Artificial Intelligence (AI) and generative AI are currently hot topics among the thousands of C-level executives in Evanta communities. For nearly every role in the C-suite, the implementation of AI – or progress on the journey to implement on AI – is a top priority in 2024.
Last year, we surveyed Evanta community members about their approach to AI, when generative AI and ChatGPT were setting the business world abuzz. One year later, our data shows they are moving beyond experimentation and making progress with use cases and pilot projects.
Here is a snapshot of what 1,300 C-level executives said about the application and implementation of AI at their organizations.
What is the status of AI Implementation?
Nearly half of C-level executives (45%) report that they have developed some use cases and are piloting projects with AI. The next highest percentage of executives (26%) reports that they still have work to do before they can begin implementing AI.
In the comments, one executive noted, “We are doing pilots and waiting for most early bugs to be squashed.” Others shared that “Security is my #1 concern” and “[AI] carries a significant burden around security and governance.”
Last year, executives reported that they were primarily “experimenting and learning” or using AI only in an “ad hoc” way.
How does their organization approach technology adoption?
On a scale ranging from Innovators, Early Adopters and Early Majority to Late Majority and Laggards, nearly 40% of C-level executives put themselves squarely in the middle as Early Majority adopters of new technologies. Another 30% believes their organizations are in the Late Majority when it comes to the adoption of innovative solutions.
Are they taking the same approach to AI adoption?
When it comes to AI, 81% of executives report that their organization is taking the same approach as they do to all new technologies and solutions – placing most executives somewhere in the middle between Early Adopters and Late Majority adopters.
Nineteen percent are taking a different approach to AI than to other technologies with some adopting it earlier and citing the potential impact of AI as the reason. Executives commented that “We’re early adopters of AI vs general technology [because of the] transformational opportunities in AI along with business support.” Another noted that AI is “easily accessible and adoptable by many.”
However, some executives say their organizations are moving more slowly on AI with one noting, “AI risks, governance, data, and overall concerns are forcing us to go a bit slower.”
What might be slowing their adoption?
Almost 80% of C-level executives say they are concerned about security risks in implementing AI. Seventy-three percent have data privacy concerns, and 71% are worried about governing the use of AI internally. Under “Other” concerns, executives mentioned “all of the above [concerns],” “measurable return on investment,” “hallucination,” and “how to ensure compliance with global AI laws.”
The percentage of executives expressing these concerns about AI risks has grown tremendously since 2023. Last year, 23% of executives reported concerns about security, 23% about data privacy, and 20% about governance. This could reflect that organizations were only experimenting on a small scale last year, whereas this year, they are implementing broader use cases that are raising concerns for leaders.
What’s their outlook on AI?
Despite their concerns, executives maintain a positive opinion about AI and its potential impact. Eighty-seven percent say they are very positive or somewhat positive about the outlook for AI and its impact on business in the future. An almost negligible number of executives are negative about the future of AI. Executives’ outlook on the future of AI remains similar to what they reported last year, with even more feeling “very positive” about it in 2024.
How are they implementing AI tools?
Forty-three percent of executives report that their organization is primarily buying tools to implement AI, and another 41% say that they are equally buying and building tools. Few executives (7%) say that their business is primarily building AI tools themselves.
Current Sentiments About AI
We asked C-level leaders to expand on how they are currently thinking about AI and the implementation journey. Here is a sample of their comments:
Cautiously optimistic that we will be able to leverage it responsibly and attain results of value.”
A mixture of positive expectations for beneficial use, but skeptical of the promise being overblown.”
Complicated to showcase concrete ROI and a clear acceleration of our business process.”
A lot of hype to sort through but absolutely precious nuggets to be revealed eventually.”
AI is absolutely the future. We must get ahead of ethical and other use case concerns and ensure appropriate governance from the start. If we don't, corralling it in the future may prove to be near impossible.”
Cautious and pragmatic. AI is just another technology – it needs to be applied to the right problems and have an ROI like anything else. It is at the height of the hype curve and needs some realistic resetting.”
If you are a C-level executive navigating AI implementation at your organization, explore an opportunity to discuss it with your peers by joining an Evanta community near you. If you are already a member, sign in to MyEvanta to find your community’s next gathering.
Based on 1,300 responses to Evanta’s Community Pulse Survey, June 2024.
by C-Level, for C-Level
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