TLDR: Indian CEOs are demonstrating a strong commitment to Agentic AI, with over half actively adopting the technology. Despite a global IBM study revealing that many AI initiatives are yet to deliver expected returns, Indian leaders anticipate significant positive ROI from scaled AI investments by 2027.
A recent global study by the IBM Institute for Business Value indicates that Indian CEOs are at the forefront of AI adoption, particularly with Agentic AI, even as they navigate challenges in realizing immediate returns on investment. While an initial report suggested Indian CEOs are observing a 12% higher return on Agentic AI compared to the global average, the broader findings from the IBM study reveal a more nuanced picture regarding AI initiative profitability.
According to the annual IBM CEO study, which surveyed 2,000 CEOs globally, including a significant cohort from India, a remarkable 51% of Indian CEOs are actively adopting AI agents today and are preparing for large-scale implementation . This proactive stance positions India as a key player in the global AI transformation. Sandip Patel, Managing Director, IBM India & South Asia, emphasized this trend, stating, “Indian CEOs are at the forefront of a massive transformation fuelled by technological advancements like generative AI and Agentic AI. It is no longer if they should adopt AI but where it can deliver the strongest competitive edge, and accelerated growth.” He added that IBM is committed to helping Indian enterprises scale AI responsibly for long-term growth .
Despite this enthusiasm and high adoption rate, the study highlights that only 25% of AI initiatives have delivered the expected Return on Investment (ROI) over the last few years, and a mere 15% have scaled enterprise-wide . This indicates a gap between investment and tangible outcomes in the short term. However, Indian CEOs remain committed, with 62% leaning into AI use cases based on potential ROI, and 66% reporting clear metrics to measure innovation ROI effectively . Furthermore, 64% of surveyed CEOs are already realizing value from generative AI investments beyond just cost reduction .
Looking ahead, the optimism remains high. By 2027, 84% of surveyed Indian CEOs expect their investments in scaled AI efficiency and cost savings to yield a positive ROI, while 78% anticipate a positive return from investments in scaled AI growth and expansion .
Key challenges identified by the study include the need for greater budget flexibility to capitalize on digital opportunities (74% of CEOs agree), and a lack of expertise and knowledge as a top barrier to innovation . The research also points out that 53% of respondents acknowledge that the rapid pace of recent investments has led to disconnected, piecemeal technology environments, underscoring the need for integrated enterprise-wide data architecture, which 58% of Indian CEOs identify as critical for cross-functional collaboration . Additionally, 71% view their organization’s proprietary data as key to unlocking the full value of generative AI .
Also Read:
- Generative AI Propels India’s Next Wave of Application Modernization and Digital Transformation
- Agentic AI Adoption Reaches One-Third Amidst Significant Integration and Governance Hurdles
This comprehensive outlook suggests that while the journey to maximizing AI’s potential in India faces hurdles, the strategic intent and long-term vision of its business leaders are firmly set on leveraging Agentic AI for future growth and competitive advantage.
