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CEOs Double Down on AI While Navigating Enterprise Hurdles

CEOs are committed to advancing AI solutions across their organization even as they face challenges from accelerating technology adoption, according to the IBM CEO Study.

The survey revealed that executive respondents expect the growth rate of AI investments to more than double in the next two years, and 61% confirm they are actively adopting AI agents today and preparing to implement them at scale.

Image
IBM

Image Source: IBM

According to the findings, 68% of surveyed CEOs identify integrated enterprise-wide data architecture as critical for cross-functional collaboration, and 72% view their organization's proprietary data as key to unlocking the value of generative AI. However, the research indicates organizations may be struggling to cultivate an effective data environment: half (50%) of respondents acknowledge that the pace of recent investments has left their organization with disconnected, piecemeal technology.

In the foreword of the study, IBM Vice Chairman Gary Cohn writes, "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. Meaning, focusing on what you can control, especially when there is so much you can't. When the business environment is uncertain, using AI and your enterprise data to identify where you have leverage is a competitive advantage. At this point, leaders who aren't leveraging AI and their own data to move forward are making a conscious business decision not to compete."

"CEOs are balancing the pressures of short-term ROI and investing in long-term innovation when it comes to adopting AI," said Mohamad Ali, Senior Vice President and Head of IBM Consulting. "But we know that organizations that keep innovating, especially during periods of uncertainty, will emerge stronger and be better positioned to capitalize on new opportunities."

Other key findings include:

CEOs face competing pressures of short-term ROI and long-term innovation

  • Surveyed CEOs report that only 25% of AI initiatives have delivered expected ROI over the last few years, and only 16% have scaled enterprise wide. 
    To accelerate progress, two-thirds (65%) of CEO respondents say their organization is leaning into AI use cases based on ROI, with 68% reporting that their organization has clear metrics to measure innovation ROI effectively.
  • Just over half (52%) of CEO respondents say their organization is realizing value from generative AI investments beyond cost reduction.
  • 64% of CEOs surveyed acknowledge that the risk of falling behind drives investment in some technologies before they have a clear understanding of the value they bring to the organization, but only 37% say it's better to be "fast and wrong" than "right and slow" when it comes to technology adoption.
  • 59% of surveyed CEOs admit their organization struggles to balance funding for existing operations and investment in innovation when unexpected change occurs, as 67% say more budget flexibility is needed to capitalize on digital opportunities that drive long-term growth and innovation.
  • By 2027, 85% of surveyed CEOs expect their investments in scaled AI efficiency and cost savings to have returned a positive ROI, while 77% expect to see a positive return from their investments in scaled AI growth and expansion.

CEOs see strategic leadership and specialized talent as essential to unlocking AI value, amid expertise and skills gaps

  • 69% of CEO respondents say their organization's success is directly tied to maintaining a broad group of leaders with a deep understanding of strategy and the authority to make critical decisions.
  • 67% of CEOs surveyed say that differentiation depends on having the right expertise in the right positions with the right incentives.
  • CEOs cite lack of collaboration across organizational silos, aversion to risk and disruption, and lack of expertise and knowledge as top barriers to innovation in their organization.
  • Surveyed CEOs say roughly one-third (31%) of the workforce will require retraining and/or reskilling over the next three years, while 65% say their organization will use automation to address skill gaps.
  • 54% of CEO respondents say they are hiring for roles related to AI that did not exist a year ago.

Methodology: The IBM Institute for Business Value, in cooperation with Oxford Economics, surveyed 2,000 CEOs from 33 countries and 24 industries between February and April 2025.

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CEOs Double Down on AI While Navigating Enterprise Hurdles

CEOs are committed to advancing AI solutions across their organization even as they face challenges from accelerating technology adoption, according to the IBM CEO Study.

The survey revealed that executive respondents expect the growth rate of AI investments to more than double in the next two years, and 61% confirm they are actively adopting AI agents today and preparing to implement them at scale.

Image
IBM

Image Source: IBM

According to the findings, 68% of surveyed CEOs identify integrated enterprise-wide data architecture as critical for cross-functional collaboration, and 72% view their organization's proprietary data as key to unlocking the value of generative AI. However, the research indicates organizations may be struggling to cultivate an effective data environment: half (50%) of respondents acknowledge that the pace of recent investments has left their organization with disconnected, piecemeal technology.

In the foreword of the study, IBM Vice Chairman Gary Cohn writes, "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. Meaning, focusing on what you can control, especially when there is so much you can't. When the business environment is uncertain, using AI and your enterprise data to identify where you have leverage is a competitive advantage. At this point, leaders who aren't leveraging AI and their own data to move forward are making a conscious business decision not to compete."

"CEOs are balancing the pressures of short-term ROI and investing in long-term innovation when it comes to adopting AI," said Mohamad Ali, Senior Vice President and Head of IBM Consulting. "But we know that organizations that keep innovating, especially during periods of uncertainty, will emerge stronger and be better positioned to capitalize on new opportunities."

