CEOs Are Betting Big on AI

A new global study by the IBM Institute for Business Value found that surveyed CEOs are committed to advancing AI solutions across their organization even as they face challenges from accelerating technology adoption.

The IBM CEO study, which surveyed 2,000 CEOs worldwide, reveals that executive leaders expect AI investments to more than double in the next two years, with 61% actively adopting AI agents today and preparing for large-scale implementation.

Key Findings from the IBM CEO Study

1. AI Investments Are Accelerating, But ROI Remains a Challenge

   • Only 25% of AI initiatives have delivered expected ROI in recent years.

   • Just 16% have scaled enterprise-wide.

   • Yet, 85% of CEOs expect AI efficiency investments to yield positive ROI by 2027.

2. Data Integration Is Critical for AI Success

   • 68% of CEOs say an integrated enterprise-wide data architecture is essential for AI adoption.

   • 72% believe their proprietary data is key to unlocking generative AI’s value.

   • However, 50% admit their tech infrastructure is disconnected due to rapid investments.

3. Balancing Short-Term ROI vs. Long-Term Innovation

   • 65% of CEOs prioritize AI use cases based on ROI.

   • 67% say more budget flexibility is needed to drive long-term innovation.

   • 59% struggle to balance funding for operations and innovation during disruptions.

4. Talent and Leadership Are Pivotal for AI Growth

   • 69% say success depends on leaders with deep strategic understanding.

   • 54% are hiring for AI roles that didn’t exist a year ago.

   • 31% of the workforce will require retraining/reskilling in the next three years.

CEOs Must Embrace Risk to Stay Competitive

IBM Vice Chairman Gary Cohn emphasises:

“As AI adoption accelerates, creating greater efficiency and productivity gains, the ultimate pay-off will only come to CEOs with the courage to embrace risk as opportunity… Today’s leaders who aren’t leveraging AI and their own data to move forward are making a conscious business decision not to compete.”

Similarly, Stephen J. Rich, Chairman & CEO of Mutual of America Financial Group, states:

“Pessimists sound smart, but optimists make money. I think there are opportunities when there are market dislocations, and if you feel like you have an information advantage, you should lean into risk.”

The Path Forward: AI-First Leadership

To capitalize on AI’s potential, CEOs must:

• Integrate enterprise-wide data to fuel AI adoption.
• Balance short-term ROI with long-term innovation.
•  Invest in AI talent and leadership development.
•  Embrace strategic risk-taking to stay ahead of disruption.

Mohamad Ali, IBM Consulting SVP, adds:

“Organisations that keep innovating, especially during uncertainty, will emerge stronger and better positioned for new opportunities.”

Conclusion: The AI Revolution Is Here, Will Your Business Lead or Lag?

The IBM study confirms that global CEOs are doubling down on AI, but success hinges on data strategy, talent, and bold leadership. Companies that act decisively will gain a competitive edge, while those hesitating risk falling behind.

Are you ready to transform your business with AI?