Indian CIOs prioritise AI investments with over 90% eyeing budget boost: Report

Artificial Intelligence (AI) has emerged as the focal point for Indian Chief Information Officers (CIOs), as revealed in a report by Canva, the world’s leading visual communication platform. The study, encompassing more than 1,360 CIOs worldwide, indicates a significant shift in budget priorities and strategic considerations.

According to the report, an overwhelming majority of CIOs in India, standing at 93 per cent, express intentions to augment their budgets specifically for investments in AI applications. Notably, 51 per cent of them are planning budget increments exceeding 50 per cent, underscoring the pivotal role AI plays in their strategic plans.

IT leaders acknowledge the manifold benefits of integrating AI, including time-saving on creative or strategic tasks (53 per cent), streamlining app usage (53 per cent), and gaining valuable insights for informed business decisions (49 per cent).

However, the report highlights a key challenge faced by CIOs – the identification of the right AI solution. An overwhelming 89 per cent express concerns about the abundance of AI tools, leading to confusion and overlap among employees.

Cameron Adams, Co-founder and Chief Product Officer of Canva, noted that the findings reinforce that CIOs in India want to be agents of change and innovation, by choosing technology that helps their organisations have a greater impact while consolidating cost and reducing complexity.

The report underscores the rising complexity associated with the proliferation of applications in the workplace, with 88 per cent of CIOs grappling with the challenge of application sprawl. Although 47 per cent express significant concerns about increasing complexity, a noteworthy 52 per cent are actively planning consolidation measures, with 30 per cent targeting significant levels of streamlining.

Moreover, the surge in applications is overwhelming IT teams, as 55 per cent of CIOs report insufficient staff for adequately training employees on new applications, hindering seamless integration.

In addition to AI adoption, the report sheds light on CIOs’ focus on integrating AI tools. A substantial 92 per cent strongly agree that AI can significantly enhance both their role and the overall employee experience. However, integrating AI poses challenges, with 56 per cent citing it as a primary concern, followed by access to IT talent (34 per cent) and data security (22 per cent).

Despite these challenges, a resounding 79 per cent of CIOs affirm having firm guardrails in place to ensure safe and responsible use of AI technologies. Adams emphasises the delicate balance CIOs must maintain, stating that navigating the avalanche of new technologies designed to make business easier is proving to be harder than ever.