According to new Ernst & Young research, 47% of CEOs are focused on AI transformation and plan to invest in the technology over the next 12 months. Andrea Guerzoni, Global Vice Chairman, Strategy and Transactions, EY, appears on Catalysts to share insights into CEO optimism regarding AI transformation and its impact on productivity.
Guelzoni explains where executive enthusiasm for AI comes from: “The realization that managing this complexity can actually achieve great results, and that focusing on reducing costs, reducing operational complexity, and streamlining the company's portfolio is the right strategy to get the same results. And addressing this complexity, and especially the impact of AI, as they've done in the past, can have a huge impact on improving productivity and actually ensuring that the bottom line meets analyst expectations.”
To learn more about expert insights and the latest market trends, click here to watch this full episode of Catalysts.
This post Nicholas Jacobino
Video Transcript
CEO S has prioritized AI transformation with the aim of increasing productivity and growth in the coming quarters.
According to a new Ernst & Young survey of CEO sentiment, about 47% are focused on AI transformation.
So can you tell us more about how business owners feel about the future?
We have Andreoni, who was the global vice chair of strategy and execution, and Andrea.
Thank you very much for taking the time to complete this survey.
What's interesting is you have so much data on how CEOs are feeling about the market overall, how they're feeling about the IESG, etc. Can you tell us what the biggest data point is that suggests to you that CEOs are more optimistic heading into the rest of the year than they were in the past?
hello everyone.
And thank you for inviting me.
Yeah, I think that's probably the most remarkable piece of information that we've collected through the Joint Outlook Survey.
The reality is that there is a certain understanding that the complex situation of the past 18 months – geopolitical tensions, uncertainty around interest rates and the impact of new technologies, including AII – is something banks will have to deal with for the foreseeable future.
So there was an understanding that this is the future and that we have to deal with this level of complexity, and I think that has increased optimism.
In fact, our services research shows that over 60% of CEOs believe their revenue levels have increased.
Well, 65% actually think they will be more profitable next year.
So, despite the uncertainty and the complex environment, the levels are rising and I think there are new possibilities beyond AI and opportunities for growth there.
What else do you think is the reason for that optimism?
I think it's the recognition that you can actually achieve great results by managing this complexity, and reducing business complexity, focusing on cost savings, and streamlining your company's portfolio — that's the right strategy to get to the same results.
And they, they've done that in the past, but dealing with this complexity and the impact of AI in particular can be huge in terms of improving productivity and actually ensuring that the end results are aligned with the analyst's expectations.
And the past 12 months have demonstrated that AI can truly be a game-changer in this regard.
And this is probably just the tip of the iceberg.
I think the most sophisticated companies are looking at AI not just from a productivity standpoint, but also from a perspective of actually improving top-line revenue and changing the way they do business more strategically going forward.
Well, there's a lot of positives here, but I also want to touch on some negatives that may be of particular concern to CEO S. Specifically with regard to cyber security, I was surprised by the survey results that showed that when it comes to cyber threats, only one in five chief information security officers and C-suite executives believe their approach is effective against the challenges of today and tomorrow.
So what do the survey findings tell us about how executives are preparing for that, and how AI might help them do that?
I think this speaks volumes about the complexity of the current environment, where companies are undergoing rapid digital transformation.
And this clearly presents huge opportunities in many ways, including operational efficiency, understanding customer preferences, delivering the right product at the right time, managing inventory, and more.
But at the same time, going all digital exposes organizations to a wider range of threats, making maintaining a high level of security and preventing data breaches a top priority for everyone.
This is evolving very quickly, it consumes huge resources that require very specialized talent, and it's really an organization-wide issue.
That's why Andrea Garzon Eye, global vice chairman of strategy and trading, is so concerned.
We are delighted that you have joined.
thanks so much.
you're welcome.
