CEOs Eye AI Expansion Despite ROI, Data Challenges: IBM

A growing number of global CEOs are accelerating AI adoption across their organizations, even as they navigate challenges tied to data integration, workforce readiness, and return on investment, according to a new study by the IBM Institute for Business Value.

“Using AI and your enterprise data to identify where you have leverage is a competitive advantage,” says Gary Cohn, Vice Chairman, IBM. “Leaders who are not leveraging AI and their own data to move forward are making a conscious business decision not to compete.”

The study, which surveyed 2,000 CEOs in 33 countries and 24 industries, found that 61% of respondents are already deploying AI agents and preparing to scale them throughout their businesses. The pace of AI investment is also expected to more than double over the next two years, signaling a strategic push despite mixed results from earlier initiatives.

One of the main obstacles identified by executives is the difficulty of establishing a cohesive data architecture. While 72% view proprietary data as a critical asset for unlocking the value of Generative AI, half of the CEOs acknowledged that recent tech investments have resulted in fragmented systems that inhibit progress.

While AI is a top priority, CEOs are weighing the pressure to deliver short-term returns against the need to invest in long-term innovation. Only a quarter of AI initiatives to date have delivered expected ROI, and just 16% have reached enterprise-wide scale. Still, two-thirds of respondents say their companies are selecting AI use cases with clear ROI, and 68% report having metrics in place to evaluate innovation outcomes.

In the near term, AI investments remain focused on efficiency. A majority of CEOs said they are beginning to realize value from Generative AI beyond cost savings. By 2027, 85% expect their scaled AI initiatives aimed at efficiency and cost reduction to yield positive ROI, with 77% expecting the same from growth-oriented efforts.

Organizational talent strategies are also shifting in response to AI’s rapid integration. Nearly one-third of the workforce will require retraining or reskilling over the next three years, and 65% of CEOs say automation would be used to address skill gaps. Additionally, more than half of the CEOs surveyed report hiring for AI-related roles that did not exist a year ago.

However, leadership and expertise remain significant barriers to unlocking AI’s full potential. About 69% of CEOs link organizational success to having a broad leadership group with strategic decision-making authority, while 67% emphasize the need for specialized talent with the right incentives. A lack of cross-functional collaboration, risk aversion, and skills shortages are cited as top barriers to innovation.

“Organizations that keep innovating, especially during periods of uncertainty, will emerge stronger and be better positioned to capitalize on new opportunities,” says Mohamad Ali, Senior Vice President and Head, IBM Consulting.

The study was conducted in partnership with Oxford Economics between February and April 2025 and is part of IBM’s ongoing effort to analyze leadership strategies amid rapid technological change.