New research has revealed that 84% of chief marketing officers (CMOs) face challenges due to fragmented systems, limiting their capacity to leverage AI effectively. The IBM Institute for Business Value study, involving 1,800 marketing and sales executives worldwide, highlights that while 81% of CMOs recognise AI as transformative, a significant execution gap persists. More than half, or 54%, admitted underestimating the complexity of translating AI strategies into actionable outcomes, with only 17% feeling prepared to integrate AI into their processes.
The survey indicates that only 23% of CMOs believe their employees are ready for the cultural and operational shifts AI agents bring. Additionally, 67% of respondents see reshaping organisational culture to accommodate emerging technologies as their responsibility. With 64% of CMOs now accountable for profitability and 58% for revenue growth, the study underscores the necessity for improved technology integration and cross-functional collaboration.
According to the study, respondents reporting collaboration challenges experienced a 12% revenue growth in 2024 compared to 13% among more collaborative peers, suggesting a potential $140m revenue increase for a $14bn company.
“The companies that will dominate the next decade are the ones with the deepest AI integrations,” said IBM’s marketing and communications senior vice president, Jonathan Adashek. “This means starting with AI at the core of the organisation and building the right operating model and team on top of that. For many CMOs, this means being willing to admit that our current marketing model—no matter how comfortable, how familiar, or how challenging to replace—is not delivering what is needed and actively sabotaging our future.”
AI-literate talent and clear guidelines essential for achieving objectives
Furthermore, the study revealed that 65% of CMOs agree that AI-literate talent is crucial for achieving high-priority objectives, yet only 21% believe they possess the necessary talent for the next two years. Approximately 22% of organisations have established guidelines for AI in decision-making, indicating that 78% still need to guide employees through significant operational changes. The pace of change creates tensions between demand and operations, with just 24% having technology platforms for consistent cross-functional collaboration and 44% possessing integrated systems for demand planning.
According to the study, operational silos and fragmented technology present significant barriers to performance with only 28% of organisations report effective ownership and alignment of the end-to-end customer experience, impacting financial outcomes. Aligning marketing, sales, and operations could potentially increase revenue by 20%. Data-related challenges, such as workflow synchronisation, data fragmentation, and managing multiple tools, are prevalent, finds survey. A total of 68% of CMOs believe simplifying technology infrastructure will enhance operational efficiency.
A separate survey by Boston Consulting Group earlier this month found that over one-third of CMOs observed improvements in customer experience and content quality from GenAI, though fewer reported efficiency gains compared to last year. Despite this, 71% plan to invest over $10m annually in GenAI over the next three years, up from 57% last year. Confidence in GenAI is expected to rise from 74% in 2023 to 83% in 2025, with 60% of CMOs anticipating revenue growth exceeding 5% in key areas.
Read more: GenAI drives optimism among CMOs despite efficiency gains lag, survey finds
