A new IBM study found that 75% of CEOs are pursuing AI, but only 30% of teams believe their companies are ready. Getty Images
good morning.
Generative AI has taken C-suite executives by storm in the last six months, as evidenced by new research released today by IBM. Nearly 75% of the more than 3,000 global CEOs surveyed said they believe future competitive advantage will be given to companies that lead in AI. The competition is on for them.
Of course, forward-thinking CEOs have known for several years that a new generation of technologies such as cloud computing, data explosion, and machine learning will transform their companies and industries. But ChatGPT Indicated It has the power to spark the imagination in ways no technology tool has ever been able to. Very intuitive and easy to use even for CEOs. I spent several hours this weekend discussing ideas for growing Fortune Media with Bard at Google. And Bard’s idea wasn’t half bad. And much cheaper than hiring a consultant.
But the ease of use of generative AI also highlights its limitations. It provides speculation based on public information and cannot be calculated or verified as fact. That’s probably why there’s such a disconnect between CEOs and their teams, according to IBM research. While his 75% of CEOs are working towards transformation, only his 30% of his team members believe the organization is ready for transformation and have the necessary skills. Only 29% of them believe that “There’s a big disconnect between what the CEO says and what the team says,” IBM’s Jesus Mantas told me. Additionally, concerns about data security, data accuracy, and so-called “hallucinations,” a technology-invented tendency, remain high. As CaixaBank CEO Gonzalo Gortazar told his IBM team, “Generative AI models surprise, inspire, and scare us all at the same time.”
CEOs say productivity gains are the biggest reason for adopting AI, but the impact on jobs is controversial. About 46% said they hired additional workers because of generative AI, and 43% said they cut back on their workforce. Over the next 12 months, 26% said they would be hiring more and 28% would be hiring less. Surveys show that they are also concerned about a steadily growing regulatory threat.
But while the exact application remains murky, and the effect remains murky, it’s clear that CEOs are heading headlong into the future of AI. “This is a leap forward,” says Mantas.
You can read the full study here. More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
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This issue of CEO Daily was curated by Nicholas Gordon.
