India Inc's bold playbook: AI revolution, hiring spree, and climate gains, reveals PwC study

A significant 87% of Indian CEOs are optimistic about the country’s economic growth, surpassing the global average of 57%. Additionally, 74% express strong confidence in their companies’ revenue growth over the next three years, according to PwC’s 28th Annual Global CEO Survey.

The survey, which polled more than 4,700 CEOs across 109 countries, highlights key insights.

From a macroeconomic perspective, India’s robust economic growth, improved ease of doing business, infrastructural developments, and a young, skilled workforce continue to attract investors, according to PwC. However, this optimism is tempered by certain challenges. Technological disruption ranks as the top concern for Indian CEOs, followed by macroeconomic volatility, inflation, and the limited availability of skilled labour. Disruptive technology is also cited as one of the top two factors affecting the economic viability of their companies.

“For CEOs today, the challenge is to envision the ecosystem in which their company will operate in the future. This includes considering the impacts of megatrends like climate change and AI, evolving customer needs, shifting value pools, and the roles their companies will play,” said Sanjeev Krishan, Chairperson, PwC India.

Businesses worldwide have experienced efficiency gains and increased revenue from generative AI (GenAI) in the last 12 months. In India, 51% of CEOs are optimistic about GenAI’s positive impact on profitability. However, trust remains a concern, with only one-third expressing high confidence in integrating AI into business processes. The expectation of higher revenue growth is driving recruitment plans, with 68% of Indian CEOs intending to increase headcount—up from 57% last year. Globally, 42% of CEOs plan to hire more staff in the next 12 months, a trend attributed to AI adoption rather than despite it.

“GenAI is not just a technological evolution but a strategic revolution, reshaping the global business landscape. Indian CEOs should harness its potential while proactively managing associated risks. Embedding responsible AI practices into GenAI strategies from the outset can help mitigate many challenges,” added Krishan.

The survey also highlights that more than one-third of Indian CEOs have reported revenue increases from climate-friendly investments over the past five years. Over 60% indicated that these investments have either reduced costs or had no significant cost impact.

Globally, 56% of CEOs said their personal incentive compensation is linked to sustainability metrics. In India, this figure is slightly higher at 58%. The survey indicates that a greater proportion of CEO compensation tied to sustainability metrics often correlates with higher revenue from climate-friendly investments.

Some CEOs have already embarked on a reinvention journey. Four out of ten CEOs in India and globally said their companies have entered at least one new sector or industry in the past five years. Among Indian CEOs, 50% reported that 1–20% of their revenue now comes from these new sectors, compared to 58% globally.

The most common reinvention actions among Indian CEOs over the past five years include developing innovative products and services and exploring new market routes, such as direct-to-consumer sales instead of intermediaries. Furthermore, 38% of Indian CEOs (compared to 32% globally) have focused on acquiring new customer bases. Collaboration with other organisations has also been a strategic priority for 26% of CEOs in India and globally.