Even as industries scramble to find their groove in the ongoing AI wave, many leaders feel there is a greater need for AI governance as they adopt generative AI. A new IBM study of Indian CEOs found they face workforce, culture, and governance challenges in generative AI implementation. According to the study, 71 per cent Indian CEOs say trusted AI is not possible without effective AI governance in place. Similarly, 75 per cent Indian CEOs said the governance of generative AI should be established along with solutions or tools, and not after these solutions are implemented. “As Indian CEOs navigate AI-led transformations within their organisations, they recognize 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,” Sandip Patel, managing director, IBM India & South Asia. The annual global study by IBM, involving over 3,000 CEOs from across 30 countries and 26 industries, highlights the increasing focus of Indian CEOs on AI governance. However, only 42 per cent of them currently report having good generative AI governance in place, possibly due to organisational uncertainty of expectations. At the same time, the survey also stated that 75 per cent Indian CEOs said that inspiring their team with a common vision produces better outcomes than offering precise standards and targets. However, 31 per cent acknowledged that their employees do not fully understand how strategic decisions impact them. Generative AI, Jobs, and adoption The report highlights the critical role of people and skills in the successful adoption of generative AI. According to the findings, 71 per cent of Indian CEOs feel that the success with AI will depend a lot more on people’s adoption than the technology itself. Nearly half, 49 per cent, said they are hiring for Gen AI roles that did not exist in 2023, while 34 per cent said that their workforce will require retaining and reskilling over the next three years. As per the report, Indian CEOs recognise the need for a cultural shift to scale AI effectively but face challenges in organisational collaboration and adoption. The report reveals that 70 per cent of CEOs believe their company's success is directly linked to the quality of collaboration between finance and technology, and about half of these CEOs admit that often competition among their C-Suite executives becomes an impediment to collaboration. In terms of adoption speed, 58 per cent of Indian CEOs are pushing for faster Gen AI adoption than some staff are comfortable with. Regarding investment, approximately 32 per cent are funding their generative AI initiatives primarily through new IT spending, while the remaining 68 per cent are reallocating funds from other technology areas.
