CEOs in India keep investment in AI as top priority, most expect returns within 1-3 years: KPMG

AI remains a top priority for investments among Indian CEOs, with 57% planning to earmark 10-20% of their budgets in AI over the next 10-12 months, according to KPMG’s recently released 2025 India CEO Outlook, which took inputs from 125 business leaders across industries and sectors.

“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,” said Yezdi Nagporewalla, CEO KPMG India, in a statement.

73% of the surveyed CEOs expect returns on AI investments within one to three years, whereas 86% believe their boards are well-equipped to navigate the adoption of advanced technology, including leveraging data and AI for sustainable growth.

The integration of AI into organisational processes is cited as the most pressing challenge shaping short-term decision-making. Technology-related factors such as cybercrime, AI workforce readiness, and successful AI integration consistently rank among the top factors impacting three-year growth.

91% of Indian CEOs advocate for investing in skill development and lifelong learning to safeguard future talent. 74% recognise that AI workforce readiness will significantly influence organisational prosperity over the next three years. However, 68% agree that competition for AI talent could constrain future growth.

In India, CEOs agree that AI can support sustainability efforts by improving data quality and reporting (75%), identifying opportunities for resource efficiency (72%), and reducing emissions (77%).

According to the report, confidence among CEOs in India in their own companies’ growth prospects has climbed to 83%, up from 68% in 2024 — a significant leap that outpaces that of CEOs globally, which rose from 76% in 2024 to 79% in 2025.

Despite a decline in global economic confidence, from 80% in 2024 to 63% in 2025, Indian CEOs continue to focus on innovation, resilience, and long-term growth strategies. Rather than retreating, they are prioritising strategic investments in technology and talent to drive transformation.