Did you know CEOs Struggle with AI Integration: 68% Seek Data Frameworks, 59% Face Funding Challenges

 

A new survey from IBM, which interviewed 2,000 CEOs globally, sheds light on the mixed results of AI investments in the business world. The findings reveal that while AI holds significant promise, it is far from a guaranteed success. Only 25% of AI projects have delivered the expected return on investment, despite widespread interest in the technology.

One key takeaway from the survey is that while 61% of CEOs are already using AI agents and planning to scale their efforts, a significant challenge remains: many organizations are still grappling with disconnected technology. Half of the CEOs surveyed noted that their fast-tracked AI adoption has left them with fragmented systems that don’t communicate effectively. This struggle is compounded by the fact that 68% of CEOs see a strong, integrated data framework as essential for cross-functional collaboration, but building such systems remains a daunting task.

Interestingly, more than half (52%) of executives said they were seeing value from generative AI investments beyond cost reductions, but much of this drive is fueled by the fear of falling behind. About 64% of CEOs admitted they are jumping into AI projects before fully understanding their value. However, 37% of respondents said they prefer fast action, even if it means making mistakes along the way, rather than taking their time.

Funding AI initiatives is also a challenge. With 59% of CEOs admitting they struggle to balance investments in ongoing operations with long-term innovation, the pressure is mounting to make smarter decisions. Nearly 67% say their organizations need more flexibility in their budgets to seize digital opportunities and spur growth.

Workforce challenges are also a concern, with 31% of the global workforce expected to need retraining or reskilling in the next three years. To meet the demands of the growing AI field, 54% of CEOs are hiring for positions related to AI that didn’t even exist a year ago. This highlights a rapidly evolving job market where new expertise is essential for staying competitive.

Despite these hurdles, CEOs are optimistic. By 2027, 85% expect a positive return on investment from their AI efficiency and cost-saving efforts, and 77% believe their AI investments will lead to substantial growth and expansion.

IBM’s study paints a picture of an ambitious but challenging journey ahead for many businesses as they try to harness the potential of AI. While the short-term results may be mixed, executives are betting on AI’s long-term benefits, with strategic leadership and a well-trained workforce seen as key ingredients for success.