Three-fourths of Indian enterprises to increase Gen AI investments this year

Indian businesses are gearing up to invest more in Generative Artificial Intelligence (Gen AI), with a strong 76% planning to increase their investments in the technology, reveals a new study conducted by the IBM Institute for Business Value (IBV). Titled "Beyond checking the box," the study emphasizes the imperative for businesses to integrate sustainability into their core operations for long-term value creation.

Key findings of the study indicate that Indian enterprises embracing sustainability witness a remarkable 41% increase in revenue attributed to sustainability efforts, along with a staggering 90% outperformance in profitability compared to their peers. Despite this, the study highlights a noteworthy 38% disparity between spending on sustainability reporting and innovation in India, indicating a growing demand for solutions facilitating efficient data management and reporting.

Sandip Patel, Managing Director of IBM India Private Limited, emphasized the evolving significance of sustainability in today's business landscape, asserting that integrating sustainability into core practices adds substantial long-term value, particularly with AI reshaping industries. Patel commended businesses' commitment to investing in Gen AI for sustainability, signalling a promising transition towards a greener, more prosperous future.

The study's highlights from India further underscore the ongoing pursuit of sustainability among organizations, with 78% of executives acknowledging its positive impact on business results and 68% integrating sustainability into their core business strategy. Despite these strides, challenges such as funding, skill shortages, and operationalization persist, with 62% of respondents stressing the need for higher prioritization of sustainability within their organizations.

Leadership in India anticipates that Gen AI will play a pivotal role in supercharging sustainability efforts, with 76% expressing intentions to increase investments in this technology. However, only 28% of executives are currently incorporating sustainability data into operational improvements to a significant extent, indicating room for growth in leveraging AI for sustainability initiatives.

Meanwhile, a separate study conducted by Canva reveals that chief innovation officers recognize the potential of AI to dramatically improve employee experiences, with over 93% planning to increase their AI investments. However, challenges such as access to IT talent and data security remain significant hurdles to integration.

In another development, a report by EY India underscores Gen AI's potential to significantly enhance India's financial services sector, potentially contributing $66-$80 billion to the Gross Value Added (GVA) by 2030. The report highlights Gen AI's anticipated impact on customer service enhancement and cost reduction within the sector.

Furthermore, a report by Amazon Web Services (AWS) suggests that India's AI workforce could witness salary increases exceeding 54%, particularly in the IT and research and development sectors. The report indicates widespread optimism among Indian workers regarding the positive impact of AI skills on career advancement, with a strong interest in AI upskilling courses spanning across generations, including baby boomers.