The majority of CEOs are not fully convinced of the benefits of generative AI and believe it will take at least two years to see tangible business benefits. A survey conducted by the Boston Consulting Group found that 71% of executives are focused on limited experimentation and small-scale pilots with generative AI. Despite this skepticism, companies are increasing their AI spending, with 71% of executives planning to increase overall tech investments and 85% intending to increase spending on AI specifically. However, many CEOs are dissatisfied with their organization’s progress on AI due to a lack of talent, skills, and unclear investment priorities. Despite the concerns, companies that are investing heavily in generative AI anticipate significant cost savings and are more optimistic about the business benefits. A separate report from PwC showed that some CEOs have already adopted generative AI or adjusted their IT strategy as a result. However, there is also a fear of job losses due to generative AI, with one-quarter of CEOs expecting to reduce headcount by at least 5% in 2024. Overall, companies are still in the early stages of adopting generative AI and are working to align it with their existing digital and AI strategies.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Most CEOs skeptical of generative AI benefits | Perception of generative AI | Executives embrace generative AI benefits | Lack of tangible benefits |
| Executives focus on small-scale experiments with generative AI | Approach to generative AI | Increased adoption of generative AI | Uncertainty and skepticism about benefits |
| Companies ramp up AI spending, prioritize AI as a top-three tech priority | Investment in AI | Increased AI adoption and integration | Potential for cost savings and improved products/services |
| CEOs dissatisfied with AI progress, lack of talent and skills | Progress on AI | Enhanced talent and skill development | Skill shortage and unclear roadmap |
| Executives anticipate job losses due to generative AI adoption | Workforce impact | Job loss offset by job creation | Balancing short-term job losses and long-term potential |