A recent study revealed that Indian CEOs are facing big challenges in implementing effective governance for artificial intelligence (AI) within their organisations.
According to the findings from the study, 71 per cent of Indian CEOs believe that trusted AI is impossible without effective governance frameworks. However, the reality contrasts sharply with only 42 per cent of CEOs stating that their organisations currently have robust governance policies in place specifically tailored for generative AI technologies. This gap points to a disconnect between intentions and actual implementation on the ground.
The IBM study identified several hurdles hindering the adoption of AI governance. Among them are workforce readiness issues and cultural challenges within organisations. A significant 75 per cent of CEOs admit that employees often do not fully comprehend how strategic AI decisions impact their roles and the organisation at large, necessitating clearer communication and alignment strategies.
In response to the transformative potential of AI, Indian CEOs are actively prioritising people and skills development. About 49 per cent of CEOs are hiring for roles related to generative AI that did not exist a year ago. Additionally, about 34 per cent of the workforce is slated for retraining and reskilling over the next three years, marking a concerted effort to bridge the skills gap.
Despite recognising the importance of collaboration between finance and technology functions for AI success (70 per cent), CEOs acknowledged internal competition among C-suite executives as a barrier to effective teamwork. Moreover, while customer experience and innovation remain top priorities, regulatory constraints emerge as a significant obstacle for 48 per cent of CEOs, potentially stalling long-term progress in AI adoption.
Financially, only 32 per cent of CEOs in India are primarily funding their AI investments through net new IT spending, with the majority opting to reduce other technology budgets instead. This cautious approach shows a balancing act between innovation ambitions and operational realities in a rapidly evolving technological landscape.
In a statement, Sandip Patel, Managing Director, IBM India & South Asia said, “As Indian CEOs navigate AI-led transformations within their organizations, 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.”
