Indian CEOs Embrace AI and Sustainability Amidst Economic Optimism: PwC Survey Reveals

Nearly 9 out of 10 India CEOs are planning headcount increases: PwC Survey

PwC's survey reveals 87% of India CEOs are optimistic about economic growth, exceeding the global 57%. However, they face challenges like technological disruption, inflation, and skilled labor shortage. GenAI potential and climate-friendly investments are pivotal, prompting increased hiring and innovation among Indian businesses.Around 87% of India CEOs are upbeat about the country's economic growth, surpassing the global average of 57%, while 74% are very confident about their respective companies' revenue growth in the next three years, according to PwC's 28 Annual Global CEO Survey. However, this confidence is tempered by certain challenges. Of these, technological disruption remains top of mind for India CEOs, followed by macroeconomic volatility and inflation, and low availability of skilled labour. Disruptive technology was also listed by India CEOs as one of the top two factors influencing their company's low economic viability. The survey polled more than 4,700 CEOs across 109 countries, of which more than 75 were from India, From a macro perspective, India's robust economic growth, improved ease of doing business (EoDB), infrastructural developments, and its young and skilled workforce continue to attract investors. Sanjeev Krishan, Chairperson, PwC in India, said in a statement: "For CEOs today, the challenge is to envision the ecosystem in which their company will operate in the future. This includes thinking through the impacts of megatrends like climate change and AI, evolving customer needs, shifting value pools, and the roles that their company will play." Businesses across the world have witnessed efficiency gains and increased revenue with GenAI in the last 12 months. In India too, while 51% of India CEOs are positive about GenAI's impact on profitability, trust remains an issue, with only a third of India CEOs having high trust in AI's integration into business processes. Expectations for higher revenue growth are in turn prompting companies to increase hiring, with 68% of India CEOs planning to hire more staff, compared to 57% last year. Globally, 42% of CEOs will increase headcount in the next 12 months, and this is perhaps more on account of, rather than in spite of, AI. "It's clear from our survey that GenAI is not just a technological evolution but a strategic revolution, reshaping the landscape of global business. India CEOs should embrace GenAI's potential while also taking steps to manage risks. Responsible AI practices can mitigate many issues and are most effective when baked into GenAI strategy from the start," added Krishan. Since 2019, the needle has moved considerably as organisations in India are now making investments to address climate change. The survey finds that more than one-third of India CEOs noted revenue increases from climate-friendly investments over the past five years. In addition, more than 60% said these investments had either reduced cost or had no significant cost impact. More than half of global CEOs (56%) polled said their personal incentive compensation was linked to sustainability metrics. In India, the percentage of CEOs who said that a certain proportion of their personal incentive was determined by sustainability metrics was slightly higher at 58%. The higher the percentage of CEO compensation at stake, the higher is the revenue likely to be generated from climate-friendly investments. Many companies, however, are yet to convert climate-friendly investments - which include transitioning to energy-efficient operations, developing greener products and services, and implementing emission-reducing technologies - into additional revenues. For more than 40% of India CEOs, product and service innovation is the most common reinvention action in the last five years. Four in ten CEOs in India and across the world say their companies have started to compete in at least one new sector/industry in the last five years.

Nearly 9 out of 10 India CEOs confident of economic growth as they plan headcount increases and continued AI rollout: PwC

A new survey by PwC reveals that nearly 9 out of 10 CEOs in India remain confident in the country's economic growth, with a strong focus on expansion plans, including headcount increases and the continued rollout of Artificial Intelligence (AI) technologies. As global leaders convene in Davos under the theme of "Collaboration in the Intelligent Age," PwC's 28th Annual Global CEO Survey - India Perspective highlights the significant role India is poised to play in driving global innovation, sustainability, and economic growth. According to PwC, the survey, which polled over 4,700 CEOs across 109 countries, including 75 from India, shows that 87% of Indian CEOs are optimistic about the country's economic prospects, far surpassing the global average of 57%. Additionally, 74% of Indian CEOs express strong confidence in their companies' revenue growth over the next three years, buoyed by the country's economic resilience, improved ease of doing business (EoDB), infrastructure developments, and a young, skilled workforce. Despite this optimism, the survey points to challenges that remain on the horizon. Technological disruption is the top concern for Indian CEOs, followed by macroeconomic volatility, inflation, and the availability of skilled labour. Disruptive technologies, including AI, were also identified as a major factor affecting economic viability for many companies in India. Sanjeev Krishan, Chairperson, PwC in India, said, "For CEOs today, the challenge is to envision the ecosystem in which their company will operate in the future. This includes thinking through the impacts of megatrends like climate change and AI, evolving customer needs, shifting value pools, and the roles that their company will play." AI, particularly Generative AI (GenAI), has emerged as a key area of focus for business leaders globally. In India, 51% of CEOs are optimistic about GenAI's potential to enhance profitability, but trust remains a significant hurdle. Only a third of Indian CEOs have high confidence in AI's seamless integration into business operations. Despite these reservations, the potential for AI to drive efficiency and growth is evident, with 68% of India CEOs planning to increase their workforce, up from 57% the previous year. Krishan further elaborated, "India CEOs should embrace GenAI's potential while also taking steps to manage risks. Responsible AI practices can mitigate many issues and are most effective when baked into GenAI strategy from the start." India is increasingly recognizing the importance of climate-conscious business strategies. More than one-third of Indian CEOs reported revenue growth from climate-friendly investments over the past five years, underscoring a shift in corporate priorities. Additionally, over 60% of these CEOs noted that such investments either reduced costs or had no significant cost impact. Sustainability metrics also play a role in executive compensation, with 58% of Indian CEOs stating that part of their personal incentives is linked to sustainability performance, slightly above the global average of 56%. This financial alignment with sustainability is a testament to the growing importance of climate-focused investments in driving long-term profitability. While not all climate-friendly initiatives have resulted in direct revenue growth, the survey suggests that companies are increasingly embedding sustainability into their business models, not just as a stakeholder responsibility but as a driver of future investments and profitability. As macroeconomic and geopolitical shifts continue to shape the global business landscape, the need for reinvention is more pressing than ever. PwC's survey found that 40% of CEOs in India and around the world have ventured into new sectors or industries over the past five years. This trend indicates that diversification is becoming a key strategy for growth. For Indian CEOs, product and service innovation remains the most common reinvention action, with 40% of CEOs focusing on developing new products and services, and targeting direct-to-consumer routes. Additionally, 38% of Indian CEOs have worked on acquiring new customer bases, while 26% have sought collaborations with other organizations to foster growth.