India’s top CIOs reveal whether they’re prepared for their greatest challenges yet – from quantum threats to AI governance.
As technology reshapes the enterprise landscape in 2025, Chief Information Officers face a striking paradox; despite overseeing unprecedented global budgets of $5.74 trillion, they grapple with their most challenging mandate yet. The promise of artificial intelligence has collided with reality. While AI dominates strategic discussions, only 11% of organizations have successfully integrated it into their operations, according to CIO World Asia.
This implementation gap reveals a deeper truth about the modern CIO’s dilemma. As organizations rush to deploy AI, a concerning trend has emerged. A Gartner study indicates that over 60% of AI solutions are being developed outside IT departments, creating a shadow technology landscape that jeopardizes governance, security, and compliance. While this decentralized approach to innovation may enhance agility, it also introduces significant risks to enterprise integrity.
Yet, amid these challenges lies an unprecedented opportunity. With technology budgets growing 9.3% year-over-year, according to Gartner, CIOs stand at a pivotal moment. Success in 2025 demands more than technical expertise—it requires orchestrating a delicate balance between innovation and control, democratization and governance, speed and security. This evolving landscape poses a critical question: are today’s technology leaders in crisis, or are they on the verge of reimagining enterprise technology for the AI age?
In this month’s cover story, we spoke with some of the country’s leading technology leaders to uncover their 10 biggest priorities shaping the tech agenda and to understand their position in the transformation journey. From quantum security imperatives to the talent crisis, and from AI governance to sustainability mandates, their insights reveal both the complexity of the challenges ahead and the way forward for technology leadership in 2025.
For most CIOs, the goal of leveraging these technologies continues to center around strengthening productivity, reducing costs, and enhancing agility through cutting-edge automation and AI solutions.
1. The promise and practice of GenAI
The current state of generative AI implementation mirrors the early days of cloud computing, where enthusiasm often outpaced practical application. Deloitte’s Tech Trends 2025 Report reveals that while more than three-quarters of organizations are exploring generative AI, less than a quarter have established proper governance frameworks.
“In India, AI adoption is a challenge. Only around 20% of organizations are truly AI-ready mostly large, mature financial institutions with ample data. For us, AI is now a top priority, alongside cybersecurity,” says Rajneesh Garg, CIO and Senior Vice President at AllCargo Logistics. The challenge isn’t just technical it’s deeply operational.
Organizations are discovering that generative AI represents a fundamental shift in work processes, not just another tool in their technology arsenal. Data quality emerges as a critical bottleneck, with two-thirds of initiatives failing due to poor data quality.
“The challenge is incomplete education. Senior leadership know what AI is, and what AI does, but they still tend to underestimate how to do it and how expensive it is,” explains Vinod Sivarama Krishnan, CDIO, Essar. Integration with legacy systems presents another significant hurdle, as more than half of organizations struggle with seamless interoperability. Perhaps most concerning is the skills gap, with nearly three-quarters of organizations reporting insufficient internal expertise to properly implement and manage AI systems.
Despite these challenges, recent forecasts indicate strong spending on AI infrastructure. Gartner projects that server sales – largely driven by GenAI experimentation will almost triple from $134 billion in 2023 to $332 billion by 2028, reflecting CIOs’ growing resolve to accommodate AI’s computational demands. John-David Lovelock, VP Analyst at Gartner, cautions, “The reality of what can be accomplished with current GenAI models, and the state of CIOs’ data will not meet today’s lofty expectations.”
Anand Deodhar, Group CIO, Force Motors, explains it further. “By 2025, AI, machine learning, IoT, and 5G will significantly impact the IT landscape, making systems smarter and more connected. However, the main challenges include integrating new technologies with legacy systems and ensuring the workforce is skilled to handle them. CIOs need to focus on adaptability and robust cybersecurity.”
“We’re already implementing some AI projects, focusing on operations and RPA. Some initiatives are in PoC stages. Budget allocations have definitely increased, especially for experimenting with AI to enable top-line growth and improve customer experiences. But benefit realization remains the biggest challenge,” adds Nitin Dhingra, CTO, Executive VP, Indira IVF Group.
Navigating the new regulatory minefield India’s regulatory landscape in 2025 presents CIOs with an unprecedented challenge: balancing innovation with compliance in an increasingly complex legal environment. According to PwC’s October 2024 Pulse Survey, 68% of tech leaders now view AI-related legal and reputational risks as moderate to serious concerns.
This caution isn’t unfounded as IDC predicts that by 2025, penalties for AI misuse and data protection violations will surpass traditional cybersecurity fines for the first time. “One major challenge is building
customer trust in AI, particularly in terms of data privacy and transparency,” explains Hemant Verma, Chief General Manager of IT and CTO at Punjab National Bank.
