Five mantras today's CEO must remember in order to succeed

Generative artificial intelligence (Gen AI) is rapidly transforming the business landscape. With every passing day, its influence in shaping business operations is proving to be more real than hype. Companies that do not recognise or leverage its transformative potential may find it hard to remain economically viable over the next decade or so. PwC’s 27th Annual Global CEO Survey: India perspective, accordingly, highlights the imperative for companies to reinvent—especially with Gen AI—not only to stay the course but also to increase revenue and profitability.

While CEOs in general have been upbeat about the Indian economy, numerous social challenges barricade India’s road to economic prosperity. A well-defined strategy comprising the following five action steps can perhaps help businesses gain a competitive advantage while remaining viable in the long run.

Building Trust

Technological preparedness and the availability of skilled talent have positioned India as an attractive investment and manufacturing destination. India has risen to the fifth position as an investment destination for global CEOs, up from the ninth position it held in 2023, PwC’s 27th Annual Global CEO Survey has revealed. Moreover, the country has also improved its Ease of Doing Business (EoDB) ranking. Nonetheless, businesses continue to be pinched by the burden of compliance, governed as they are by over 1,500 Acts and nearly 70,000 compliances. But what if a company were to shift its perspective and view regulatory compliance as an opportunity and not a barrier? Regulatory compliance can help businesses build trust with their stakeholders and position themselves as ethical and responsible leaders. For instance, if businesses were to show that their business operations comply with the Digital Personal Data Protection (DPDP) Act, that can reassure customers that their data is being handled responsibly.

Customer Preferences

For Indian business leaders, changing customer preferences is the top reinvention driver. The survey shows that 61% of respondents said that customer preferences had led to changes in how their companies created, delivered and captured value in the last five years. It follows, therefore, that companies that focus on continued reinvention to meet the changing preferences of customers will stay ahead of the curve. Recent PwC research suggests that companies can fulfil customer needs by working across industry boundaries. Retail companies can leverage Gen AI, for instance, to enhance customer engagement and personalise product recommendations. Also, with more customers using their smartphones to research products before buying them, it has become imperative for businesses to reach the customer at the pre-purchase stage, even before the choice to buy a particular product is made.

Using Gen AI

Gen AI is helping maximise productivity and efficiency across industries, serving as a co-pilot or intelligent assistant to the human workforce. Indian CEOs acknowledge the transformative potential of Gen AI and anticipate that it will deliver significant benefits. Around 71% of Indian CEOs expected Gen AI to increase employee efficiency over the next 12 months, while 70% believed it would improve their own performance. However, these findings underscore the societal responsibility that CEOs have for ensuring their organisations use AI responsibly. For one, companies need to be certain that the data sets used to train large language models (LLMs) are inclusive and diverse. Stringent tests need to be conducted on Gen AI systems to verify their reliability, safety and relevance before deployment. More importantly, there is a need to establish robust internal governance procedures and provide human oversight.

Decarbonisation

At the COP28 summit in 2023, leaders yet again underscored the need to transition away from fossil fuels. Rapid decarbonisation of the energy system is a necessity, and 130 countries at the summit pledged to triple the world’s installed renewable energy generation capacity. Half of the business leaders polled in our survey believed that regulatory complexities were holding back decarbonisation efforts. Simplifying regulatory processes can accelerate climate action by the private sector. Also, with major Indian firms committing to net-zero targets, it is imperative for businesses in a climate-conscious world to meet investor and customer expectations on sustainability.

Cybersecurity

With businesses increasingly embracing digital transformation, the risk of cyberattacks has grown. It is, therefore, not surprising that cybersecurity figures high among Indian CEOs’ concerns around factors impacting the growth of their businesses. Cybersecurity fears have become more acute with the advent of emerging technologies, like Gen AI. A majority of Indian CEOs believe Gen AI would increase cybersecurity risk and, therefore, it’s important for businesses to put the necessary checks and balances in place.

The increased pressure Indian business leaders expect over the next few years is a sign that continuous reinvention will be needed. Staying ahead then will require every business leader to challenge conventional wisdom, embrace change and leverage potential opportunities, although this will look different for different industries. 

The author is Partner and Leader-Markets, PwC India. Views are personal