CEOs Advancing AI Solutions At Speed, But Result Is Disconnected Technology: IBM Study

Despite the difficulties posed by the rapid adoption of technology, especially artificial intelligence, company CEOs are dedicated to promoting AI solutions throughout their organisation.

According to a new study by IBM, executives expect the growth rate of AI investments to more than double in the next two years, and 61% said they are actively adopting AI agents and preparing to implement them at scale. However, 50% report that rapid investment has resulted in disconnected technology within their organisation.

The study, which surveyed 2,000 CEOs globally, also found that 68% identified integrated enterprise-wide data architecture as critical for cross-functional collaboration, and 72% viewed their organisation’s data as key to unlocking the value of generative AI. 

However, organisations may be struggling to cultivate an effective data environment: half of the respondents acknowledged that the pace of recent investments has left their organisation with disconnected, piecemeal technology.

According to CEOs surveyed, only 16% of AI programmes have scaled enterprise-wide, and only 25% have produced the anticipated return on investment during the past three years. Around two-thirds (65%) said their company is leaning into AI use cases based on ROI to expedite progress, and 68% believe their company has clear metrics to measure innovation ROI effectively.

Just over half (52%) of respondents said their organisation is realising value from generative AI investments beyond cost reduction. Yet, the risk of falling behind is driving investment in some technologies before a clear understanding of theirs, which was acknowledged by 64% of CEOs.

By 2027, 85% of surveyed CEOs expect their investments in scaled AI efficiency and cost savings to return a positive ROI, while 77% expect to see a positive ROI in scaled AI growth and expansion.

To unlock value from AI, 69% of CEOs said success is linked to strategic leadership and the authority to make critical decisions. Those surveyed cited lack of collaboration across organisational silos, aversion to risk and disruption, and lack of expertise and knowledge as top barriers to innovation.

Over half (54%) of respondents said they are hiring for roles related to AI that did not exist a year ago. At the same time, CEOs said roughly one-third (31%) of the workforce will require retraining and/or reskilling over the next three years, while 65% will choose automation to address skill gaps.