Artificial Intelligence (AI) is a game-changing technology that’s transforming businesses across the sector. A global study by the IBM Institute for Business Value, released on May 6, 2025, dives deep into how CEOs worldwide are doubling down on investments in AI, even as they wrestle with some challenges. The findings are both exciting and sobering, offering a glimpse into the high-stakes world of enterprise AI adoption.
The AI Boom: CEOs Are All In
IBM’s study, which surveyed 2,000 CEOs from 33 countries and 24 industries, indicates that AI is no longer a “nice-to-have” but a strategic priority. A whopping 61% of CEOs said they’re actively adopting AI agents, think intelligent systems that can automate tasks and make decisions. Even more striking, executives expect the growth rate of AI investments to more than double over the next two years. It is not just optimism; it’s a full-on commitment to transforming their businesses with the power of AI.
Why the urgency? The study shows that 85% of CEOs expect positive returns on investment (ROI) from AI by 2027. However, only 25% of current AI projects are delivering the expected ROI, and just 16% have scaled enterprise-wide. So, what’s holding things back?
The Data Dilemma: A House Divided
If AI is the engine, data is the fuel—and right now, many organizations are running on fumes. The study highlights that 72% of CEOs see their proprietary data as the key to unlocking generative AI’s potential.
Generative AI thrives on well-organized and high-quality data. Yet, 50% of respondents acknowledged that rapid investments have fragmented their tech stacks, with disconnected systems that hinder progress.
The study found that 68% of CEOs view an integrated, enterprise-wide data architecture as critical for cross-functional collaboration. Without it, teams are stuck in silos, unable to share insights or leverage AI effectively. This disconnect isn’t just a technical issue—it’s a strategic one that could make or break AI’s impact.
Talent and Culture: The Human Side of AI
It’s not just about tech. The study also shines a light on the human challenges of AI adoption. For one, 54% of CEOs are hiring for AI-related roles that didn’t even exist a year ago. Think data scientists, AI ethicists, and machine learning engineers. Meanwhile, 31% of their workforce needs retraining over the next three years to keep up with the AI revolution. That’s a massive undertaking, especially when 53% of CEOs already struggle to fill key tech roles.
Then there’s the cultural hurdle. Scaling AI requires a mindset shift across the organization. As Matt Candy, Global Managing Partner at IBM Consulting, noted in a related study, “Without the right people and culture in place, progress will be slow.” Employees need to trust AI tools and feel comfortable integrating them into their workflows. Yet, some CEOs are pushing adoption faster than their teams can handle, which risks resistance and burnout.
Risk as Opportunity: A New Mindset
Despite these challenges, CEOs aren’t backing down. IBM Vice Chairman Gary Cohn’s perspective, highlighted in the study, sums it up: “Embracing risk as opportunity” is the new mantra. CEOs are starting to see AI not just as an application for cutting costs but as a strategic differentiator that can set their companies apart. For example, 52% of CEOs report that their organizations are already seeing value from generative AI beyond cost reduction, like improving decision-making or sparking innovation.
This shift in thinking is crucial. The study suggests that companies willing to navigate the risks—whether it’s investing in data infrastructure, upskilling talent, or rethinking workflows—stand to gain a competitive edge. Those who hesitate, however, risk falling behind in an increasingly AI-driven world.
The Bottom Line
The IBM research indicates that CEOs are making significant investments in AI, yet the journey to success is filled with obstacles. Challenges such as disjointed technology systems and talent shortages are real, but so are the prospects. Organizations that can connect their aspirations with effective implementation will be the ones defining what’s next. As AI progresses, one thing is evident: the competition is fierce, and retreating is not an option.
Also Read: Why Privacy-First AI is the Key to Responsible Innovation
