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Recognising generative AI’s potential to disrupt business models, 84 per cent of CEOs are accelerating generative AI investments to maintain competitive advantage, states the EY CEO Outlook Survey 2023.
According to a quarterly survey of 50 Indian CEOs, comprising a majority of mid- to large-sized publicly listed companies, 84 per cent of the survey respondents are raising new capital or re-allocating it from other investment projects or technology budgets.
However, more than half of the respondents (62 per cent) believe that the rapid pace of Gen AI progress and regulatory environment restrict their capital allocation decisions on Gen AI initiatives, and CEOs globally acknowledge the impact on the workforce as a key concern.
Further, over three-fourth (78 per cent) also believe a surge in companies claiming to have AI expertise complicates decisions about identifying and implementing credible ecosystem partnerships and acquisition targets.
“Embracing an AI-first approach, businesses must build a robust foundation, focusing on platforms, people, and processes. In addition, 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, EY India.
Data also reflects the difficulties and urgency that CEOs find themselves under when it comes to the emerging technology, with 84 per cent of Indian CEOs, compared to 70 per cent globally, seeing the need to act quickly on Gen AI to avoid giving their competitors a strategic advantage.
Meanwhile, 80 per cent state that the uncertainty around this space makes it challenging to act quickly, which is higher than their global counterparts (68 per cent).
CEOs and AI: A strong partnership ahead
In the current landscape, a significant 50 per cent of organisations find themselves in the exploration or optimisation phase of AI implementation, lacking a definitive AI leadership structure. Despite this, Indian CEOs (82 per cent) are more confident that the integration of Gen AI will empower them to enhance their capabilities as effective leaders than their global counterparts. This resounding belief reflects a widespread recognition of the transformative potential that GenAI holds for business leadership.
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