CEOs Investing Heavily in AI to Boost Business Growth
Published Date: 20/06/2024
Indian CEOs are betting big on Artificial Intelligence to drive growth and productivity, with 70% planning to increase tech investments in the next 12 months.
The Indian corporate landscape is witnessing a significant shift towards technology, with a majority of CEOs planning to invest heavily in Artificial Intelligence (AI) to improve growth and enhance productivity over the next 12 months. According to a report by consultancy EY, 70% of CEOs surveyed are committed to increasing tech investments, significantly higher than their global counterparts at 47%.
This commitment to tech investments is not just a response to the present but a strategic leap towards the future. The survey underscores this momentum, revealing that a substantial majority of CEOs are actively aligning their organisations with an AI-centric blueprint for innovation and productivity. Mahesh Makhija, EY India Technology Consulting Leader, noted that CEOs must navigate this landscape with a dual focusaccelerating growth through high-value tech investments and simultaneously fortifying data with integrity and cybersecurity.
The report also revealed that 80% of the CEOs surveyed were optimistic regarding their companies' revenue prospects, with an even higher 88% confident about profitability. This sentiment was also visible in the mergers and acquisitions (M&A) landscape, with 96% of respondents actively eyeing transactions in the coming year, predominantly through initial public offerings (IPOs).
The CEOs said that the top strategic drivers for pursuing acquisitions were acquiring technology, new production capabilities or innovative startups (44%), growing market share (36%), reacting to changing customer behaviour (32%), and securing supply chains (32%). However, the importance of sustainability had slipped down in the priority list of CEOs, overshadowed by financial constraints and a shift in boardroom focus.
Amit Khandelwal, managing partner, strategy and transactions, EY India, noted that in the M&A landscape, a higher percentage of CEOs and investors are seeming to be bullish, actively seeking deals, driven by tech acquisition, market expansion, consumer shifts, and supply chain security.
EY (Ernst & Young) is a multinational professional services firm that provides assurance, tax, consulting, and financial advisory services to clients across the globe.
FAQs:
Q: What percentage of Indian CEOs are planning to increase tech investments in the next 12 months?
A: 70%
Q: What is the primary driver for CEOs to pursue acquisitions?
A: Acquiring technology, new production capabilities or innovative startups (44%)
Q: How many CEOs surveyed were optimistic about their companies' revenue prospects?
A: 80%
Q: What percentage of CEOs acknowledged 'Green hushing'fearing being accused of 'Greenwashing'?
A: 40%
Q: What is the percentage of CEOs confident about profitability?
A: 88%