Five C-Level Themes on AI Adoption

Across our C-level communities so far this year, AI and generative AI have proven to be hot topics – regardless of a C-level executive’s role or the region in which they work. While last year the AI conversation seemed to be about exploration and experimentation, this year, executive discussions are centered around practical use cases and measurable results. 

About twice per year, we survey members of our C-level communities about a trending topic, like AI. Last year, we asked them about their approach to AI when generative AI and ChatGPT were setting the business world abuzz. Some key words that emerged from their answers were experimenting, learning, evaluating, and piloting. 

This year, we surveyed members on AI adoption, asking how they are progressing on implementing AI at their organizations, what their roadblocks and concerns are, and what their current sentiments are on the future of AI.

A whopping 1,300 executives responded – a measure of how pervasive this topic is for business leaders. Here are five themes that emerged from their survey responses.
 

1. AI Adoption is Imperative

Despite their concerns (more on that below), executives view implementing AI as a necessity to remain competitive. When asked about their current thinking on AI, they made comments like, “Embrace and learn it now, or don't at your own peril!” and “If we don't adopt it, we'll be left behind by the competition.” Another executive noted that “[AI] has significant opportunities, which is a risk if our competitors get there first.” 

And, they are reporting progress on their AI initiatives – with 45% of executives saying they have developed some use cases or are piloting projects. Almost 30% have either completed pilot projects or have already achieved some measurable results from AI implementation.

2. Major Concerns About Security, Data and Governance

C-level executives’ concerns about AI implementation came through loud and clear in the survey with a strong emphasis on the need for robust governance and security. In fact, nearly 80% of executives cite concerns about the security risks of AI adoption. Other top concerns include data privacy (73%) and governing the use of AI across the organization (71%).

One executive explained it this way: “Like any new innovation, it has the ability to transform how we do business and provide many ways to create efficiency so people can focus on innovating better. But ultimately, it also poses many more risks from a security perspective.”

Executives are also cautious about the potential misuse of AI by bad actors and the implications this has on the threat landscape, with one commenting, “[AI] will not make cybersecurity any easier, as more advanced attacks will come into play.”
 

3. Optimism about Creating Efficiencies

Despite their concerns, C-level executives have a positive outlook about AI and its potential impact on business. Eighty-seven percent say they are “very positive” or “somewhat positive” about the future outlook for AI. Much of that optimism is centered around AI’s potential to create efficiencies and improve productivity – one of executives’ top enterprise priorities in 2024.

One leader described their outlook this way: “Positive that when used thoughtfully, AI can improve output and efficiency.” Another wrote: “Excited for the variety of ways it will impact the efficiency of our employees.” 

Executives see AI as a tool that, when used securely and responsibly, can unlock significant value and drive business transformation. However, they also recognize that unlocking this potential requires careful planning and skill development.

4. Cautious About Hype vs. Reality

When we asked C-level leaders to expand on how they are currently thinking about AI, one word that came up repeatedly was “hype.” While they are cautiously optimistic, executives  recognize the current hype surrounding AI, expressing some wariness of overblown promises and emphasizing the need to focus on realistic, valuable use cases. 

One executive commented that they have “a mixture of positive expectations for beneficial use, but skeptical of the promise being overblown.” Another leader wrote: “I think we are still in a 'hype cycle' with respect to AI, and I think there is still a long way to go before it really begins to bear fruit for organizations.” 

There is a recognition that while AI has tremendous potential, it is still maturing, and not all solutions are ready for implementation across the organization.

5. Need for Upskilling & Change Management

C-level leaders also noted in their survey comments that there is a need for change management to accompany their AI initiatives. Some feel that business leaders outside of the technology or security space need more understanding on the risks associated with AI, and others believe that their organizations aren’t fully prepared with the skills required for successful AI implementation. 

One executive wrote that “we need the skills and the time to implement AI successfully,” while another reported feeling optimistic “with caution around skill gaps.” Another executive commented: “AI is evolving ahead of us, and we are not side by side with understanding and scoping the opportunities. We need to upskill our leaders to be able to lead in this space.”

They also recognize the need for cross-functional collaboration to find the best use cases and achieve some measurable results.

Overall, C-level executives seem balanced in their views on AI – recognizing the transformative potential but also the challenges that need to be addressed. They have progressed on their AI implementation journeys, but their concerns have also grown significantly as they look to roll out AI initiatives more widely.

A few executives summed up these balanced views this way:

It’s a big lever for productivity growth, but also needs investments in enabling foundation, e.g. data governance and data quality.”

Excited about the future potential to transform how we do business.”

Definitely eager to do more with it. We do recognize this is where we need to go for business purposes.”

For the complete findings from our recent survey, check out our infographic on AI Adoption.

If you are an executive navigating the implementation of AI, join an Evanta community to engage with your peers on the topic. Or, if you are already a community member, check out MyEvanta to view upcoming opportunities to discuss AI adoption in person and virtually with your C-level peers.