Half (50%) of CEOs surveyed say they are already integrating generative AI into digital products and services, but more than half (57%) of CEOs surveyed are concerned about data security and 48% are concerned about bias or data accuracy
Fewer than one in three (28%) CEOs surveyed have assessed the potential impact of Generative AI on their workforce, and 36% say they plan to do so in the next 12 months
June 27, 2023
ARMONK, NY, June 27, 2023 /PRNewswire/ — A new global study from the IBM (NYSE: IBM) Institute for Business Value found that nearly half of CEOs surveyed identify productivity as their top business priority, up from sixth place in 2022. They acknowledge that modernization of technology is the key to achieving your productivity goals, ranking it as the second highest priority. However, CEOs can face major hurdles as they race to modernize and adopt new technologies like generative AI.
The annual CEO study*, CEO Decision Making in the Age of AI, Acting With Intention, found that three-quarters of CEOs surveyed believe competitive advantage will depend on who has the most advanced generative AI. However, executives are also weighing potential risks or barriers of the technology such as bias, ethics and safety. More than half (57%) of CEOs surveyed are concerned about data security, and 48% are concerned about data bias or accuracy.
There is also a disconnect between CEOs and their teams when it comes to AI readiness. Half (50%) of CEOs surveyed say they are already integrating Generative AI into products and services, and 43% say they use Generative AI to make strategic decisions. However, only 29% of their executive teams agree they have the in-house expertise to adopt Generative AI; Only 30% of senior non-CEO executives surveyed say their organization is ready to responsibly adopt Generative AI.
“Generative AI can reduce barriers to AI adoption, and half of the CEOs surveyed are actively exploring it to drive a new wave of productivity, efficiency and service quality across industries,” said Jesus Mantas, Global Managing Partner, IBM Consulting. “CEOs need to evaluate business requirements around data privacy, intellectual property protection, security, algorithmic accountability, and governance in order to plan their implementation of emerging use cases of generative AI at scale.”
The main findings of the study include:
CEOs say productivity, and the technology that will help deliver it, is a pressing priority
- Nearly half (48%) of CEOs surveyed identify productivity as a top priority for their organization, up from sixth place in 2022; technology modernization follows as a second priority (45%), but CEOs also indicate that this is one of their top challenges.
- For the fourth year in a row, CEOs surveyed say technology factors remain the top external force impacting their organization over the next three years.
CEOs are increasingly looking to operational, technology and data leaders as strategic decision makers
Additional data collected during the survey indicates the following:
- When asked which C-Suite members will make the most crucial decisions over the next three years, surveyed CEOs identified COO (62%) and CFO (52%).
- The influence of technology leaders on decision-making is growing: 38% of CEOs surveyed cite CIOs (up from 19% a year ago), followed by Chief Technology or Chief Digital Officers (30%) as the most decision makers crucial in their organization .
CEOs indicate they’re ready to embrace generative AI, but other executives have reservations
- Three out of four CEOs (75%) surveyed believe that the organization with the most advanced generative AI will have a competitive advantage.
- Half (50%) of CEOs say they are already integrating generative AI into products and services; 43% say they use generative AI to inform strategic decisions, with 36% using the technology for operational decisions.
- While 69% of CEOs surveyed see broad benefits of Generative AI across their organization, only 29% of their executive teams agree they have the internal expertise to adopt Generative AI.
- Only 30% of senior non-CEO executives surveyed say their organization is ready to responsibly adopt Generative AI.
Generative AI is fueling workforce change, but broader assessments of its impact on the workforce are lagging behind
- About 43% of CEOs surveyed say they have reduced or redeployed their workforce due to generative AI, with a further 28% indicating they plan to do so in the next 12 months.
- At the same time, 46% of CEOs surveyed have hired more workers thanks to Generative AI, with 26% saying they have plans for more hiring in the offing.
- However, fewer than one in three (28%) CEOs surveyed have assessed the potential impact of generative AI on their workforce, and 36% say they plan to do so in the next 12 months.
To view the complete study, visit: https://ibm.co/c-suite-study-ceo.
To learn more about the top trends and strategic bets business leaders are making to increase productivity, visit https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/seven -bets.
* Study methodology
The IBM Institute for Business Value, in collaboration with Oxford Economics, surveyed 3,000 CEOs from more than 30 countries and 24 industries as part of the 28th edition of the IBM C-Suite Study Series. These conversations focused on executives’ perspectives on leadership and business; their changing roles and responsibilities; and CEO decision-making today, including key challenges and opportunities, their use of technology, data and metrics, and their visions for the future. The IBM Institute for Business Value also conducted a survey of 200 CEOs in the United States on their responses to generative AI.
The IBM Institute for Business Value, IBM’s thought leadership think tank, combines global research and performance data with the expertise of leading academics and industry thinkers to provide insights that make business leaders smarter. For additional world-class thought leadership, visit: www.ibm.com/ibv.
IBM is a leading provider of global hybrid cloud and AI and consulting expertise. We help clients in more than 175 countries leverage insights from their data, streamline business processes, reduce costs, and gain competitive advantage in their industries. More than 4,000 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 impact their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in artificial intelligence, quantum computing, industry-specific cloud solutions, and consulting offer open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, accountability, inclusiveness and service. Visit www.ibm.com for more information.
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