90% Indian business leaders to boost AI, GenAI investments

Business leaders are increasingly recognising the value of artificial intelligence (AI) and generative AI, with 90 per cent of Indian business leaders planning increased investment in these technologies in the next 12-18 months. This is according to Capgemini’s latest report on 2024 investment priorities. Of these leaders, 58 per cent view generative AI as an opportunity to boost revenue and innovation.

Capgemini’s survey included business leaders from 2,000 organisations in 15 countries, including India, across sectors such as automotive, consumer products, banking, capital markets, life sciences, telecom, media, high-tech, manufacturing, and energy.

In India, 53 per cent of business leaders are optimistic about their organisation’s outlook. Comparatively, globally, 56 per cent of leaders are shifting towards optimism about their organisations’ future.

In 2024, 82 per cent of Indian business leaders plan to increase their investment in digital tools and technologies. Among them, 90 per cent intend to invest more in AI and generative AI, 92 per cent in cloud technologies, 73 per cent in cybersecurity, and 71 per cent in digital twins and immersive technologies for industrial applications.

The surveyed Indian business leaders also plan to boost investments in customer experience (67 per cent increase), engineering/R&D/product or service innovation (61 per cent increase), talent and skills (53 per cent increase), and sustainability (51 per cent increase).

Half of the Indian leaders surveyed believe cybersecurity is a top risk to business growth, compared to 61 per cent of global leaders.

Globally, business leaders anticipate AI playing a significant role in critical decision-making, with life sciences and healthcare leading. In India, 28 per cent of respondents expect AI to be used in critical decision-making in five years, while 17 per cent reported its current use in their organisations.

In terms of future operational disruptions, 37 per cent of Indian business leaders and 48 per cent of global leaders see climate change as the main cause. In India, 47 per cent believe liquidity and financial health are at risk, and 33 per cent feel brand reputation is more vulnerable.

The technology decoupling between China and the US, particularly in semiconductors and AI, has prompted 42 per cent of surveyed Indian executives to reassess their technology investments. Additionally, 41 per cent of Indian business leaders are investing in other emerging economies to reduce reliance on China. Business Standard