for AI remains strong, the report reveals a growing tension between innovation ambitions and structural limitations such as budget constraints, fragmented technology landscapes, and talent shortages.
AI adoption accelerates, but ROI expectations remain elusive
Indian CEOs are embracing AI-driven transformation, with 51% already deploying AI agents and preparing for broader rollout. However, just 25% report expected ROI from AI projects so far, and a mere 15% have scaled them enterprise-wide. Despite this, the conviction remains: 64% say GenAI delivers value beyond cost reduction, and 66% confirm they now measure innovation ROI with clear metrics.
Data and architecture: the next competitive frontier
A robust data backbone is emerging as essential for AI to thrive. 58% of CEOs identify integrated, enterprise-wide data architecture as critical for cross-functional alignment, while 71% cite proprietary data as a key differentiator for generative AI applications. Yet, over half (53%) admit that recent tech investments have created disconnected, piecemeal systems, stalling AI maturity.
Strategic leadership and talent: a growth imperative
The study underscores the growing link between strategic leadership, talent acquisition, and innovation outcomes. 67% of CEOs associate success with leadership equipped with deep strategic insight and empowered decision-making authority. Meanwhile, 54% are hiring for AI-specific roles that didn’t exist just a year ago, and 68% plan to leverage automation to bridge skill gaps.
Budget rigidity threatens momentum
While AI is firmly on the agenda, 74% of CEOs stress the need for greater budget flexibility to pursue digital growth. Nearly half (44%) say their organizations struggle to balance day-to-day operations with funding future-forward innovation—especially during periods of uncertainty.
A call for purpose-driven AI investments
Despite the current friction points, Indian CEOs remain optimistic. 84% expect positive ROI from scaled AI efficiency and 78% from AI-led growth by 2027. As Sandip Patel, Managing Director, IBM India & South Asia, noted, “It’s no longer about whether to adopt AI, but where it will deliver the strongest competitive edge. Disruption must be seen as opportunity.”
