Indian CEOs prioritise AI, 73% expect returns on AI investment within three years: KPMG

Indian CEOs are prioritising AI, with 57 per cent planning to allocate 10-20 per cent of their budgets to AI initiatives over the coming year. Globally, 69 per cent of CEOs expect to make similar commitments, stated the KPMG 2025 India CEO Outlook report.

The report notes that 73 per cent of Indian CEOs expect returns on their AI investments within one to three years, and 86 per cent consider their boards well prepared for advanced technology adoption.

Technology-related risks are a growing focus, with four of the top five trends influencing organisational prosperity over the next three years being technology-driven. These include cybercrime, AI workforce readiness, successful AI integration, and competition for AI talent.

In 2025, Indian CEOs shifted their priorities from cost-of-living and trade regulations in 2024 to technology issues such as generative AI and cybersecurity, it added.

Although confidence in global economic growth has declined – from 80 per cent in 2024 to 63 per cent in 2025 – Indian CEOs’ confidence in their own companies’ growth prospects has risen. CEO confidence in organisational outlook in India climbed to 83 per cent in 2025, up from 68 per cent in 2024, compared to a global increase from 76 per cent to 79 per cent. This reflects a strategic emphasis on resilience and transformation.

Talent strategy remains critical. The survey found that 91 per cent of Indian CEOs advocate for skill development and lifelong learning to safeguard future talent. Additionally, 74 per cent believe that AI workforce readiness will significantly influence organisational prosperity over the next three years. Despite this, 68 per cent agree that competition for AI talent is likely to constrain future growth.

Environmental, social, and governance (ESG) priorities are closely linked with technology strategies. Many Indian CEOs see AI as instrumental in supporting sustainability objectives: 75 per cent agree AI can improve data quality and reporting, 72 per cent see it enabling resource efficiency, and 77 per cent believe it will help reduce emissions.

KPMG in India CEO Yezdi Nagporewalla commented: “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. At the same time, a renewed focus on talent strategy, redesigning roles, embedding innovation, and fostering continuous learning is helping organisations stay competitive and ready for what lies ahead.”

Now in its eleventh year, the KPMG India CEO Outlook surveys 1,350 CEOs globally, including 125 from India, offering insight into the evolving landscape of business challenges and strategic responses.