- More than half of CEO respondents say they are pushing their
organization to adopt gen AI more quickly than some employees are
comfortable with
- Half of CEOs surveyed say they are hiring for gen AI-related
roles that didn't exist last year, but more than half have not yet
assessed the impact of the technology on their workforce
ARMONK,
N.Y., May 16, 2024 /PRNewswire/ -- A new study
by the IBM (NYSE: IBM) Institute for Business Value found that
surveyed CEOs are facing workforce, culture and governance
challenges as they act quickly to implement and
scale generative AI across their organizations.
The annual global study* of 3,000 CEOs from over 30 countries
and 26 industries found that 64% of those surveyed say succeeding
with 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 more quickly than some
people are comfortable with.
The findings also revealed that nearly two-thirds (63%) of
surveyed CEOs say their teams have the skills and knowledge to
incorporate generative AI, but few understand how generative AI
adoption impacts their organization's workforce and culture. More
than half (56%) of respondents have not yet assessed the impact of
generative AI on their employees. Yet, 51% of CEOs surveyed say
they are hiring for generative AI roles that did not exist last
year, while 47% expect to reduce or redeploy their workforce in the
next 12 months because of generative AI.
"There is incredible excitement around generative AI, and CEOs
want to move beyond the AI hype to deliver business impact. Yet,
without the right people and culture in place, progress will be
slow," said Matt Candy, Global
Managing Partner, IBM Consulting. "As they embed generative AI in
their enterprise strategy, it's critical that executives build a
cultural mindset that fosters adoption and lead people through the
changes."
Other key study findings include:
Workforces are straining under the pressure of generative
AI adoption
- 40% of CEOs surveyed plan to hire additional staff because of
generative AI.
- Yet, more than half (53%) of respondents say they are already
struggling to fill key technology roles.
- CEOs surveyed say 35% of their workforce will require
retraining and reskilling over the next three years – up from
just 6% in 2021.
CEOs recognize it takes a cultural shift to successfully
scale AI, but face organizational collaboration and adoption
challenges
- 65% of CEOs surveyed say their organization's success is
directly tied to the quality of collaboration between finance and
technology, yet nearly half (48%) say competition among
their C-Suite executives sometimes impedes collaboration.
- Most (81%) CEO respondents say that inspiring their team with a
common vision produces better outcomes. At the same time, 37%
acknowledge that their employees don't fully understand how
strategic decisions impact them.
- 57% of those surveyed acknowledge that cultural change is more
important to becoming a data-driven organization than overcoming
technical challenges1.
- CEOs cite generative AI adoption as being critical to success,
but nearly two-thirds (64%) of surveyed CEOs say their organization
must take advantage of technologies that are changing faster than
people can adapt.
CEOs indicate the benefits of rapid technology adoption
outweigh potential risks
- More than two-thirds (68%) of CEOs surveyed agree that
governance for generative AI must be established as solutions are
designed, rather than after they are deployed.
- Although 75% of CEOs surveyed say trusted 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 CEO respondents say they will take
more risk than the competition to maintain competitive edge, with
half (51%) agreeing that the risk of falling behind is driving them
to invest in some technologies before they have a clear
understanding of the value1.
- 67% of surveyed CEOs say the productivity gains from automation
are so great that they must accept significant risk to stay
competitive.
- While today 71% of surveyed CEOs are no further than generative
AI piloting and experimentation, 49% expect to be driving growth
and expansion by 2026.
Product and service innovation is a top priority, but a
focus on short-term targets might be hindering long-term
progress
- CEOs surveyed ranked product and service innovation as their
highest 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, a majority of CEOs surveyed point to a focus on
short-term performance as their top barrier to innovation.
- Today, only 36% of the CEOs surveyed are primarily funding
their generative AI investments with net new IT spend, with the
remaining 64% reducing other technology spend1.
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 over 30 countries and 26 industries from
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, partnering,
regulation, industry disruption and enterprise transformation.
The IBM Institute for Business Value, IBM's thought leadership
think tank, combines global research and performance data with
expertise from industry thinkers and leading academics to deliver
insights that make business leaders smarter. For more world-class
thought leadership, visit: www.ibm.com/ibv.
1Unpublished data from the IBM Institute for
Business Value 2024 CEO Study
About IBM
IBM is a leading provider of global hybrid
cloud and AI, and consulting expertise. We help clients in more
than 175 countries capitalize on insights from their data,
streamline business processes, reduce costs and gain the
competitive edge in their industries. Thousands of government and
corporate entities in critical infrastructure areas such as
financial services, telecommunications and healthcare rely on IBM's
hybrid cloud platform and Red Hat OpenShift to affect their digital
transformations quickly, efficiently and securely. IBM's
breakthrough innovations in AI, quantum computing,
industry-specific cloud solutions and consulting deliver open and
flexible options to our clients. All of this is backed by IBM's
long-standing commitment to trust, transparency, responsibility,
inclusivity and service. Visit www.ibm.com for more
information.
Media Contact
Marisa
Conway
IBM Communications
conwaym@us.ibm.com
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