A recent study highlights a significant gap between the perceived importance of AI governance among Indian CEOs and the actual implementation of effective policies.
The findings of the annual global study by the IBM Institute for Business Value, reveal that 71% of Indian CEOs emphasize the need for effective AI governance, and only 42% report having robust policies in place.
Around 75% of Indian CEOs who took part in the survey believe that governance should be established as AI solutions are designed, yet there is confusion among employees regarding their roles in AI governance.
As many as 75% of respondents highlight the importance of inspiring their teams with a common vision over setting precise standards, though 31% acknowledge a lack of understanding among employees about how strategic decisions impact them.
A total of 3,000 CEOs from over 30 countries and 26 industries were surveyed, 71% of Indian CEOs believe that trusted AI is impossible without effective governance. Despite this, only 42% of respondents claim to have good generative AI governance in place.
Additional insights
Success in generative AI adoption hinges more on people than technology, with 71% of Indian CEOs stating this view. Additionally, 49% are hiring for roles that did not exist last year.
CEOs project that 34% of their workforce will require retraining over the next three years, a significant increase from 6% globally in 2021.
Nearly half of the surveyed CEOs (48%) believe that cultural change is more critical than technical challenges for becoming a data-driven organisation. However, competition among C-Suite executives often hinders collaboration.
Around 58% of CEOs are pushing for faster AI adoption despite some discomfort among their teams.
Customer experience and product innovation are top priorities, with 59% willing to sacrifice operational efficiency for innovation. Regulatory constraints, however, remain a significant barrier, cited by 48% of respondents.
Only 32% of CEOs are using net new IT spend to fund AI investments, while the majority (68%) are reallocating existing technology budgets.
The study underscores the need for a strategic approach to AI governance and the importance of addressing cultural and workforce challenges to harness the full potential of AI in Indian organizations.
Sandip Patel, Managing Director of IBM India & South Asia, noted the complexity of implementing AI governance and stressed the importance of partnering with trusted experts to develop and execute effective practices. “Our study reveals a gap between intention and implementation, highlighting the need for AI guardrails to derive real business value responsibly,” Patel said.