Businesses are adopting generative AI to improve productivity. According to an IBM study, about 50% of the CEOs surveyed said they have integrated AI into their decision-making and products. However, only 30% of the executive teams said their companies are ready for the technology.
IBM Institute for Business Value, an IBM think tank, released the annual CEO study titled CEO Decision-making in the Age of AI on June 27. Cooperating with Oxford Economics, the think tank interviewed 3,000 CEOs from 24 industries globally. The study also included a survey of 200 CEOs in the US on their responses to generative AI.
According to IBM Institute for Business Value, three-quarters of CEO respondents believe that advanced generative AI will create the most competitive advantages for businesses.
Half of the CEOs said they are integrating generative AI into products and services, the study showed. About 43% said they are using the technology to inform strategic decisions.
Their executive members have a different view. According to the study, only 29% of the executive members said their companies have the in-house expertise to adopt generative AI. About 30% of the non-CEO senior executives said their organization is ready to use generative AI responsibly.
IBM Institute for Business Value said the survey showed two out of the three CEOs are acting without a clear view of how to help their teams deal with the disruptions AI will bring.
As AI is gaining momentum, more than half of the CEOs interviewed said they are concerned about data security and 48% worry about bias or data accuracy.
Noriya Kaihara, American Honda Motor's president and CEO, said businesses care more about if AI can help people get things done and achieve their potential. But they are also always thinking about the consequences of using each technology.
Jesus Mantas, a global managing partner for IBM Consulting, said CEOs need to assess company requirements around data privacy, intellectual property protection, security, algorithmic accountability and governance to scale up generative AI adoption,
Companies have adjusted their workforce due to AI adoption. According to the study, 43% of the CEOs said they have reduced or redeployed their staff, while 28% plan to do so in the next 12 months. Close to 50% of them said they have hired more workers because of generative AI.