“Customers need to feel confident that their data will be handled ethically. Another challenge is justifying the investment in AI. It’s critical to demonstrate early returns on investment (ROI) to secure ongoing support from the board and stakeholders. We’ve adopted a conservative, step-by-step approach to AI, starting with small-scale implementations, and if we see the measurable benefits then we will scale further,” he adds.
The regulatory maze has become increasingly complex. CIOs must now navigate:
◼ The DPDP Act’s stringent requirements, with penalties up to Rs 250 crore for data breaches
◼ Industry-specific guidelines from regulators like RBI, SEBI, and IRDAI
◼ The emerging National Data Governance Framework Policy
◼ Data localization requirements and cross-border transfer restrictions
◼ Global compliance requirements for international operations
“We securely store limited user data—just the mobile number—to build a user history,” says Jitender Verma, CIO, PVR. “For compliance, we also collect basic details (like a work email and mobile number) when booking tickets. However, we don’t store payment information. Payments go through trusted third parties, and that sensitive data stays with them, not us.”
The impact is profound. Organizations are responding with increased cybersecurity budgets – Gartner estimates a 15% rise in spending for 2025. Many are investing in compliance automation tools, recognizing that manual compliance processes are no longer sustainable in this complex regulatory environment.
For Indian CIOs, success in 2025 requires more than just compliance – it demands a fundamental shift in how organizations approach data governance and AI deployment. The future belongs to those who can turn regulatory compliance from a burden into a competitive advantage, building trust with customers while driving innovation within regulatory boundaries.
2. Fortifying against AI-powered cyber threats
The cybersecurity landscape of 2025 presents an unprecedented challenge for CIOs, as the convergence of AI and cyber threats creates a perfect storm of security risks. With Gartner predicting that three-quarters of organizations will face at least one ransomware attack by 2025, the question isn’t if an attack will occur, but when – and how prepared organizations are to respond.
The stakes have never been higher. AI-powered attacks have surged by 267% year-over-year, introducing sophisticated threats that can adapt and evolve faster than traditional security measures can respond. This new breed of attacks, combined with supply chain vulnerabilities affecting 82% of organizations, has created a complex security ecosystem that demands immediate attention and innovation.
Are CIOs ready? The evidence suggests a mixed picture. While 63% of organizations plan to increase their cybersecurity budgets in 2025, according to HCLTech’s Cyber Resilience Study, many still rely on outdated perimeter-based security models. Progressive CIOs are leading the charge with zero trust architectures and AI-driven security operations centers (SOCs), but implementation remains uneven across industries.
“From our perspective, security solutions integrated with AI models to give us a zero-trust architecture
is our top priority for the year,” says Kunal Dikshit, CITO; IT Governance and Security, Fedbank Financial Services Ltd. “We’re fortifying our ecosystem with next-generation firewalls and tools. We want real-time monitoring and real-time control, shifting from reactive to proactive.”
The investment numbers tell the story: Global cybersecurity spending is projected to reach US $212 billion in 2025, marking a 15% increase from the previous year. However, as several CIOs point out, success isn’t just about technology investment – it’s about creating a security-first culture, training teams effectively, and maintaining constant vigilance against evolving threats.
Mastering Agentic AI’s promise and perils Agentic AI – the next frontier of autonomous AI systems capable of independent decision-making is emerging as a critical priority for CIOs in 2025. While generative AI grabbed headlines in previous years, these more sophisticated AI agents represent a fundamental shift in how organizations approach automation and strategic decision-making.
The potential is compelling. MIT Technology Review’s latest findings show these systems can not only execute tasks but also initiate actions, learn from interactions, and adapt without direct human intervention. For Indian enterprises, this translates to tangible benefits – reducing decision-making time by 64% and improving operational efficiency by 43%.
Capgemini’s GenAI research reveals that 82% of companies plan to integrate AI agents in the next 1–3 years. Industry estimates value the market for AI agents at US $5.1 billion in 2024, growing to US $47.1 billion dollars by 2030 (a CAGR of 44.8%). CIOs report that while Agentic AI systems can reduce decision-
making time by 64% and improve operational efficiency by 43%, they also introduce new risks around autonomous decision-making.
The key challenge is balancing autonomy and oversight, with 71% of organizations struggling to establish effective governance frameworks for these systems.
Solving the tech talent equation. The technology talent crisis in 2025 has evolved into a complex challenge that threatens to derail digital transformation initiatives across India. While 76% of organizations are increasing their technology budgets, Forrester’s research reveals a troubling statistic: 63% report negative ROI on AI investments.
