Artificial Intelligence (AI) is no longer just a buzzword for corporate India—it’s the top investment priority for a majority of the country’s chief executive officers. According to the KPMG 2025 India CEO Outlook report, a striking 57 percent of Indian CEOs are planning to allocate between 10 and 20 percent of their budgets to AI initiatives over the next year. This trend isn’t confined to India alone: globally, 69 percent of CEOs are making similar plans, highlighting a worldwide race toward AI integration.
The KPMG report, which surveyed 1,350 CEOs around the globe—including 125 heads of Indian companies from a wide array of industries—paints a picture of a business world on the brink of transformation. It’s not just about pouring money into new technology: 73 percent of these leaders expect to see tangible returns on their AI investments within one to three years. There’s a sense of urgency, but also optimism, as 86 percent believe their boards are well-equipped to steer the company through the complexities of advanced technology adoption, leveraging both AI and data for sustainable growth.
Indian CEOs, in particular, are showing a level of confidence that outpaces their global peers. Despite global headwinds—think tariffs, visa restrictions, and the lingering aftereffects of the pandemic—83 percent of Indian CEOs express confidence in their companies’ growth prospects for 2025. That’s a significant jump from 68 percent in 2024. Meanwhile, global CEO confidence has also ticked up, rising from 76 percent to 79 percent over the same period.
Technology integration, especially AI, is now shaping short-term decision-making in boardrooms across India. CEOs are identifying three factors as especially influential for growth over the next three years: cyber risks, workforce readiness, and the successful integration of AI. The report notes that nearly 75 percent of Indian CEOs see cybercrime as a direct threat to their organizations’ prosperity. In response, 42 percent have upped their investments in cybersecurity—a clear sign that as companies embrace new technologies, they’re also beefing up their digital defenses.
But it’s not just about technology and security. The human element remains front and center. On the talent front, the numbers are telling: 91 percent of Indian CEOs emphasize investment in skill development and lifelong learning, with 74 percent underscoring the critical importance of AI workforce readiness for organizational prosperity. Yet, the race for talent is fierce. Sixty-eight percent of Indian CEOs (compared to 70 percent globally) worry that competition for AI-savvy employees could constrain their future growth. And it’s not just about technical chops—26 percent say it’s tough to find candidates who possess both the technical skills and the collaborative mindset needed for successful AI implementation.
Perhaps more sobering is the acknowledgment that AI integration could lead to workforce reductions. Around half of Indian CEOs are considering trimming their staff in certain areas as AI becomes more embedded in their operations, according to the KPMG report. This isn’t a decision taken lightly, but rather a reflection of the shifting demands of a rapidly digitizing economy.
Still, many CEOs see AI as more than just a tool for efficiency or cost-cutting. There’s a growing recognition of its potential as an enabler for sustainability and Environmental, Social, and Governance (ESG) goals. Seventy-seven percent of Indian CEOs consider AI instrumental in reducing emissions and enhancing energy efficiency. Seventy-five percent say it enhances data quality and reporting, while 72 percent believe it improves resource efficiency. These numbers align closely with global sentiments, where 78 percent of CEOs see AI as a vital part of their sustainability toolkit.
Supporting these findings, Cisco’s AI Readiness Index—released on Wednesday, October 15, 2025—echoes the centrality of AI in the Indian business landscape. According to Cisco, 91 percent of organizations in India plan to deploy AI agents, with nearly 41 percent expecting these agents to work alongside employees within just a year. The rapid pace of adoption underscores both the opportunities and the challenges that lie ahead.
“Seventy-eight percent of CEOs in India and 79 percent globally cite that their leadership has a clear view on how AI will disrupt their business models and create new opportunities,” the KPMG report adds. This clarity of vision is fueling a wave of innovation and experimentation, as companies look to harness AI not only to streamline operations but also to unlock entirely new revenue streams and business models.
Yet, with all this optimism comes a healthy dose of pragmatism. CEOs are acutely aware of the risks—be it cyber threats, talent shortages, or the complexities of integrating new technologies into legacy systems. As a result, the focus is shifting toward resilience and adaptability. “In an era of global uncertainty, CEOs in India are demonstrating remarkable resilience and a future-focused mindset. By embracing emerging technologies like AI, prioritising cybersecurity, and advancing ESG goals, they are confident of navigating complexity,” said Yezdi Nagporewalla, chief executive officer of KPMG in India. He went on to highlight the importance of a renewed focus on talent strategy, role redesign, embedding innovation, and fostering continuous learning as key ingredients for staying competitive in an ever-changing landscape.
The emphasis on continuous learning and upskilling isn’t just a talking point—it’s a strategic imperative. As AI becomes more deeply woven into the fabric of business, organizations are rethinking roles, redesigning workflows, and investing in training programs to ensure their employees are ready for what’s next. It’s a delicate balancing act: harnessing the efficiency and potential of AI while supporting employees through the transition.
And while the numbers tell a story of rapid adoption and bullish confidence, they also hint at the challenges ahead. The competition for AI talent is fierce, and finding the right people—those who can not only code but also collaborate, innovate, and drive change—isn’t easy. Companies are responding by doubling down on training, but also by reimagining what it means to be “AI-ready.”
As India’s CEOs look to the future, their approach is marked by both ambition and caution. They’re betting big on AI—not just as a tool for growth, but as a catalyst for transformation across every facet of their organizations. From bolstering cybersecurity to advancing sustainability goals, from upskilling employees to redesigning entire business models, the message is clear: the future belongs to those who can adapt, innovate, and lead with vision.
With AI taking center stage in boardrooms from Mumbai to Bengaluru, Indian companies are poised to shape not just the future of business in their own country, but potentially set the pace for the rest of the world. The coming year promises to be a defining one, as bold investments, strategic pivots, and a relentless focus on resilience come together to chart a new course for corporate India.
