CEOs are used to being in the hot seat
Key players insights
CEOs are used to being in the hot seat. Only the toughest problems land on their desks—and how those problems are solved often defines an organization’s future.
How CEOs choose to adopt generative AI may be one of these defining moments. Making the right investments in this emerging tech could deliver a strategic advantage that pays massive dividends. But the wrong bets could open the door to data privacy concerns, legal liabilities, and a whole host of ethical issues. CEOs know they need to tread carefully, but they also feel the need to act fast. 64% say they face significant pressure from investors, creditors, and lenders to accelerate adoption of generative AI. Consequently, investment in generative AI is expected to grow nearly 4 times over the next two to three years—although it remains, at least for now, a fraction of total AI spend.What will help CEOs accelerate the adoption of generative AI? How can they scale safely and responsibly? It starts with understanding what the enterprise wants to achieve, ensuring those goals are tightly coupled with strategy, and defining what specifically needs to change to make that vision a reality. In each area of the organization, leaders need to assess where work can be streamlined and augmented—and how generative AI can be used to deliver greater value every day.CEOs also need in-depth knowledge about the risks and exposures the organization will face on this journey. Some will be similar to what they’ve seen in the past, including privacy, accuracy, explainability, and bias. But others will be entirely new. The proper oversight will be needed to correctly identify, quantify, or manage these inherent risks. However, 60% of organizations are not yet developing a consistent, enterprise-wide approach to generative AI.
Balancing risk and reward
Like other disruptive technologies, there are trade-offs that come with adopting generative AI. CEOs must balance the value generative AI can create against the investment it demands and the risks it introduces.Yet success depends on experimentation and iteration. This challenges CEOs to rethink and restructure the operating model to promote cross functional understanding of generative AI, streamline the deployment process, and ensure that business benefits are realized across the organization. To help CEOs think holistically about their approach to generative AI—and manage the rapid change it is driving across the enterprise—the IBM Institute for Business Value is releasing a series of targeted, research-backed guides to generative AI. Come back over the coming weeks for deep dives into the functional areas where generative AI is poised to make the most significant business impact.