At the heart of this paradox lies the talent equation. For Indian CIOs, the challenge is three-fold. First, the cost of acquiring AI specialists has surged dramatically, with compensation rising 31% year-over-year. Second, the competition for talent has intensified, with 82% of CIOs losing candidates to better-funded competitors, both domestic and international. Third, and perhaps most critically, the capability gap within existing IT teams continues to widen, with 57% of staff requiring significant upskilling to handle emerging technologies.
“Our approach is to embed emerging tech champions within each IT sub-department,” explains Nitin. “Around 10–15% of our team has a dedicated KPI for new technologies. AI is moving from PoC to mainstream, especially after Gen AI. The key is ensuring benefit realization and nurturing projects post go-live.”
Progressive organizations are responding with innovative solutions. While global giants like Amazon are committing billions to upskilling programs, Indian enterprises are developing their strategies. Some are partnering with educational institutions for specialized training programs, while others are creating internal academies focused on emerging technologies.
“We can plan a lot of things but if we don’t get the right people for the job or train them well, it won’t work,” emphasizes Kunal. “We partner with OEMs for skill-building. This will consume 70–80% of our resources this year.” This substantial investment in training reflects the growing recognition that building internal capabilities may be more sustainable than competing for scarce talent in an overheated market.
The trend aligns with India’s broader IT spending growth of 9.3%, where a significant portion is now being directed toward workforce development. CIOs are increasingly focusing on creating a learning culture that can adapt to rapid technological change, rather than solely relying on external hiring to fill capability gaps.
3. Preparing for the quantum security revolution
The quantum computing revolution poses a unique challenge for CIOs in 2025, preparing for a threat that doesn’t yet exist but could render current security measures obsolete overnight. MIT Technology Review’s warning that quantum computers could break today’s standard encryption within 5-10 years has created a pressing need for proactive security measures, yet many organizations remain dangerously unprepared.
For Indian enterprises, the stakes are particularly high. While India’s National Quantum Mission (NQM) demonstrates the government’s commitment with its ₹6,000 crore budget through 2031, organizational readiness tells a different story. A stark 89% of organizations still lack quantum-ready security measures, and only 12% of CIOs have initiated quantum-safe transition planning.
The estimated costs, ranging from 3-7% of IT budgets, present a significant investment challenge for many organizations. The NQM’s focus on developing quantum technologies presents both opportunities and challenges for Indian CIOs. While it promises to build domestic quantum computing capabilities, it also highlights the urgent need for quantum-resistant cryptography. Organizations handling sensitive data, particularly in sectors like finance, healthcare, and manufacturing, face the most immediate pressure to begin their quantum-safe transition.
World Economic Forum suggests business leaders who are preparing for AI and quantum computing, consider “strategic value of large quantitative models (LQMs)”. These models run on classical computers and use advanced algorithms to analyse and stimulate complex systems. The challenge for CIOs in 2025 is going to be balancing immediate security needs with quantum-safe preparation while managing limited budgets and resources. As quantum computing capabilities advance, this balancing act will only become more critical.
The complexity around global observability and machine identity The modern IT landscape faces a critical paradox: despite an abundance of monitoring tools, true visibility remains elusive. While enterprises deploy an average of 47 different monitoring solutions, 73% of incidents still go undetected until it’s too late – revealing dangerous gaps in observability.
The challenge extends beyond human oversight. Machine identity management has become increasingly crucial and costly, with expenses climbing 41% year over year. Organizations must now secure and manage an ever-expanding universe of digital certificates, keys, and credentials across distributed systems. This proliferation of digital identities adds another layer of complexity to an already intricate landscape.
The irony is stark: more tools have led to less clarity. Organizations find themselves drowning in data while starving for insights. However, change is on the horizon. With global IT spending projected to grow 9.3% in 2025, significant investments are being directed toward advanced observability platforms and AIOps solutions. These technologies promise to break the paradox by:
◼ Streamlining incident response through intelligent automation
◼ Simplifying machine identity management across complex environments
◼ Ensuring regulatory compliance through comprehensive monitoring
4. Business process transformation
AI integration into business processes has yielded remarkable results for organizations that do it right. Deloitte’s findings show successful AI-driven process improvements can reduce operational costs by nearly a third. However, this success isn’t uniform. Process mining adoption has grown 167% year-over-year as companies seek to understand their workflows. Yet automation success rates vary from 23% to 88%, depending on the approach.
Change management remains the biggest hurdle, with two-thirds of projects failing due to organizational resistance rather than technical limitations. On a broader scale, digital transformation spending is set to approach $4 trillion by 2027 at a CAGR of 16.2%, with 2025 serving as a pivotal year for modernization, real-time analytics, and hybrid work solutions.
