CEOs are committed to advancing AI solutions across their organisation even as they face challenges from accelerating technology adoption.
A new CEO study by the IBM Institute for Business Value, which surveyed 2 000 CEOs globally, revealed that executive respondents expect the growth rate of AI investments to more than double in the next two years, and 61% confirm they are actively adopting AI agents today and preparing to implement them at scale.
According to the findings, 68% of surveyed CEOs identify integrated enterprise-wide data architecture as critical for cross-functional collaboration, and 72% view their organization’s proprietary data as key to unlocking the value of generative AI.
However, the research indicates organizations may be struggling to cultivate an effective data environment: half (50%) of respondents acknowledge that the pace of recent investments has left their organisation with disconnected, piecemeal technology.
In the foreword of the study, IBM vice-chairman Gary Cohn writes: “As AI adoption accelerates creating greater efficiency, and productivity gains, the ultimate pay-off will only come to CEOs with the courage to embrace risk as opportunity. Meaning, focusing on what you can control, especially when there is so much you can’t.
“When the business environment is uncertain, using AI and your enterprise data to identify where you have leverage is a competitive advantage. At this point, leaders who aren’t leveraging AI and their own data to move forward are making a conscious business decision not to compete.”
Mohamad Ali, senior vice-president and head of IBM Consulting, comments: “CEOs are balancing the pressures of short-term ROI and investing in long-term innovation when it comes to adopting AI. But we know that organisations that keep innovating, especially during periods of uncertainty, will emerge stronger and be better positioned to capitalize on new opportunities.”
Other key findings include:
CEOs face competing pressures of short-term ROI and long-term innovation
- Surveyed CEOs report that only 25% of AI initiatives have delivered expected ROI over the last few years, and only 16% have scaled enterprise wide.
- To accelerate progress, two-thirds (65%) of CEO respondents say their organisation is leaning into AI use cases based on ROI, with 68% reporting that their organisation has clear metrics to measure innovation ROI effectively.
- Just over half (52%) of CEO respondents say their organisation is realizing value from generative AI investments beyond cost reduction.
- 64% of CEOs surveyed acknowledge that the risk of falling behind drives investment in some technologies before they have a clear understanding of the value they bring to the organisation, but only 37% say it’s better to be “fast and wrong” than “right and slow” when it comes to technology adoption.
- 59% of surveyed CEOs admit their organisation struggles to balance funding for existing operations and investment in innovation when unexpected change occurs, as 67% say more budget flexibility is needed to capitalise on digital opportunities that drive long-term growth and innovation.
- By 2027, 85% of surveyed CEOs expect their investments in scaled AI efficiency and cost savings to have returned a positive ROI, while 77% expect to see a positive return from their investments in scaled AI growth and expansion.
CEOs see strategic leadership and specialised talent as essential to unlocking AI value, amid expertise and skills gaps
- 69% of CEO respondents say their organisation’s success is directly tied to maintaining a broad group of leaders with a deep understanding of strategy and the authority to make critical decisions.
- 67% of CEOs surveyed say that differentiation depends on having the right expertise in the right positions with the right incentives.
- CEOs cite lack of collaboration across organisational silos, aversion to risk and disruption, and lack of expertise and knowledge as top barriers to innovation in their organisation.
- Surveyed CEOs say roughly one-third (31%) of the workforce will require retraining and/or reskilling over the next three years, while 65% say their organisation will use automation to address skill gaps.
- 54% of CEO respondents say they are hiring for roles related to AI that did not exist a year ago.