AUGUST 27, 2024
For CIOs, artificial intelligence (AI) and generative AI are not only a hot discussion topic in 2024, but a top focus area for them. Organizations are looking to their CIOs for leadership on AI implementation, and according to our recent survey, CIOs are feeling some pressure to execute on AI initiatives and begin to realize value from them. As one CIO commented, “AI is being pushed on us and our staff so hard and fast that waiting wasn't an option.”
We recently surveyed CIOs across Evanta communities worldwide about AI adoption and how they are faring on the AI implementation journey. This year’s survey was a follow up to a previous one about AI and GenAI when ChatGPT was creating buzz in the technology and business community. Then, technology leaders seemed to be focused on experimentation and limited pilots, whereas this year, their attention has shifted to practical use cases and how to find measurable value from AI.
Four hundred and fifty CIOs responded to our survey, and nearly 300 of them shared comments on their current and future outlook for AI. Here are three themes that emerged from our survey results.
1. AI is a competitive necessity with implementation challenges.
In the qualitative part of the survey, many CIOs emphasized the imperative to adopt AI to remain competitive and pointed out that failing to do so could result in being outpaced by competitors who leverage the technology effectively. One CIO wrote that AI “has significant opportunity, which is a risk if our competitors get their first.” Another executive said, “The competitive risk of getting left behind is far greater than any threat.”
Despite the urgency they might be feeling, technology leaders also cited challenges to implementing AI across their organizations. CIOs emphasized the importance of having the necessary skills, time, and resources to implement AI technologies successfully. They also shared that data quality, governing the use of AI internally and the change management aspects of AI implementation are all factors that might slow their adoption.
Even with these challenges, CIOs are making progress on AI implementation. Almost half of CIOs (45%) said they have developed some AI use cases or are piloting AI projects. Fourteen percent reported that they have already achieved measurable results, while nearly 30% said that their organizations still have more work to do – in areas like data quality and governance policies – before implementing AI.
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2. CIOs have strong concerns about implementing AI securely.
More than three-quarters of CIOs in our survey reported they are concerned about the security risks of AI. The next two highest areas of concern included governing how their workforce is using AI (72%) and ensuring that data privacy is rigorous (71%). When given the opportunity to list their “Other” concerns, CIOs cited “legal risks,” “quality or reliability of data sources,” and a “skilled workforce.”
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As they have started to implement AI more widely, it appears that IT leaders’ concerns have increased. Last year in our survey on GenAI, only 23% of CIOs were concerned about AI security risks, 23% about data privacy, and 21% about governance. This could be a reflection of their progress on implementing AI across the enterprise and how that has introduced more complexity.
Effective management of AI was a recurring theme for CIOs in the survey responses. They recognize AI as a potential game-changer if managed appropriately and want to ensure that ethical considerations and data privacy are maintained.
3. CIOs are realistic about AI hype, but remain optimistic about the potential.
In the survey, there was a widespread acknowledgment among CIOs of the hype surrounding AI. They expressed skepticism about the overblown promises and emphasized the need for realistic expectations. One executive wrote, “It is the wave of the future, but right now there is a lot of hype,” and another said, “If you can see through the hype cycle, there is much to be gained.”
In addition, they showed caution about the current maturity of AI solutions and the actual value they can deliver at this point. Despite this caution, there is a strong sense of optimism about AI's potential to transform business processes, enhance productivity, and drive innovation.
In fact, 91% of CIOs reported their outlook on the future of AI is “very positive” or “somewhat positive.” Only 8% of IT leaders are “neutral” on AI, and almost none described their outlook as negative.
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One CIO summed up their outlook this way: “It's a truly general technology that is already genuinely transformational and is only going to get more so. At the same time, we are definitely in the midst of a hype cycle.”
Overall, CIOs exhibit a mixture of positive expectations and cautious skepticism. They recognize AI's potential to drive significant business value but are also mindful of the risks, costs, and the need to manage expectations with organizational leaders and peers across the C-suite.
Their sentiments reflect a balanced approach to AI implementation, combining enthusiasm for AI's possibilities with a pragmatic understanding of the challenges and risks involved. They are working to maintain this balance, while feeling the pressure to make progress on AI adoption. As one CIO commented, “Both the business and IT are aware of how fast moving AI is, and there is some urgency to identify use cases.”
If you are a CIO currently navigating AI adoption, check out an opportunity to discuss it with your peers by joining an Evanta CIO community. If you are already a member, sign in to MyEvanta to find your CIO community’s next gathering.
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