Kearney and The Futurum Group recently shared a report showing that CEOs at high-revenue companies are placing artificial intelligence (AI) at the core of their strategies. In Europe and North America, many leaders feel they have a solid foundation for developing AI programs.
The authors, made up of three from Futurum and seven from Kearney, urge a realistic approach. They emphasize the importance of focusing on return on investment and building a solid data foundation for AI initiatives. They advise companies to prioritize gradual roll-outs instead of jumping in all at once.
The report, titled “Are CEOs ready to seize AI’s potential?”, highlights an interesting trend: the most successful companies are often those where leadership steps back from being hands-on with AI strategy. For instance, 92% of CEOs who don’t see tangible results insist on leading AI efforts themselves, while only 59% of those achieving measurable success take this approach. This suggests that a rigid top-down strategy might stifle expertise and collaboration across departments.
Interviews revealed that when the CEO acts more as a strategic guide, rather than diving into the daily management of AI, companies are better at allocating resources and measuring returns. CEOs who take a step back seem to integrate these practices more effectively, with 49% of them seeing good ROI compared to just 17% among their less successful peers.
In a survey conducted earlier this year, 213 CEOs from companies with over $1 billion in annual revenue shared their thoughts on AI governance and talent acquisition. The respondents came from various regions: 28% from Europe, 32% from North America, and smaller percentages from Asia Pacific, Latin America, the Middle East, and Africa.
Despite not feeling significant pressure from customers to adopt AI – only 24% reported client requests for AI solutions – many CEOs understand the urgency to prepare for AI-driven changes. Over half of them recognize the internal pressure to innovate, fearing they’ll fall behind as consumer expectations evolve. One CEO mentioned, “In three years, AI will drastically change how we operate. It’s going to take over many jobs.”
An impressive 89% of the CEOs see AI as critical for business transformation, yet only a quarter feel fully equipped to implement AI across their companies.
Right now, many businesses are taking baby steps with AI. One North American financial services CEO shared they’re starting with basic applications like generating customer statements and handling regulatory processes. Another CEO from the retail sector noted they’re focusing on learning from small projects before making more significant investments in AI by 2025.
While most leaders believe AI can enhance efficiency, few have detailed strategies to use advanced capabilities. Bill McDermott, CEO of ServiceNow, points out that AI is set to unlock almost a billion hours of productivity. He believes we need bold thinking, not just incremental changes.
The report suggests a measured approach to AI often leads to better outcomes. Organizations that take a “fast-follower” strategy report more consistent results than those jumping in headfirst. Those that rushed often faced challenges before confirming their return on investment, unlike those who took their time with smaller projects, resulting in smoother scaling.
The findings also highlight regional differences. European CEOs show a great interest in hiring specialized talent, especially in manufacturing and finance, with 63% seeking advice on AI project management. North American firms are reportedly more advanced, with 72% focusing on upskilling their workforce.
However, concerns about ethical risks like bias and privacy violations loom large among CEOs. Eighty percent acknowledge these as significant barriers, yet less than half have a structured governance framework in place. A CEO from a European company admitted their organization isn’t prepared to deal with AI-related ethical issues.
Looking ahead, the concept of “agentic AI,” which could make autonomous decisions, is on the horizon for many CEOs. They believe this could transform how business decisions are made, not just automate tasks, with one CEO speculating that AI could completely reshape their core business.