Sanjay Mishra, Group Chief Digital & Information Officer (CDIO), Jindal Stainless Limited, agrees. “Generative AI, advanced analytics, and cloud-native platforms are likely to reshape IT the most by 2025. We’re exploring complete plant digitization by connecting each sensor to the cloud to create a paperless
environment. The biggest hurdles are aligning stakeholders on data strategy, building robust cybersecurity, and ensuring workforce readiness.”
He adds “CIOs must maintain a balance between adopting cutting-edge tools and safeguarding organizational assets—prioritizing data privacy, compliance, and ethical AI practices.”
5. Bridging the data-decision divide
The data paradox of 2025 presents a critical challenge for Indian CIOs: despite massive investments in data infrastructure, the gap between data collection and actionable insights continues to widen. While 92% of CIOs claim to be data-driven, Salesforce’s revealing report shows only 29% effectively leverage data for major decisions – a disconnect that’s particularly pronounced in the Indian context where digital transformation is accelerating rapidly.
Prosenjit Sengupta, Group CDIO, ITC, addresses this “data paradox”. “We have plenty of data. The real question is how AI and Generative AI can turn years of accumulated information into actionable insights, guiding our future decisions and direction.”
“A key focus area for us is embedding predictive and prescriptive analytics into core systems,” explains Saurabh Gupta, Group CDIO of Gujarat Fluorochemicals. “Our aim is to deliver real-time insights directly at the point of decision-making. This strategy will enhance operational efficiency and empower teams across the organization to make smarter, data-driven decisions without disrupting their workflows.”
The challenges are multifaceted: poor data quality plagues legacy systems, departmental silos create data fragmentation, and the sheer volume of information leads to analysis paralysis. For Indian enterprises, these challenges are compounded by the rapid digitization of traditional industries and the need to integrate data from both modern and legacy sources.
Global spending on analytics and Business Intelligence is projected to grow at a CAGR of 14.9% through 2030, reflecting the universal recognition of data’s strategic importance. However, leading Indian CIOs are taking a more nuanced approach, focusing not just on technology investments but on creating a data-driven culture.
The real challenge isn’t collecting data anymore. It’s about making data accessible, trustworthy, and
actionable across the organization. Many organizations are focusing on data literacy programs and embedding analytics directly into business processes. For CIOs, the path forward lies in bridging the gap between data abundance and decision intelligence through better data governance, improved analytics
capabilities, and a culture that values data-driven decision-making at all levels.
6. Building resilient IT foundations
All these challenges coalesce around resilience. IDC’s research shows that organizations with mature IT resilience programs recover 4.5 times faster and spend 62% less on incident response. Adoption of distributed architectures has surged by 156%, indicating that resilience isn’t just about recovery but continuous adaptation. AI-powered predictive maintenance can reduce downtime by 38%.
Cross-functional resilience teams are now standard in two-thirds of organizations. Meanwhile, the post-pandemic digital transformation wave has accelerated cloud investments. Gartner notes that Infrastructure-as-a-Service (IaaS) spending soared 22.6% in 2024 and will likely grow further in 2025.
What’s ahead
The interaction between these various challenges and opportunities creates a complex web that CIOs must navigate. Success in one area often depends on capabilities in another, calling for holistic thinking and integrated solutions. A prime example is Green IT, which has evolved from a nice-to-have initiative to a business imperative.
According to Gartner’s research, energy-efficient technologies can reduce operational costs by 23–47%, and 78% of IT purchasing decisions now factor in carbon footprints. Not only can sustainable data centers yield a 34% better ROI than their traditional counterparts, but investments in cloud infrastructure are also set to reach US $1.3 trillion by 2025, per IDC. This shift promises reduced on-premises energy consumption and increased operational flexibility—further underscoring the importance of aligning environmental responsibility with business strategy.
Meanwhile, the most recent Gartner forecast underscores the broader complexity. While overall IT spending is predicted to climb from $5.26 trillion in 2024 to $5.74 trillion in 2025, CIOs may see tempered expectations around AI and increasing scrutiny on ROI across the technology stack.
Mastering any single technology isn’t enough—it’s about building organizational capability to evolve continuously without sacrificing operational stability. This means balancing innovation and reliability, automation and human insight, and global standards and local needs. As Kunal puts it, “We need to quantify the benefits—whether cost savings or brand protection—to justify spending on emerging technologies. It’s about picking your battles and doing the right things.”
Ultimately, the CIOs who align growth objectives with resilient, future-proof IT foundations—including sustainability—will not just survive but thrive in the increasingly complex technology landscape of 2025 and beyond.