Indian Firms Fast-Track AI Adoption as Chief AI Officers Step into Senior Leadership Roles

Indian companies are accelerating their shift from experimental AI projects to scaled deployments by elevating Chief AI Officers (CAIOs) into senior leadership roles, according to a new report from the IBM Institute for Business Value.

The study finds growing organisational alignment around AI strategy, measurable business impact where CAIOs are in place and a strong pipeline of firms planning to install CAIOs over the next two years.

The IBM analysis shows that 77% of CAIOs in India report strong support from the broader C-suite and that 67% cite direct backing from their CEOs, indicators, analysts say, that AI initiatives are being treated as strategic priorities rather than isolated pilots.

While just 25% of surveyed Indian enterprises currently have a CAIO, two-thirds plan to appoint one within 24 months. Crucially, organisations with CAIOs report roughly a 10% higher return on AI spend, underscoring the commercial value of dedicated AI leadership.

Mandate and Remit

Indian CAIOs are carrying broad mandates that combine strategy, technical oversight and organisation change. The study highlights that defining AI strategy (70%), creating change-management plans for AI adoption (57%) and directing implementation (57%) rank as their top responsibilities, each figure above global averages by about 10 percentage points.

Many CAIOs also own talent development: 43% oversee upskilling programmes and 37% lead reskilling efforts, while 60% control AI budgets, increasing accountability for outcomes.

Technical fluency appears central to the role in India: seven in ten CAIOs come from data backgrounds, 73% have technology experience and half report an innovation background. More than half of CAIOs were promoted internally, signalling that organisations are cultivating AI leadership from within rather than relying solely on external hires.

Optimistic Outlook

Although 67% of Indian firms remain focused on pilots today, the report suggests a promising execution environment: only 18% of Indian CAIOs describe AI implementation as “very difficult,” compared with 30% globally. That relative optimism, coupled with strong leadership support and budget control, positions Indian enterprises to accelerate the transition to scaled, measurable AI deployments.

Viswanath Ramaswamy, Vice-President, Technology, IBM India & South Asia, said CAIOs will be pivotal in moving organisations beyond individual projects to enterprise-wide transformation. “To succeed, CAIOs must develop a clear transformation roadmap with measurable KPIs, foster alignment with the C-suite on business priorities and focus on initiatives that deliver a sustainable and competitive edge,” he said.

Implications

The study highlights three practical imperatives for Indian firms: embed CAIOs with clear strategic authority and budget, invest in internal talent pipelines to staff AI programmes, and prioritise measurable business outcomes over proof-of-concepts.

Together, these moves could explain why companies that appoint CAIOs are already seeing better returns on AI investment and are more likely to scale projects across the enterprise.

The findings and detailed recommendations are published by the IBM Institute for Business Value. Organisations and leaders seeking to accelerate AI adoption can consult the full study and implementation playbook on IBM’s research portal.