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Home Analysis

68 percent Indian CEOs see AI talent shortage constraining business success: KPMG 2025 Report

by MN4U Bureau
October 16, 2025
in Analysis
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Mumbai: CEOs in India are demonstrating renewed confidence in their organisations’ growth prospects, reflecting strong resilience and strategic clarity, according to the KPMG 2025 India CEO Outlook, which surveyed 125 business leaders across industries and sectors.

The report reveals that confidence among Indian CEOs in their own companies’ growth prospects has climbed to 83 percent in 2025, up from 68 percent in 2024 — a significant leap that outpaces global CEO confidence, which rose from 76 percent in 2024 to 79 percent in 2025.

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

AI and Technology: AI remains a top investment priority, with 57 percent of Indian CEOs planning to allocate 10–20 percent of their budgets to AI over the next 12 months, compared with 69 percent globally. A majority (73 percent) expect returns on AI investments within one to three years, and 86 percent believe their boards are well-equipped to navigate advanced technology adoption, including leveraging data and AI for sustainable growth.

Talent and Workforce Readiness: Competition for AI talent remains a pressing challenge, with 68 percent of Indian CEOs agreeing that it could constrain future growth. At the same time, 91 percent advocate for investing in skill development and lifelong learning, while 74 percent recognize that AI workforce readiness will significantly influence organisational prosperity over the next three years.

Risk, Resilience, and ESG: Technology-related factors, including cybercrime, AI integration, and workforce readiness, continue to shape short-term decision-making. Indian CEOs also see AI as a driver of sustainability, with 75 percent saying it can improve data quality and reporting, 72 percent citing resource efficiency opportunities, and 77 percent noting potential for emission reductions.

Yezdi Nagporewalla
Yezdi Nagporewalla

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

The report underscores that Indian CEOs are betting on AI, talent, and sustainability as the cornerstones of growth and competitiveness, setting the stage for accelerated transformation amid global uncertainty.

Tags: KPMGYezdi Nagporewalla

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