IBM: CEOs Embrace the Use of Generative AI

A new global study from IBM, the Institute for Business Value, found that nearly half of surveyed CEOs identify productivity as their highest business priority, up from sixth place in 2022.

They recognize that modernizing technology is key to achieve their productivity goals, ranking it as the second highest priority. However, CEOs may face key barriers in their race to modernize and embrace new technologies like generative AI.

The annual CEO study, CEO Decision Making in the Age of AI, Acting with Intent, found that three-quarters of CEOs surveyed believe that competitive advantage will depend on who has the most advanced generative AI.

However, executives are also weighing the potential risks or barriers of the technology, such as bias, ethics, and security. More than half (57%) of the CEOs surveyed are concerned about data security and 48% worry about data bias or accuracy.

There is also a disconnect between CEOs and their teams when it comes to AI readiness. Half (50%) of the CEOs surveyed report that they are already integrating generative AI into products and services, and 43% say they are using generative AI to inform strategic decisions. Yet only 29% of their executive teams agree they have the in-house expertise to embrace generative AI; Only 30% of non-CEO senior executives surveyed say their organization is ready to adopt generative AI responsibly.

"Generative AI can lower the barriers to AI adoption and half of the CEOs interviewed are actively exploring it to drive a new wave of productivity, efficiency and service quality across industries," said Jesús Mantas, Managing Partner IBM Consulting Global. "CEOs should assess their company's requirements around data privacy, intellectual property protection, security, algorithmic accountability, and governance to plan their deployment of emerging generative AI use cases at scale." ".

Nearly half (48%) of CEOs surveyed identify productivity as a top priority for their organization, up from sixth in 2022; Technology modernization remains their second highest priority (45%), but CEOs also list this as 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.

When asked which C-Suite members will make the most important decisions in the next three years, the CEOs surveyed identified COOs (62%) and CFOs (52%).

The influence of technology leaders on decision making is growing: 38% of CEOs surveyed point to CIOs (up from 19% a year ago), followed by CTO or CIO (30% ) as the most crucial decision makers in their organization. .

CEOs indicate they are ready to embrace generative AI, but other executives have reservations

Three in four (75%) CEOs surveyed believe that the organization with the most advanced generative AI will have a competitive advantage.

Half (50%) of CEOs report that they are already integrating generative AI into products and services; 43% say they use generative AI to inform strategic decisions, and 36% use technology for operational decisions.

While 69% of CEOs surveyed see broad benefits from generative AI throughout their organization, only 29% of their executive teams agree they have the in-house expertise to adopt generative AI.

Only 30% of non-CEO senior executives surveyed say their organization is ready to adopt generative AI responsibly.
Generative AI is driving changes in the workforce, but broader assessments of its impact on the workforce are lagging

Some 43% of CEOs surveyed say they have reduced or redeployed their workforce due to generative AI, with an additional 28% indicating they plan to do so in the next 12 months.

At the same time, 46% of CEOs surveyed have hired additional workers due to generative AI, and 26% say they have plans to hire more in the future.

However, fewer than one in three CEOs (28%) surveyed have evaluated the potential impact of generative AI on their workforce, and 36% say they plan to do so in the next 12 months.