The confidence of CEOs in India in terms of growth prospects for the global economy over the next three years has considerably increased to 69 per cent in 2023 from 57 per cent in 2022, demonstrating optimism and a strong resilience towards a long-term growth trajectory. The level of confidence of CEOs in India in their own company’s growth prospects has remained mostly unchanged from the past year, contrary to the declining confidence of CEOs globally, indicating their resilience in weathering the storms of uncertainty, revealed a report on CEO Outlook 2023 by KPMG.
Even though CEOs in India see a slight decline in growth prospects for the country in 2023 from 2022 levels, they exhibit enough resilience to recover in the short-term.
Amongst the top five disrutive risks in 2023 for CEOs, disruptive technology stood out.
Puneet Chandok, CVP & President, Microsoft India, and South Asia says, “Technology is at a true inflection point. AI is the arrowhead that is driving real and tangible impact. In fact, 66 per cent of CEOs in India and 70 per cent of CEOs globally are naming it as a top investment priority. The question every leader is asking themselves right now is this: How can my organization seize the full potential of AI, while safeguarding the business, data, and employees? A customer-centric approach coupled with an ‘AI-first’ strategy will ultimately lead to AI success and the first step is to focus on strategic goals with a growth mindset. It’s time to ‘Reimagine’, ‘Reorient’ and ‘Redeploy’ AI strategy at every level of the organization to help people become more productive, more creative, and more innovative.”
Emerging / disruptive technology considered as top growth risk
Emerging/disruptive technology has emerged as a primary risk and one of the greatest threats to organisational growth for CEOs in India as well as globally. In the quest to mitigate these risks and challenges, CEOs in India continue to prioritise digital transformation – with 21 per cent CEOs in India compared to 22 per cent CEOs globally agreeing to have taken strides in advancing digitisation and connectivity across the business, as their top operational priority to achieve their growth objectives over the next three years.
Focused investments in generative AI
Since the introduction of AI chatbots in 2022, there has been increased interest in generative AI among investors, researchers, and developers. As organisations look to harness the potential of AI, generative AI has become increasingly important due to a growing demand for customised content and advancements in AI algorithms.
CEOs in India and globally are prioritising investments in generative AI as a key competitive advantage for the future, with 66 per cent of CEOs in India compared to and 70 per cent of CEOs globally considering it as a top investment priority for their organisation.
Implementation of generative AI yields significant benefits for CEOs in India including job creation (20 per cent), while CEOs globally see increased profitability (22 per cent), as the top benefit. Despite ongoing economic uncertainty, generative AI remains a crucial investment for CEOs both in India and globally who are looking to stay ahead of the curve.
Generative AI – a double edged sword
With the increasing adoption of generative AI among organisations, it is essential to recognise the potential security risks that come with this technology. Cybercriminals could exploit generative AI to launch highly convincing phishing attacks and breach systems, making it crucial for organisations to bolster their defences against these emerging threats.
While CEOs in India and globally recognise the potential benefits of generative AI in detecting cyber-attacks, they also acknowledge the potential risks associated with its use. 77 per cent of CEOs in India compared to 82 per cent CEOs globally view generative AI as a double-edged sword, as it can both enhance cybersecurity efforts and create new vulnerabilities for adversaries to exploit. Despite these concerns, a higher number of CEOs in India at 61 per cent compared to 52 per cent CEOs globally feel confident in their organisation’s preparedness for potential cyber-attacks.
Comparison of CEOs in India and globally on preparedness for cyberattacks
Increasing cyber threat and sophistication of attacks are primary reasons for organisations feeling underprepared for a cyber-attack, with 25 per cent CEOs in India compared to 27 per cent CEOs globally mentioning this as a reason for their unpreparedness.