From potential to performance in the age of AI

Amidst a subdued global outlook — with just over half of global CEOs expecting growth — India stands out as an exception. A striking 77% of India CEOs anticipate stronger domestic growth, and 57% express high confidence in near‑term revenue growth, nearly double that of their global peers. In a world defined by uncertainty, India’s ascent on the global investment map stands out, driven to some extent by a leadership mindset that blends resilience with bold intent.

Key findings at a glance

Threats and challenges

A broader range of near-term threats compared to the past two years is also a likely cause for global CEOs feeling increasingly vulnerable.

Their concerns about macroeconomic volatility (31%), cyber risks (31%), and inflation (25%) are grounded in recent events that have already disrupted markets and operations.

Unpredictable economic shifts over the past months have unsettled supply chains. Notably, 20% of CEOs globally and 11% in India said they were highly or extremely exposed to tariff threats.

For India CEOs too, the risk landscape has undergone a shift: unlike last year when technological disruption and macroeconomic volatility dominated, cyber risks have now emerged as the second top threat (23%), following macroeconomic volatility (30%).

Upside of technological disruptions

This year, 24% of global CEOs cited technological disruption as a major concern — up four percentage points from last year. For India CEOs, technological disruption remained among the top three threats for the second consecutive year. Notably, 20% of India CEOs and 29% of global CEOs believed their technology-related functions were exceeding expectations.

Delhivery is a case in point. Its journey from manual scanning to AI-driven automation reflects how technology-related functions have succeeded in driving efficiency and scalability, transforming operations end-to-end.

On the flip side, nearly half of India CEOs (48%) — well above the global average of 33% — report that their company’s technology-related functions fell short of expectations, signaling either implementation challenges or ambitious targets in a fast-evolving tech landscape.

As AI adoption accelerates, certain junior roles that involve routine tasks are likely to decrease. 54% of India CEOs as against 49% of global CEOs believe that employment at junior levels will decrease in the next three years due to AI adoption. However, CEOs who foster an AI-driven culture emphasised that continuous learning and reskilling can enable their workforce to transition into more strategic and value-added roles.

Building innovation muscle

The second most pressing and immediate priority for CEOs is building adequate innovation capabilities for survival and long-term success in an increasingly uncertain world. Half of India CEOs—and an equal proportion globally—recognise innovation as a cornerstone of their business strategy. Notably, for 16% of India CEOs, between 10% and 20% of total sales has come from new products and services launched within the past three years.

18% of India CEOs attribute 5–10% of their total sales this year to new products and services launched in the last three years

What percentage of your company’s total sales from this fiscal year are attributable to new products or services introduced in the last three years?

Yet, 36% of India CEOs admit their speed to market for launching new offerings lags behind that of their global peers—underscoring a gap between innovation ambitions and the agility required to seize new opportunities. Still, the survey sends a clear message: innovation is not optional; it’s imperative. Our research reveals that companies with established innovation capabilities generate 1.7 times more revenue from new products and services.

Innovation-led diversification

Companies that have built strong innovation capabilities not only generate significantly higher revenues from new products and services, but they are also uniquely positioned to diversify into new sectors with greater agility. Delhivery is a notable example. 

The reinvention opportunity

While disruptions may pose risks, they also create opportunities for companies that are agile and prepared to innovate. And yet, less than one-third of India and global CEOs believe their companies are ready to capture new business opportunities arising from disruptions.

30% of global and India CEOs said they were prepared to capture new opportunities from disruption to a large extent

To what extent has your C-suite’s leadership prepared your company to take the following actions while navigating major disruptions?

By exploring new sectors and innovating boldly, companies can better position themselves to navigate uncertainty. As traditional sector boundaries dissolve and industries reconfigure, businesses can rapidly diversify to seize value in motion.

21% of India CEOs have seen their leadership decisions scrutinised at least moderately by key stakeholders in the last 12 months

In the past 12 months, to what extent has your company experienced any of the following trust concerns from your key stakeholder groups (e.g. the board, customers, regulators, investors, employees)?

Trust concerns experienced in the last 12 months, percentage of CEOs responding at least ‘to a moderate extent’

Proactively building trust is critical, as it directly drives stronger financial performance. Our research shows that companies with the fewest trust concerns delivered total shareholder returns over a 12-month period that were, on average, nine percentage points higher than those experiencing the most trust concerns.

Embedding trust at the core of business strategy therefore is a leadership mandate and should be prioritised as a boardroom agenda item. Building frameworks rooted in transparency, ethical AI governance, and rigorous data stewardship in turn demands decisive action from leaders, regardless of industry or scale.

In an era defined by rapid technological shifts and rising stakeholder expectations, leaders who champion trust by design will not only safeguard resilience but also unlock enduring value.