Indian CEOs are directing investments towards technology, particularly Artificial Intelligence (AI), to boost growth and productivity in the coming year, according to a report released on Thursday. As per the EY's CEO Outlook Pulse Survey 2024, which surveyed 100 CEOs, this commitment surpasses the global average of 47 per cent.
"Commitment to tech investments is not just a response to the present but a strategic leap towards the future. The survey underscores this momentum, revealing that a substantial majority of CEOs are actively aligning their organisations with an AI-centric blueprint for innovation and productivity," said Mahesh Makhija, EY India Technology Consulting Leader.
Makhija emphasised that CEOs need to navigate this terrain by prioritising two key objectives: accelerating growth through strategic investments in high-value technology and ensuring robust data integrity and cybersecurity measures.
The report highlighted that 80 per cent of surveyed CEOs expressed optimism regarding their companies' revenue prospects, while an even greater 88 per cent were confident in achieving profitability. This positive outlook extended to the mergers and acquisitions (M&A) arena, with 96 per cent of respondents actively considering transactions in the upcoming year, primarily focusing on initial public offerings (IPOs).
Speaking on the report findings, Amit Khandelwal, managing partner, strategy and transactions, EY India, said, "In the M&A landscape, a higher percentage of CEOs and investors are seeming to be bullish, actively seeking deals, driven by tech acquisition, market expansion, consumer shifts, and supply chain security.”
CEOs identified key strategic motivations for pursuing acquisitions, including acquiring technology, new production capabilities, or innovative startups (44 per cent), expanding market share (36 per cent), responding to evolving customer behaviour (32 per cent), and securing supply chains (32 per cent).
However, the survey noted a decline in CEOs' priority for sustainability, overshadowed by financial constraints and a shift in boardroom focus. 42 per cent of CEOs cited challenges in presenting a compelling financial case for sustainability investments. While 44 per cent firmly acknowledged the impact of sustainability issues on their supply chains, 40 per cent expressed concern about "Green hushing"—the fear of being accused of "Greenwashing".