Chief executives around the world expect the growth rate of artificial intelligence (AI) investments to more than double in the next two years, according to a new survey.
The latest IBM Institute for Business Value study, surveying 2,000 CEOs, revealed that 61% of business leaders are actively deploying AI agents, preparing to scale them across their organisations. But as the pressure mounts to innovate, many CEOs are also confronting the realities of fragmented tech ecosystems, data silos and the challenge of demonstrating return on AI investment.
The research, which spans sectors and geographies, highlights a pivotal shift: AI is no longer viewed as a speculative frontier – it’s a core pillar of enterprise strategy. Despite the surge in enthusiasm, results are mixed. Only 25% of AI initiatives have delivered expected ROI so far, and a mere 16% have scaled organisation-wide. The gap between ambition and execution is pushing CEOs to rethink their approach.
“CEOs are balancing the pressures of short-term ROI with the need to invest in long-term innovation,” said Mohamad Ali, SVP and Head of IBM Consulting. “But we know that organisations that keep innovating – especially during uncertainty – will emerge stronger and more resilient.”
In response, 65% of CEOs are now prioritising AI initiatives that deliver measurable ROI, and 68% say they’ve established clear innovation metrics to better assess impact. Still, only 37% believe it’s better to be ‘fast and wrong’ than ‘right and slow,’ highlighting an ongoing internal tension between bold experimentation and calculated risk.
THE DATA DISCONNECT
Data is the lifeblood of generative AI – but most organisations aren’t managing it well, noted the survey. While 72% of CEOs recognise their proprietary data as a competitive advantage, half admit their tech stacks are disconnected and fragmented, hampering enterprise-wide collaboration. And 68% say integrated data architecture is essential, but progress is slow.
This mismatch between vision and infrastructure may limit the transformative potential of AI, especially as companies look to automate workflows, personalise customer experiences, and uncover new growth opportunities.
THE TALENT AND TECH LINK
Beyond technology, talent and leadership are emerging as critical enablers of AI success, according to the report. Nearly seven in 10 CEOs say their organisation’s performance depends on a diverse group of empowered leaders who understand strategy and can act decisively. And 67% believe competitive edge hinges on having the right expertise in the right roles – a challenge in today’s talent-constrained market.
As AI roles multiply, 54% of CEOs say they are hiring for roles that didn’t exist last year, and companies are racing to close skills gaps through retraining, reskilling and automation. The study found that 31% of the workforce will require significant upskilling over the next three years, and 65% of CEOs are leaning on automation to help bridge that gap.
RACE FOR SURVIVAL
For CEOs, the AI race is about more than technology – it’s about survival. “As AI adoption accelerates, the ultimate payoff will come to those with the courage to embrace risk as opportunity,” said Gary Cohn, IBM Vice Chairman. “In an uncertain environment, using AI and your enterprise data to identify leverage points is a competitive advantage. Leaders who aren’t doing that are making a conscious decision not to compete.”
Looking ahead, CEOs are optimistic. By 2027, 85% expect positive ROI from scaled AI efficiency gains, and 77% anticipate meaningful returns from AI-led growth and expansion initiatives. But optimism alone won’t close the execution gap. As the pace of innovation quickens, CEOs will need to build flexible budgets, empower cross-functional leadership, and double down on AI talent – not just tools – to unlock the real value of AI, noted the report.
To view the full study, click here.
RELATED ARTICLES
Organisations embracing artificial intelligence (AI) and investing in workforce upskilling are seeing dramatic productivity gains of over 30%, reveals report.
A new study has confirmed the growing adoption of AI across industries, but also highlights a lack of responsible AI practices.
Top business concerns for 2025: Trade wars, recession and AI.
How tech can create new market opportunities worth US$15 trillion, while driving sustainable development and helping to create a secure and better future for all.
Sign up for our newsletter
