Indian Enterprises Bet Big on AI Leadership: 67% to Appoint CAIOs Within 2 Years, Finds IBM Study

KOCHI:
Indian enterprises are building strong momentum in AI leadership, with Chief AI Officers (CAIOs) emerging as a key driver of strategy and execution, according to a new study by the IBM Institute for Business Value. With CAIOs taking a strategic seat at the leadership table, Indian enterprises are combining technical depth with executive expertise to accelerate AI adoption.

The study finds that 77% of CAIOs in India report strong C-suite support (including 67% reporting CEO support), reflecting strong organizational alignment to scale AI effectively. Furthermore, while 25% of Indian enterprises surveyed currently have a CAIO, 67% of them aim to have one within the next two years, demonstrating India’s growing appetite for aligning a leader to direct AI strategy that drives measurable outcomes.

This momentum is backed by impact, as globally organizations with a CAIO see a 10% higher return on investment (ROI) on AI spend, underscoring the value of strong AI leadership and strategic alignment in driving business results.

“As Indian enterprises move from pilots to scaled AI adoption, the role of the CAIOs will be central to their AI transformation journeys. CAIOs will not only bridge the gap between business and technology but also set the strategic direction and keep teams aligned on shared goals,” said Viswanath Ramaswamy, Vice President, Technology, IBM India & South Asia. “To succeed, CAIOs must develop a clear transformation roadmap with measurable KPIs, foster alignment with the C-suite on business priorities and focus on initiatives that deliver a sustainable and competitive edge.”

Other key findings for India include:
Strong C-Suite Support for AI Leadership in India

• 80% CAIOs are consulted by other CXOs on important AI decisions.
• 57% of Indian CAIOs were appointed internally, highlighting the development of AI leadership talent from within enterprises.
• 60% of CAIOs report directly to either the CEO or the Board of Directors.

Broader mandates and Implementation Focus
Indian CAIOs are taking on comprehensive responsibilities spanning strategy, directing technical implementation, managing budgets and upskilling talent.

• The study found that the top three responsibilities of Indian CAIOs were, defining the organization’s AI strategy (70%), developing change management strategy for AI adoption (57%), and directing implementation of AI (57%). These figures are, on average, 10 percentage points higher than global respondents, suggesting that Indian CAIOs place greater emphasis on these areas and are scaling AI more rapidly than their global peers.
• Interestingly, many CAIOs are also overseeing upskilling (43%) and reskilling (37%) of employees in AI.
• 60% stated that their AI budget is controlled by the CAIO, strengthening accountability.
  Technical Depth as a Competitive Edge
• 70% of Indian CAIOs have a background in data, aligned with global counterparts.
• 73% come from technology roles while 50% have an innovation background, reinforcing their ability to lead transformation agendas.
  Adoption: From Pilots to Scale
• While 67% of Indian organizations are still primarily investing in AI pilots, the combination of strong leadership support and CAIOs’ strategic orientation will provide a strong foundation for accelerating scaled AI adoption.
• Only 18% of Indian CAIOs find AI implementation very difficult (versus 30% globally), reflecting a more optimistic execution environment.