As artificial intelligence becomes central to business strategy, Indian companies are beginning to assess senior leaders on how effectively they adopt and implement AI to improve productivity and deliver measurable business results.
Organisations across sectors, including banking and consulting, have started adding AI-related objectives to the performance appraisals of around 5%–15% of their senior leadership teams. These AI goals are being evaluated alongside traditional performance indicators such as people management, operational excellence and financial performance. The move reflects increasing investments in AI upskilling and a stronger focus on creating business value through AI.
A consulting firm said AI is now a core part of its daily operations after years of investing in employee training. The organisation plans to evaluate AI adoption by measuring improvements in productivity and operational efficiency, making it an important factor in leadership assessments.
Private sector banks are also integrating AI into executive performance goals. One leading bank has included AI implementation in the key result areas of its top management. Senior leaders are currently overseeing 5–10 AI projects each and are expected to spend nearly 20% of their time driving these initiatives while delivering measurable business outcomes. The bank’s focus is on moving beyond pilot projects to achieve improvements in revenue, cost efficiency, risk management and customer experience.
The trend is also making performance reviews more competitive for organisations that continue to use the bell curve appraisal model, where employees are ranked across different performance levels. Industry experts believe AI-focused performance metrics will initially remain limited to senior leadership before gradually extending to middle and junior management.
Technology companies are also tracking the business impact of AI. One engineering company has been measuring how AI improves productivity, shortens project timelines and enhances operational efficiency since last year. At the same time, many large Indian enterprises are transforming into AI-first organisations by redesigning core business processes around artificial intelligence.
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