Indian CTOs Rethink AI Stack Strategy

Indian enterprises adopting Artificial Intelligence are navigating significant challenges beyond technology selection. Key decisions now revolve around what capabilities to own, the extent of investment, and how to ensure AI delivers measurable business value.

With approximately 87% of Indian enterprises actively utilizing AI solutions, technology leaders face a complex strategic choice: purchase ready-made solutions, develop in-house expertise, or leverage external model providers. While frontier AI models facilitate integration into products and workflows, crucial factors like cost, speed, data, and business outcomes are increasingly intertwined.

Discussions at Inc42's CTO Summit 2026 highlighted the evolving landscape. A central theme explored was whether the integration of AI into core business processes necessitates entirely new technological layers. Several technology leaders emphasized the critical role of deep domain knowledge in building differentiated products and the strategic advantage of owning proprietary data and context.

The conversation moved beyond the traditional build-versus-buy debate to a more nuanced approach: what to own, what to rent, and for how long. Given the rapid evolution of AI models, building and maintaining proprietary models can quickly become a losing race. Consequently, many executives favour renting intelligence for increased speed and flexibility.

Furthermore, the economic impact of AI deployment was a significant focus. Technology choices must align directly with business metrics, assessing their contribution to profit margins before scaling. Cost-effectiveness is emerging as a primary filter for determining which AI features are viable to develop and implement.