About 70 percent of Indian Chief Executive Officers (CEOs) are channeling their investments into technology, including artificial intelligence (AI), to enhance productivity over the next 12 months, according to a survey by EY.
The data relates to Indian CEOs, who are doubling down on technology transformation, which is much higher than their global counterparts at 47 percent.
The India-specific data from the "EY CEO Outlook Pulse Survey" shows that investments are high in AI despite global economic uncertainty and geopolitical tensions.
“It's important to note that fortifying data management and cybersecurity (56 percent) and pursuing cost optimization across business facets (50 percent) also stand out as critical strategic imperatives in the near term,” EY said in the report.
The survey also highlights that the acquisition of technology, new production capabilities, and innovative startups have emerged as the leading strategic driver for mergers and acquisition (M&A) activities.
As many as 80 percent of the CEOs surveyed express optimism regarding their companies' revenue prospects, while an even higher 88 percent are confident about profitability. This positive sentiment is mirrored in the M&A landscape, with a staggering 96 percent of respondents actively eyeing transactions in the coming year, predominantly through initial public offerings (IPOs).
"In M&A landscape, a higher percentage of CEOs and investors are seeming to be bullish, actively seeking deals, driven by tech acquisition, market expansion, consumer shifts, and supply chain security,” Amit Khandelwal, Managing Partner, Strategy and Transactions, EY India, was quoted as saying in the release.
The survey brings to light that the trend of sustainability is slipping down the priority list for almost 16 percent of CEOs, despite a majority of CEOs (60 percent) acknowledging the growing importance of sustainability compared to a year ago. This is because of financial constraints and a shift in boardroom focus.
EY says the survey indicates a stark dichotomy: while 44 percent strongly recognise the impact of sustainability issues on their supply chains, a comparable 40 percent acknowledge to 'Green hushing' - fearing being accused of 'Greenwashing'.
Additionally, 42 percent admit to challenges in articulating a compelling financial case for sustainability investments.
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