The AI Spending Wave: Why CFOs Can’t Ignore This Shift
- Tikona Capital
- Jan 1
- 2 min read
"Technology isn’t just a tool anymore — it’s a balance-sheet decision." — Market Insights
AI Adoption Is Accelerating
Globally, enterprises are ramping up investments in Generative AI, automation, and ML-driven decisioning. Gartner estimates corporate AI spend will grow >32% CAGR till 2028, surpassing cybersecurity and cloud as the fastest-growing enterprise tech segment.
In India, large corporates — especially BFSI, retail, logistics, and manufacturing — are building AI use cases from fraud detection to automated forecasting and supply-chain optimization.
Why It Matters for Finance Leaders
While AI promises efficiency and a competitive edge, it comes with capital allocation, risk, and execution considerations:
Rising IT Capex: AI infrastructure (chips, cloud compute, data pipelines) is becoming a critical capital item.
Opex Restructuring: AI shifts spending from manpower-heavy processes to subscription-led automation models.
Data Governance and Compliance: AI systems require strong controls to avoid operational and regulatory risk.
What's Driving Corporate Decision-Making
Three forces are pushing AI into boardrooms:
Cost Pressures: Automation lowers operational intensity and long-term employee costs.
Competitive Moats: Early adopters gain insights, customer experience advantages, and faster decision cycles.
Investor Expectations: Global investors increasingly reward efficiency-led transformations.
Impact for Indian Enterprises
AI could increase EBITDA margins by 1.5–4% over the next 3–5 years, especially for sectors with repetitive workflows — BFSI, IT services, logistics, manufacturing, telecom.
But CFOs need to plan capital efficiency — balancing AI bets with measurable ROI.
What CFOs Should Do
Prioritize AI projects with defined business cases, not exploratory pilots.
Establish AI governance — model risk, data quality, compliance.
Build GenAI-enabled forecasting & FP&A to accelerate decision cycles.
Where Tikona Capital Fits In
At Tikona Capital, we study structural shifts like AI adoption to understand how they impact earnings, margins, and return on capital.
The objective is simple — identify companies where these changes can translate into sustainable returns for our clients.
Ready to Navigate the AI Investment Landscape?
Download the Tikona Capital App:
Get a Custom Investment Strategy:
Schedule a consultation: https://calendly.com/sumitpoddar/30min
Email us: invest@tikonacapital.com
Portfolio Review & Planning: Fill out our inquiry form: https://forms.zohopublic.in/tikonacapitalfinserv1/form/TikonaCapitalFinserv/formperma/5LdIs8hpJCmeU37zeo1xyrXjShRFBwIV5QCzVK4sbIE
Comments