65% of Indian CEOs prioritise AI but 76% say regulation and governance lag behind: KPMG report

A majority of Indian CEOs are betting big on artificial intelligence, with 65% naming it their strategic priority for driving growth, according to KPMG's 2025 India CEO Outlook. This almost matches the global figure of 71%.

Many acknowledge that issues, including data privacy, ambiguous legislation, and the requirement to upskill employees, might hinder progress.

About 76% of Indian CEOs say that one of the biggest problems with using AI in their companies is the lack of clear rules or regulations. This makes it hard for businesses to move forward with AI, as there are not enough guidelines.

Apart from this, about 53% of Indian CEOs said their companies struggle with data readiness, meaning they lack high-quality, well-organised data needed for AI systems to function accurately, while 46% highlighted a shortage of skilled professionals, such as data scientists and AI engineers, which slows down AI adoption.

Nearly 29% of Indian CEOs believe that cybercrime is affecting their short-term business decisions, and around 75% of them point out that online insecurity could hurt their company's growth and success over the next three years.

Akhilesh Tuteja, Partner and Head Clients and Markets, KPMG in India, said, “AI continues to evolve rapidly, becoming a cornerstone of innovation across industries.”

He explained that since CEOs are now seeing measurable returns from AI, investments are shifting from experimentation to core strategy. However, he added that ethical rules and proper oversight are still very important.

“Business leaders must balance two responsibilities: they need to champion AI investments that build future-ready capabilities, while also ensuring those investments are backed by quality data, workforce readiness, and governance frameworks that foster trust and agility," Tuteja said.