Indian CEOs Say No Effective AI without Effective Governance: IBM Study
Bengaluru: A new study by the IBM (NYSE: IBM) Institute for Business Value found that surveyed Indian CEOs are facing workforce, culture and governance challenges as they act quickly to implement and scale generative AI across their organizations.
The annual global study of 3,000 CEOs from over 30 countries and 26 industries reveals a high importance placed by Indian CEOs on AI governance, with 71 per cent of those surveyed saying trusted AI is impossible without effective AI governance in organizations.
Substantiating it further, 75 per cent Indian CEO respondents say governance for generative AI must be established as solutions are designed, rather than after they are deployed. At the same time, the study also noted a contrast in actual adoption of AI governance policies with only 42 per cent Indian CEO respondents saying they have good generative AI governance in place today.
This maybe because people in the organization aren’t sure of exactly what they’re being asked to do. In the survey, 75 per cent of Indian CEO respondents say that inspiring their team with a common vision produces better outcomes than providing precise standards and targets.
Yet, 31 per cent acknowledge that their employees don’t fully understand how strategic decisions impact them. Sandip Patel, Managing Director, IBM India & South Asia said, “As Indian CEOs navigate AI-led transformations within their organizations, they recognize the need for AI guardrails so that they derive real business value responsibly for growth and competitive success. However, our study reveals a gap between their intention and actual implementation. This scenario highlights the complexity of implementing AI governance, hence making a strong case for partnering with trusted experts to develop and execute effective practices and policies."
The other key study findings include - people and skills are at the heart of successful generative AI adoption, 71 per cent of Indian CEOs surveyed say that succeeding with AI will depend more on people’s adoption than the technology itself and 49 per cent of Indian CEO respondents says they are hiring for Gen AI roles that didn’t exist last year.
CEOs surveyed from India say 34 per cent of their workforce will require retraining and reskilling over the next three years – up from just 6 per cent globally in 2021.
