75% Indian CEOs push for faster implementation of GenAI governance: IBM study

At the same time, the study also noted a contrast in actual adoption of AI governance policies with only 42 percent Indian CEO respondents saying they have good generative AI governance in place today.

A study by the IBM Institute for Business Value found that Indian chief executives are facing workforce, culture and governance challenges as they act quickly to implement and scale generative artificial intelligence (AI) across their organisations.

The annual global study of 3,000 CEOs from over 30 countries and 26 industries reveals a high importance placed by Indian CEOs on AI governance, with 71 percent of those surveyed saying trusted AI is impossible without effective AI governance in organisations.

Substantiating it further, 75 percent Indian CEO respondents say governance for generative AI must be established as solutions are designed, rather than after they are deployed.

At the same time, the study also noted a contrast in actual adoption of AI governance policies with only 42 percent Indian CEO respondents saying they have good generative AI governance in place today. This maybe because people in the organisation aren’t sure of exactly what they’re being asked to do. In the survey, 75 percent of Indian CEO respondents say that inspiring their team with a common vision produces better outcomes than providing precise standards and targets. Yet 31 percent acknowledge that their employees don’t fully understand how strategic decisions impact them.

“As Indian CEOs navigate AI-led transformations within their organisations, they recognise the need for AI guardrails so that they derive real business value responsibly for growth and competitive success. However, our study reveals a gap between their intention and actual implementation. This scenario highlights the complexity of implementing AI governance, hence making a strong case for partnering with trusted experts to develop and execute effective practices and policies,” said Sandip Patel, managing director of IBM India and South Asia.

Cultural shift 

People and skills are at the heart of successful generative AI adoption as 71 percent of Indian CEOs surveyed say that succeeding with AI will depend more on people’s adoption than the technology itself.

Some 49 percent of Indian CEO respondents said they are hiring for Gen AI roles that didn’t exist last year. The CEOs surveyed from India said 34 percent of their workforce will require retraining and reskilling over the next three years – up from just 6 percent globally in 2021.

Indian CEOs recognise it takes a cultural shift to successfully scale AI, but face organisational collaboration and adoption challenges as 70 percent of Indian CEOs surveyed say their organisation's success is directly tied to the quality of collaboration between finance and technology, yet nearly half (48 percent) said competition among their C-Suite executives sometimes impedes collaboration.

Nearly half (48 percent) of those surveyed from India acknowledge that cultural change is more important to becoming a data-driven organisation than overcoming technical challenges. Around 58 percent of Indian CEO respondents say they are pushing their organization to adopt generative AI more quickly than some people are comfortable with.