Other key findings include:

CEOs face competing pressures of short-term ROI and long-term innovation

  • Surveyed CEOs report that only 25% of AI initiatives have delivered expected ROI over the last few years, and only 16% have scaled enterprise wide. 
    To accelerate progress, two-thirds (65%) of CEO respondents say their organization is leaning into AI use cases based on ROI, with 68% reporting that their organization has clear metrics to measure innovation ROI effectively.
  • Just over half (52%) of CEO respondents say their organization is realizing value from generative AI investments beyond cost reduction.
  • 64% of CEOs surveyed acknowledge that the risk of falling behind drives investment in some technologies before they have a clear understanding of the value they bring to the organization, but only 37% say it's better to be "fast and wrong" than "right and slow" when it comes to technology adoption.
  • 59% of surveyed CEOs admit their organization struggles to balance funding for existing operations and investment in innovation when unexpected change occurs, as 67% say more budget flexibility is needed to capitalize on digital opportunities that drive long-term growth and innovation.
  • By 2027, 85% of surveyed CEOs expect their investments in scaled AI efficiency and cost savings to have returned a positive ROI, while 77% expect to see a positive return from their investments in scaled AI growth and expansion.

CEOs see strategic leadership and specialized talent as essential to unlocking AI value, amid expertise and skills gaps

  • 69% of CEO respondents say their organization's success is directly tied to maintaining a broad group of leaders with a deep understanding of strategy and the authority to make critical decisions.
  • 67% of CEOs surveyed say that differentiation depends on having the right expertise in the right positions with the right incentives.
  • CEOs cite lack of collaboration across organizational silos, aversion to risk and disruption, and lack of expertise and knowledge as top barriers to innovation in their organization.
  • Surveyed CEOs say roughly one-third (31%) of the workforce will require retraining and/or reskilling over the next three years, while 65% say their organization will use automation to address skill gaps.
  • 54% of CEO respondents say they are hiring for roles related to AI that did not exist a year ago.

Methodology: The IBM Institute for Business Value, in cooperation with Oxford Economics, surveyed 2,000 CEOs from 33 countries and 24 industries between February and April 2025.

Hot Topics

The Latest

A new wave of tariffs, some exceeding 100%, is sending shockwaves across the technology industry. Enterprises are grappling with sudden, dramatic cost increases that threaten to disrupt carefully planned budgets, sourcing strategies, and deployment plans. For CIOs and CTOs, this isn't just an economic setback; it's a wake-up call. The era of predictable cloud pricing and stable global supply chains is over ...

As artificial intelligence (AI) adoption gains momentum, network readiness is emerging as a critical success factor. AI workloads generate unpredictable bursts of traffic, demanding high-speed connectivity that is low latency and lossless. AI adoption will require upgrades and optimizations in data center networks and wide-area networks (WANs). This is prompting enterprise IT teams to rethink, re-architect, and upgrade their data center and WANs to support AI-driven operations ...

Artificial intelligence (AI) is core to observability practices, with some 41% of respondents reporting AI adoption as a core driver of observability, according to the State of Observability for Financial Services and Insurance report from New Relic ...

Application performance monitoring (APM) is a game of catching up — building dashboards, setting thresholds, tuning alerts, and manually correlating metrics to root causes. In the early days, this straightforward model worked as applications were simpler, stacks more predictable, and telemetry was manageable. Today, the landscape has shifted, and more assertive tools are needed ...

Cloud adoption has accelerated, but backup strategies haven't always kept pace. Many organizations continue to rely on backup strategies that were either lifted directly from on-prem environments or use cloud-native tools in limited, DR-focused ways ... Eon uncovered a handful of critical gaps regarding how organizations approach cloud backup. To capture these prevailing winds, we gathered insights from 150+ IT and cloud leaders at the recent Google Cloud Next conference, which we've compiled into the 2025 State of Cloud Data Backup ...

Private clouds are no longer playing catch-up, and public clouds are no longer the default as organizations recalibrate their cloud strategies, according to the Private Cloud Outlook 2025 report from Broadcom. More than half (53%) of survey respondents say private cloud is their top priority for deploying new workloads over the next three years, while 69% are considering workload repatriation from public to private cloud, with one-third having already done so ...

As organizations chase productivity gains from generative AI, teams are overwhelmingly focused on improving delivery speed (45%) over enhancing software quality (13%), according to the Quality Transformation Report from Tricentis ...

Back in March of this year ... MongoDB's stock price took a serious tumble ... In my opinion, it reflects a deeper structural issue in enterprise software economics altogether — vendor lock-in ...

In MEAN TIME TO INSIGHT Episode 15, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses Do-It-Yourself Network Automation ... 

Zero-day vulnerabilities — security flaws that are exploited before developers even know they exist — pose one of the greatest risks to modern organizations. Recently, such vulnerabilities have been discovered in well-known VPN systems like Ivanti and Fortinet, highlighting just how outdated these legacy technologies have become in defending against fast-evolving cyber threats ... To protect digital assets and remote workers in today's environment, companies need more than patchwork solutions. They need architecture that is secure by design ...