As companies increase spending on artificial intelligence (AI), business leaders are focusing on how quickly the technology can deliver returns, the cybersecurity risks it creates and its impact on jobs. Yezdi Nagporewalla, CEO of KPMG India, told CNBC-TV18 that regulation was also needed to ensure responsible AI use, with a framework potentially coming sooner than expected.

“Ultimately, ethical considerations translate into behaviour,” Nagporewalla said, arguing that responsible AI could not be the responsibility of any one individual or institution.

According to KPMG's 2026 India CEO Outlook, 78% of CEOs surveyed expect their AI investments to deliver returns within one to three years, while 64% identify ethical challenges as a major obstacle to adopting the technology.

AI discussions have moved beyond the technology's potential to focus on how it can improve productivity, increase revenue and boost profits.

Nagporewalla said company boards were also examining ethical concerns, cybersecurity risks, the impact on employees and how long AI investments would take to pay off.

Cybersecurity has become a bigger concern for CEOs than it was in 2025, he said, pointing to increased spending on security as companies adopt AI.

“You cannot invest in AI without looking at data governance and digital trust,” he said, describing these as increasingly important capabilities for business growth.

On regulation, Nagporewalla said India needed safeguards to ensure AI was used responsibly. While 70% of CEOs surveyed believe regulation could hinder growth, he argued that the two need not be at odds.

He added that the government and regulatory authorities recognised the need for safeguards, and a framework could be introduced “perhaps sooner than expected”.

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