A global survey by the IBM Institute for Business Value has found that 50% of surveyed CEOs report that rapid investment has led to fragmented and disconnected technology systems. The study, which polled 2,000 CEOs from around the globe, reveals that 61% are actively deploying AI agents and preparing for large-scale implementation within their organisations. The survey anticipates that AI investment growth will more than double over the next two years.
The findings indicate that 68% of CEOs consider an integrated enterprise-wide data architecture essential for effective cross-departmental collaboration. Meanwhile, 72% view their organisation’s proprietary data as crucial for leveraging the capabilities of generative AI. Despite these priorities, many organisations struggle with cohesive data environments due to the rapid pace of technological investment.
CEOs struggle to balance short-term returns with long-term innovation goals
Balancing short-term returns with long-term innovation remains a challenge for CEOs. Only 25% of AI initiatives have achieved the anticipated return on investment, respondents said, while just 16% have been scaled across enterprises. In response, 65% of CEOs are prioritising AI use cases with clear ROI metrics, and 68% have implemented measures to evaluate innovation returns. Furthermore, 52% of CEOs report deriving value from generative AI investments beyond cost savings.
The survey also highlights that 64% of CEOs feel compelled to invest in technology to avoid falling behind, although only 37% believe it is preferable to be “fast and wrong” rather than “right and slow” in technology adoption. Additionally, 59% of CEOs find it difficult to balance funding for ongoing operations with investment in innovation during unexpected changes.
Meanwhile, 67% seek greater budget flexibility to capitalise on digital opportunities that drive long-term growth and innovation. By 2027, 85% of CEOs expect positive returns from investments in AI efficiency and cost savings, with 77% anticipating positive returns from AI-driven growth and expansion.
The study underscores the importance of strategic leadership and specialised talent in unlocking AI’s value, amidst current skills shortages. According to 69% of CEOs, organisational success is linked to having a broad leadership team with strategic insight and decision-making authority.
Additionally, 67% stress that differentiation depends on having the right expertise in key positions with appropriate incentives. CEOs cite lack of collaboration, risk aversion, and expertise gaps as significant barriers to innovation. Approximately 31% of the workforce will require retraining or reskilling over the next three years, with 65% of organisations planning to use automation to address skill gaps. Moreover, 54% of CEOs are hiring for AI-related roles that did not exist a year ago.
Read more: Over half of CEOs report efficiency gains from generative AI, study reveals
