76% of Indian Enterprises to Ramp Up Investments in GenAI for Sustainability Enhancement: IBM Study

A comprehensive study conducted by the IBM Institute for Business Value (IBV) sheds light on the sustainability strategies of Indian enterprises, uncovering key insights that highlight a significant shift towards embracing sustainability as a core business imperative. Titled “Beyond checking the box,” the study underscores the transformative potential of embedding sustainability into organizational operations, transcending its traditional perception as an optional add-on.

The findings reveal that Indian organizations integrating sustainability into their operations are positioned to reap substantial business benefits. Notably, these enterprises are 41% more likely to witness significant revenue improvement from sustainability efforts and demonstrate a 90% higher likelihood of outperforming their peers in terms of profitability. Despite these promising indicators, the study highlights a prevalent gap between intent and impact, emphasizing the imperative of bridging this divide for sustained value creation.

According to Sandip Patel, Managing Director of IBM India Private Limited, sustainability has transitioned from being a discretionary practice to an indispensable aspect of modern business operations. Patel emphasizes the pivotal role of Artificial Intelligence (AI) in catalyzing sustainability initiatives, asserting that the commitment of enterprises to invest in GenAI signals a promising trajectory towards a greener, more prosperous future.

Key highlights from the study pertaining to India include:

• 78% of surveyed executives affirm that sustainability drives better business results, with 68% acknowledging its centrality to their business strategy.
• Despite the recognition of sustainability’s importance, 62% of respondents believe that it should be accorded a higher priority within their organizations.
• A staggering 86% of executives emphasize the criticality of high-quality data and transparency in achieving sustainability objectives.
• Funding constraints and skill gaps emerge as primary barriers to advancing sustainability initiatives, with 47% of organizations struggling to secure adequate funding.

Furthermore, the study underscores the growing significance of generative AI in catalyzing sustainability efforts, with 76% of Indian enterprises planning to ramp up investments in this domain. Leveraging AI technologies for sustainability promises to enhance operational efficiency, drive innovation, and facilitate informed decision-making, thereby amplifying the impact of sustainability initiatives.

As Indian enterprises navigate the complexities of sustainability integration, the study advocates for a holistic approach that harmonizes environmental responsibility with technological innovation, setting the stage for a paradigm shift towards sustainable business practices.

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