– More than half of CEOs surveyed say they are pushing their organizations to adopt gen AI faster than some employees are comfortable with.
– Half of CEOs surveyed say they are recruiting for AI-related roles that didn’t exist last year, but more than half have yet to assess the impact of the technology on their workforce.
May 16, 2024
ARMONK, NY, May 16, 2024 /PRNewswire/ — A new study from IBM (NYSE: IBM) The Institute for Business Value found that surveyed CEOs face workforce, culture and governance challenges as they move quickly to implement and scale their strategy. Generative AI through their organizations.
The directory global study*A study of 3,000 CEOs from more than 30 countries and 26 industries found that 64% of respondents say the success of generative AI will depend more on people’s adoption than the technology itself . However, 61% of respondents say they are pushing their organization to adopt generative AI faster than some people are comfortable with.
The results also revealed that nearly two-thirds (63%) of CEOs surveyed say their teams have the skills and knowledge to integrate generative AI, but few understand the impact of adopting generative AI on their organization’s workforce and culture. More than half (56%) of respondents have not yet assessed the impact of generative AI on their employees. Still, 51% of CEOs surveyed say they’re hiring for generative AI roles that didn’t exist last year, while 47% plan to reduce or redeploy their workforce in the next 12 months due to AI generative.
“There is incredible enthusiasm around generative AI, and CEOs want to go beyond the AI hype to deliver business impact. Yet without the right people and culture, progress will be slow,” said Matte candy, Global Managing Partner, IBM Consulting. “As they integrate generative AI into their business strategy, it is essential that leaders develop a cultural mindset that drives adoption and guides people through changes.”
Other key findings from the study include:
Workforce strained under pressure from generative AI adoption
- 40% of CEOs surveyed plan to hire additional staff thanks to generative AI.
- Yet more than half (53%) of respondents say they already struggle to fill key technology roles.
- CEOs surveyed say 35% of their workforce will need reskilling and reskilling over the next three years, compared to just 6% in 2021.
CEOs recognize that it takes cultural change to successfully scale AI, but face challenges in organizational collaboration and adoption.
- 65% of CEOs surveyed say their organization’s success is directly linked to the quality of collaboration between finance and technology, but nearly half (48%) say competition among their leaders sometimes hinders collaboration.
- Most (81%) of CEOs surveyed say that inspiring their team with a shared vision produces better results. At the same time, 37% recognize that their employees do not fully understand the impact of strategic decisions on them.
- 57% of respondents agree that cultural change is more important to becoming a data-driven organization than overcoming technical challenges.1.
- CEOs cite the adoption of generative AI as critical to success, but nearly two-thirds (64%) of CEOs surveyed say their organization needs to take advantage of technologies that evolve faster than people can adapt .
CEOs say benefits of rapid technology adoption outweigh potential risks
- More than two-thirds (68%) of CEOs surveyed agree that generative AI governance should be established when solutions are designed, rather than after they are deployed.
- Although 75% of CEOs surveyed say trustworthy AI is impossible without effective AI governance in their organization, only 39% say they have good generative AI governance in place today.
- At the same time, 62% of CEOs surveyed say they will take more risks than their competitors to maintain their competitive advantage, with half (51%) recognizing that the risk of falling behind pushes them to invest in certain technologies before ‘have a clear idea. understanding of value1.
- 67% of CEOs surveyed say the productivity gains from automation are so great that they must accept significant risks to remain competitive.
- While today 71% of CEOs surveyed are only piloting and experimenting with generative AI, 49% expect it to drive growth and expansion by 2026.
Product and service innovation is a top priority, but focusing on short-term goals could hinder long-term progress.
- CEOs surveyed ranked product and service innovation as their top priority for the next three years – up from sixth place in 2023.
- 41% of respondents say they are willing to sacrifice operational efficiency for greater innovation.
- However, the majority of CEOs surveyed see the focus on short-term performance as the biggest barrier to innovation.
- Today, only 36% of CEOs surveyed are primarily funding their generative AI investments with net new IT spending, with the remaining 64% reducing other technology spending.1.
To view the full study, including actionable strategies to help organizations navigate the complexity of generative AI adoption, visit: https://www.ibm.com/thought-leadership/institute-business-value/en-us/c-suite-study/ceo
*Study methodology
The IBM Institute for Business Value, in cooperation with Oxford Economics, conducted interviews with 3,000 CEOs from more than 30 countries and 26 industries around the world. December 2023 through April 2024 as part of the 29th edition of the IBM C-Suite Study series. These conversations focused on business priorities, leadership, technology, talent, partnerships, regulation, industry disruption and business transformation.
The IBM Institute for Business Value, IBM’s thought leadership think tank, combines global research and performance data with the expertise of leading industry thinkers and academics to deliver insights that make smarter business leaders. For more world-class thought leadership, visit: www.ibm.com/ibv.
1Unpublished data from the IBM Institute for Business Value 2024 CEO Study
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SOURCE IBM
