Inspiring a shared vision and fostering collaboration across departments, such as finance and technology, will be essential for a smooth transition. Overall, CEOs say 35% of their workforce will need to retrain and reskill over the next three years, up from just 6% in 2021.
A workforce transformation is on the way
58% of CEOs are hiring for generative AI roles that didn't exist last year, but more than half have yet to assess the impact on talent. 35% expect the need for reskilling or redeployment within three years. AI talent is hard to source, with 50% struggling to fill key technical roles.
Governance gaps increase risk
75% agree that governance should be built in at design time, not later, yet only 35% currently have robust generative AI governance in place. 71% say trustworthy AI requires effective governance, yet 64% are willing to take on greater risks than competitors to gain an advantage. Balancing risk and reward is essential.
A short-term focus stifles long-term innovation
CEOs are prioritizing productivity and innovation, with 44% willing to sacrifice operational efficiency for greater innovation. Yet short-term performance pressure remains the biggest barrier. Finding the right balance between immediate goals and future transformation is key.
As generative AI rapidly evolves, companies face major shifts in talent needs, cultural mindsets, governance frameworks, and innovation strategies. Proactively addressing these challenges while leveraging the full potential of AI will distinguish leaders from laggards in the emerging generative AI economy.
“Our report contains six hard truths for CEOs who recognise that today's skills, processes and mindsets won't run tomorrow's business,” said Rahul Kalia, managing partner, UK and Ireland, IBM Consulting. “To transform business with technology, business must first evolve. The success of Gen AI will depend more on employee engagement and a culture of innovation than the technology itself.”
