CEOs commit to AI advancement amid tech adoption challenges

CEOs commit to AI advancement amid tech adoption challenges

Technology
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Gary Cohn IBM Vice Chairman | IBM

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A recent global study conducted by the IBM Institute for Business Value has highlighted that CEOs are increasingly committed to advancing AI solutions within their organizations, despite challenges associated with rapid technology adoption. The study, which surveyed 2,000 CEOs worldwide, revealed an expected doubling in AI investment growth over the next two years, with 61% of executives actively adopting AI agents and preparing for large-scale implementation.

The research indicated that a significant portion of CEOs (68%) see integrated enterprise-wide data architecture as crucial for cross-functional collaboration. Additionally, 72% consider proprietary data essential for unlocking generative AI's value. However, many organizations face difficulties creating an effective data environment; half of the respondents acknowledged having fragmented technology due to recent investments.

IBM Vice Chairman Gary Cohn emphasized the importance of embracing risk as an opportunity in his foreword to the study: "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."

Mohamad Ali, Senior Vice President and Head of IBM Consulting, noted that "CEOs are balancing the pressures of short-term ROI and investing in long-term innovation when it comes to adopting AI," adding that organizations continuing to innovate during uncertainty will be better positioned for future opportunities.

Key findings from the study include:

- Only 25% of AI initiatives have delivered expected ROI in recent years, and just 16% have been scaled enterprise-wide.

- Two-thirds (65%) of CEO respondents prioritize AI use cases based on ROI.

- Over half (52%) report realizing value from generative AI beyond cost reduction.

- Many CEOs (64%) feel driven to invest in technologies before fully understanding their value.

- A majority (59%) struggle to balance funding between existing operations and innovation.

- By 2027, 85% expect positive ROI from scaled AI efficiency and cost savings investments.

The study also pointed out strategic leadership and specialized talent as critical factors in unlocking AI value amid expertise gaps. Nearly seven out of ten (69%) CEOs link success to maintaining leaders with strategic understanding and decision-making authority. Furthermore, 67% believe differentiation relies on having suitable expertise with appropriate incentives.

To address skill gaps, approximately one-third (31%) of the workforce will require retraining or reskilling within three years. Meanwhile, automation is expected to play a role for 65% of organizations.

For further details on this comprehensive study conducted by IBM in cooperation with Oxford Economics across various countries and industries between February and April 2025, visit IBM's website.

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