At least 84% of Indian chief executive officers (CEOs) are raising new capital or reallocating budgets to invest in generative artificial intelligence (gen AI), compared to 70% globally, says a new report.
As per the EY CEO Outlook Pulse 2023 survey of 50 Indian CEOs, this strategic move is aimed at gaining a competitive advantage over their rivals.
However, 80% of Indian firms also admit to the uncertainties associated with GenAI, posing challenges in rapidly devising and executing an AI strategy. Globally, this is 68%.
In the present scenario, 50% of organisations are either exploring or optimising AI implementation, facing a lack of a clear AI leadership structure.
Nevertheless, Indian CEOs (82%) express greater confidence than their global counterparts in believing that the incorporation of gen AI will enable them to enhance their leadership capabilities.
“Embracing an AI-first approach, businesses must build a robust foundation, focusing on platforms, people, and processes. However, 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) at EY India.
In its ‘EY CEO Outlook Pulse 2023’, a quarterly survey of 50 Indian CEOs, EY said approximately 10% of CEOs affirm that GenAI is presently reshaping their business and operating models, demonstrating its immediate impact on organisations.
Additionally, a substantial 38% of CEOs expect to observe the influence of GenAI on their businesses within a relatively short timeframe of 1-2 years, including areas such as revenue growth and overall business operations.
Around 38% of respondents anticipate that the impact of GenAI on internal functions, research and development, and innovation will become evident within a somewhat longer timeframe of 3-5 years.
With the adoption of GenAI, the Indian government has started the process of preparing regulations for AI, said IT Secretary S Krishnan. “The government is already engaged in working on AI data and regulation. There are ongoing discussions within the government about AI data and its regulation,” he said.
With AI taking centre stage globally, the government is increasing its focus on the segment. Recently, Minister of State (MoS) for Information Technology Rajeev Chandrasekhar said that the centre is planning to fund and support AI startups in the country.
As per Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 Mn between 2019 and Q3 2023. The homegrown GenAI market is expected to grow to a market size of $17 Bn by 2030 from $1.1 Bn in 2023.
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