According to the findings, 68% of CEOs surveyed believe an integrated enterprise-wide data architecture is critical for cross-functional collaboration and 72% see their organization’s proprietary data as key to making the most of generative AI. However, the study suggests that organizations are struggling to create an effective data environment: Half (50%) of respondents acknowledge that the pace of recent investment has left their organization with a disparate, uncoordinated technology infrastructure.
In the foreword to the study, IBM Vice Chairman Gary Cohn writes: , “As the use of AI leads to greater efficiency and productivity gains at an accelerating pace, only those CEOs who have the courage to embrace risk as a business opportunity will ultimately benefit. This means that they need to focus on what they can control, especially when there are so many uncontrollable aspects. When the business environment is uncertain, using AI alongside your business data to identify where you can add critical value is a competitive advantage. Executives who don’t use AI with their own data to drive progress are making a conscious business decision against their own competitiveness.”
“CEOs must balance the pressure for short-term ROI with the need for long-term investment in innovation when adopting AI,” said Mohamad Ali, senior vice president and head of IBM Consulting. “But we know that companies that remain innovative, especially in uncertain times, will emerge stronger and better able to capitalize on new business opportunities.”
Other key findings include:
CEOs are under conflicting pressures to deliver ROI in the short term and invest in innovation for the long term
- The CEOs surveyed report that only 25% of AI initiatives in recent years have delivered the expected ROI, and only 16% have achieved company-wide scaling.
- To accelerate progress, two-thirds (65%) of CEOs surveyed say their organization is considering AI use cases based on ROI. 68% of respondents report that their organization has clear metrics in place to effectively measure the ROI of innovation.
- Just over half (52%) of CEOs surveyed report that their organization is realizing benefits from investments in generative AI beyond cost reduction.
- 64% of CEOs surveyed admit that the risk of being left behind by competitors is driving investment in some technologies before they have a clear understanding of the value they bring to the business. However, only 37% believe it is better to go “fast and wrong” than “right and slow” when it comes to technology adoption.
- 59% of CEOs surveyed admit that their organization struggles to balance funding existing operations and investing in innovation when unexpected changes occur. 67% say more budget flexibility is needed to capitalize on digital business opportunities that drive long-term growth and innovation.
- By 2027, 85% of CEOs surveyed expect their investments in scaled AI efficiency and cost savings to yield a positive ROI, while 77% expect a positive return from their investments in scaled AI growth and expansion.
CEOs see strategic leadership and specialized talent as essential to unlocking the value of AI given the shortage of expertise and skills
- 69% of CEOs surveyed say their company’s success is directly related to retaining a diverse group of leaders who have a deep understanding of strategy and the authority to make key decisions.
- 67% of CEOs surveyed say differentiation depends on having the necessary expertise in the right positions with the right incentives.
- CEOs cite lack of collaboration across organizational structures, aversion to risk and change, and lack of expertise and knowledge as the biggest barriers to innovation in their company.
- CECEOs surveyed say about one-third (31%) of the workforce will need to be retrained and/or reskilled in the next three years, while 65% say their company will use automation to fill skills gaps.
- 54% of CEOs surveyed say they are filling positions in AI that did not exist a year ago.
For the full study, visit https://www.ibm.com/thought-leadership/institute-business-value/en-us/c-suite-study/ceo
*Study methodology
The IBM Institute for Business Value, in collaboration with Oxford Economics, surveyed 2,000 CEOs from 33 countries and 24 industries between February and April 2025. The survey questions covered several key areas, including business performance, strategic priorities and innovation challenges. The survey also explored how organizations are managing change, using technology such as AI, decision making, leadership approaches, talent strategies, cultural readiness for transformation, collaboration efforts and regulatory concerns.
The IBM Institute for Business Value, IBM’s thought leadership think tank, combines
global research and performance data with the expertise of industry thought leaders and leading academics to provide insights that make leaders smarter. For more world-class thought leaders, visit www.ibm.com/ibv. For more insights, subscribe to the IdeaWatch newsletter: https://ibm.co/ibv-ideawatch.
Information about IBM
IBM is a leader in global hybrid cloud and AI and consulting. We help clients in more than 175 countries commercialize insights from their data, optimize business processes, reduce costs and remain leaders in their industries. Thousands of government agencies and organizations in critical infrastructure sectors such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift for fast, efficient and secure digital transformation. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting provide open and flexible options for our clients. All underpinned by IBM’s long-standing commitment to trust, transparency, accountability, inclusion and service.
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Further links
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