According to the latest CEO study by IBM’s Institute for Business Value, Indian business leaders are significantly increasing their investments in artificial intelligence (AI) and generative AI. However, while adoption is accelerating, a disconnect remains between innovation ambition and measurable returns. Only 25% of surveyed CEOs report seeing expected ROI from AI projects, and just 15% have successfully scaled AI across the enterprise.
The report shows that 51% of Indian CEOs are currently deploying AI agents, and 64% believe generative AI delivers value beyond cost savings. Yet, over 74% are calling for greater budget flexibility to sustain long-term innovation, pointing to tensions between maintaining current operations and funding forward-looking AI initiatives.
Data architecture and talent emerge as strategic roadblocks
The study finds that 58% of CEOs view enterprise-wide data architecture as critical to enabling AI integration across business units, but many still operate with fragmented systems. Over half of the respondents admit their recent technology investments have led to disconnected digital infrastructure, slowing AI maturity.
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A strong link was also found between strategic leadership and AI success. 67% of CEOs attribute progress to leaders empowered with deep insight and fast decision-making, while 54% are hiring for new AI-specific roles created in the past year. Automation is also being used by 68% of organisations to close talent gaps.
AI optimism holds, but execution must improve
Despite structural challenges, 84% of Indian CEOs expect positive ROI from scaled AI efficiency by 2027, and 78% see potential for AI-driven revenue growth. However, many say clearer metrics and outcome-based planning are essential to convert experimentation into impact.
IBM India & South Asia Managing Director Sandip Patel said the focus is no longer on whether to adopt AI, but on where it delivers the most competitive advantage. As the race to scale AI continues, the report makes clear that data strategy, budget agility, and leadership alignment will define long-term winners.
